What is the home improvement exemption?
The home improvement exemption is a tax benefit that can provide significant savings when you renovate your property.
This exemption can vary by location, but generally, it allows homeowners to increase their property’s assessed value without facing an immediate increase in property taxes. For instance, in some areas, you might be exempt from taxes on improvements worth up to $75,000 for a set period, typically around three to eight years. This means that while you can enhance your home through renovations—like bathroom upgrades or adding a deck—you won’t see an immediate spike in your property taxes due to these improvements.
To qualify, the home must usually be your principal residence, and you must file an application with your local assessor’s office. It’s crucial to note that not all improvements qualify; for example, general maintenance or certain outbuildings might not be eligible.
If you’re planning a renovation, it’s a good idea to check with your local government or assessor’s office for specific details on the exemption, including application deadlines and what types of improvements are covered. This can help you save money on property taxes while enhancing your home’s value.