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Tuesday, February 7, 2012

Fnally Getting My Homestead Tax Exemption

I just submitted the paperwork to get my homestead exemption from my property taxes! I wasn't eligible until i was a resident on the property as of Jan 1st. So since I moved in back in July I had to pay full taxes, even though it was my primary residence.

The specifics vary by state, but in most states you can get a property tax deduction of some kind for your primary residence. Usually this is in the form of a deduction off the assessed value of your house. And this is definitely something you should take advantage of. I am ALL about saving money, especially when i'm saving it from going to the government!

Here in my county in Florida, property taxes are pretty high, so for my $110,000 house the taxes were still around $200 a month (ugh). However the homestead exemption removes $50,000 from the value before the taxes are assessed, so from now on they will be just over 100 bucks a month. So my savings will be about $1000 a year! Booyah

That is going straight to the stash for early retirement.

Always check and see what kind of deductions are available for you, as some of them can be substantial.

-The Money Monk

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