Homestead exemptions protect a person’s primary residence from certain creditor claims and, in many states, reduce the assessed value of the property for tax purposes. The amount of protection varies widely depending on the state. Some states offer unlimited homestead protection, while others impose a cap on the value that can be exempted.
What Is a Homestead Exemption?
A homestead exemption is a legal protection that shields a homeowner’s equity in their primary residence from certain types of creditors. In some states, the exemption also reduces property tax by excluding a portion of the home’s value from taxation. Homestead protections typically apply only to a person’s principal residence and not to vacation homes or rental properties.
In asset protection planning, homestead exemptions are important because they can prevent a creditor from forcing the sale of a debtor’s home to satisfy a judgment. However, the level of protection depends entirely on state law.
States with Unlimited Homestead Protection
A few states provide unlimited dollar protection for homesteads, meaning that a creditor cannot force the sale of a debtor’s home regardless of how much equity the homeowner has. In these states, the protection is typically subject to acreage limits.
- Florida: Unlimited protection for homesteads on up to 160 acres outside a municipality or up to one-half acre within a municipality. The owner must be a Florida resident and use the property as a primary residence. Protection is generally immune to fraudulent conveyance attack.
- Texas: Provides unlimited protection for homesteads on up to 10 acres in an urban area or 100 acres in a rural area (200 acres for families).
- Kansas: Offers unlimited protection for up to 160 acres in rural areas or 1 acre within city limits.
- Iowa, Oklahoma, and South Dakota also offer unlimited homestead exemptions, subject to acreage limitations.
States with High but Limited Exemptions
Several states impose a dollar limit on the amount of home equity that can be protected. These states still offer substantial homestead protection but may not fully protect high-value properties.
- Nevada: Protects up to $605,000 in home equity.
- California: Protects between $300,000 and $600,000 in home equity, depending on the county’s median home price.
- New York: Offers between $82,775 and $165,550 in protection for individual homeowners, depending on the county. Married couples may double the exemption.
- Massachusetts: Provides automatic protection up to $125,000, with the option to declare and increase it to $500,000.
States with Low or No Homestead Protection
Some states offer limited or no homestead exemption. These jurisdictions do not protect a meaningful amount of home equity from judgment creditors.
- New Jersey: Does not offer a homestead exemption for creditor protection purposes.
- Pennsylvania: Also lacks a statutory homestead exemption.
- Georgia: Provides only $2,000 of protection for a standard homestead exemption, with slightly more available for senior or disabled residents.
Claiming a Homestead Exemption
In states that require filing, a homeowner must file a declaration or application with the local property appraiser or court to claim the homestead exemption. In other states, the exemption applies automatically once the homeowner occupies the property as their primary residence.
Florida requires homeowners to establish permanent residency, and the exemption must be claimed with the local property appraiser. In addition to property tax benefits, Florida’s homestead law provides the strongest asset protection of any state.
State-by-State Homestead Exemption Chart
| State | Exemption Amount | Notes |
|---|---|---|
| Alabama | $16,450 | Applies to equity in primary residence. |
| Alaska | $72,900 | Only applies if declared in bankruptcy. |
| Arizona | $400,000 | Automatic exemption for equity in home, condo, or mobile home. |
| Arkansas | Unlimited | Acreage limits: 80 rural or 1/4 urban acre. |
| California | $300,000–$600,000 | Varies by county median home price. |
| Colorado | $250,000 | Increased to $350,000 for elderly or disabled homeowners. |
| Connecticut | $75,000 | $150,000 for joint owners. |
| Delaware | $125,000 | Applies in bankruptcy. |
| Florida | Unlimited | 160 acres rural / 0.5 acre urban; primary residence required. |
| Georgia | $2,000 | Increased amount for elderly or disabled residents. |
| Hawaii | $30,000 | $20,000 for head of household. |
| Idaho | $175,000 | Applies to a dwelling and surrounding land. |
| Illinois | $15,000 | $30,000 for married couples. |
| Indiana | $22,750 | $45,500 for joint owners. |
| Iowa | Unlimited | Up to 0.5 acre in city / 40 acres rural. |
| Kansas | Unlimited | Up to 1 acre urban or 160 acres rural. |
| Kentucky | $5,000 | Per person. |
| Louisiana | $35,000 | Applies to equity in residence. |
| Maine | $80,000 | Higher for elderly or disabled. |
| Maryland | $25,150 | Bankruptcy exemption only. |
| Massachusetts | $125,000–$500,000 | Must declare for full $500,000 protection. |
| Michigan | $40,475 | $60,725 for elderly or disabled. |
| Minnesota | $450,000 | Up to $1.125 million for agricultural property. |
| Mississippi | $75,000 | Applies to land and dwelling. |
| Missouri | $15,000 | Single-family residence only. |
| Montana | $378,560 | Updated annually based on CPI. |
| Nebraska | $60,000 | Must occupy property as residence. |
| Nevada | $605,000 | Automatic upon occupancy. |
| New Hampshire | $120,000 | Applies to home and land. |
| New Jersey | None | No general homestead exemption. |
| New Mexico | $60,000 | $120,000 for married couples. |
| New York | $82,775–$165,550 | Varies by county; doubled for joint owners. |
| North Carolina | $35,000 | $70,000 for spouses. |
| North Dakota | $100,000 | Applies to house and land. |
| Ohio | $145,425 | Updated periodically. |
| Oklahoma | Unlimited | 1 acre urban / 160 acres rural. |
| Oregon | $40,000 | $50,000 for joint owners. |
| Pennsylvania | None | No general homestead exemption. |
| Rhode Island | $500,000 | Must file homestead declaration. |
| South Carolina | $63,250 | $126,500 for joint owners. |
| South Dakota | Unlimited | Up to 1 acre in city or 160 acres rural. |
| Tennessee | $5,000–$25,000 | Higher for elderly, disabled, or with minor children. |
| Texas | Unlimited | 10 urban / 100 rural acres (200 family). |
| Utah | $42,000 | $84,000 for joint owners. |
| Vermont | $125,000 | Applies to primary residence. |
| Virginia | $25,000 | Additional for elderly, disabled, and dependents. |
| Washington | $125,000–$729,600 | Based on county median home price. |
| West Virginia | $25,000 | Applies to personal residence. |
| Wisconsin | $75,000 | $150,000 for married couples. |
| Wyoming | $20,000 | Primary residence only. |
Note: Exemption amounts are subject to change. Check current state law or consult an attorney in that state for the most accurate information.
Florida’s Unique Homestead Advantage
Florida’s homestead exemption is one of the strongest in the country. It protects the full value of a home, regardless of its market value, as long as the homeowner meets residency and acreage requirements. In addition, the Florida Supreme Court has ruled that a homestead is generally exempt from forced sale even if the debtor makes a fraudulent conveyance of money into the home.
Our firm regularly helps clients leverage Florida’s homestead protections as part of a broader asset protection strategy.
About the Author
Gideon Alper is an attorney who specializes in asset protection planning. He graduated with honors from Emory University Law School and has been practicing law for almost 15 years.
Gideon and the Alper Law firm have advised thousands of clients about how to protect their assets from creditors.
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