valuation
tax exemption
A tax exemption is a full or partial release from paying property taxes, granted by law to certain owners or properties. Fully exempt properties often include those owned by governments, religious organizations, schools, and charities. Partial exemptions, such as homestead, senior citizen, veteran, or disability exemptions, reduce a property's taxable assessed value. Eligibility and amounts vary by state and locality.
- Exam tip
- An exemption reduces the assessed value before the tax rate is applied; a credit reduces the tax bill itself. Exemptions usually require an application.
- Example
- A home assessed at $250,000 qualifies for a $50,000 homestead exemption, so taxes are calculated on $200,000.
Related terms & state variants
Sources
Source verification pending. Confirm current requirements with your state regulator.
Last verified: 2026-10-23