What’s a Homestead Exemption and How Do I Get One?

If you own your home in Maine you may be able to apply for a Homestead Tax Exemption. This is a worthwhile savings on your annual or bi-annual property tax bill for Maine residents. You can find out if you’re eligible and apply by contacting your municipality or tax assessor directly.

In simple terms, your tax bill will be calculated on $25,000 less than the assessed value of your home prior to the municipality’s calculation of property taxes due.

There are two factors that are used to find the property tax owed on your home. They are the assessed value and the mil rate. The assessed value is based on the tax assessor or municipality’s valuation of your home. The Mil rate is your town or municipality’s adjustable formula. The mil rate can be adjusted by the town to help meet their budget each year.

A word to the wise: Set a reminder in your calendar on the one year anniversary of your home purchase to reach out to your tax assessor and apply for the homestead exemption. It’s not often a huge difference in your tax bill but it’s a great addition to your financial picture.

To find out if you qualify as a permanent resident of Maine visit Maine Legislatures Title 36, Part:2