The amount you save depends upon the tax rate or mill rate for your town. Property taxes are based on the assessed value of your home. If you are eligible for the homestead exemption, the Town will reduce your home's assessed value by up to $25,000 before applying the tax rate. The assessed value is the figure your municipality assigns for tax purposes. For example, your home may be worth $450,000 in market value but assesses for $350,000 for property tax purposes. Your town then calculates your property tax liability using a Mill Rate. The Mill Rate is the amount of tax per $1,000 of value. Continuing with our example, if your Mill rate is $18.00 and your assessed value is $350,000, you will owe $6,300 a year in property taxes.

SAVINGS EXAMPLE: $450

($25,000 / $1,000 x $18.00 = $450).

 (Department of Administrative and Finacial Services Maine Revenue Services State of Maine , 2000)

The homestead exemption provides a reduction of up to $25,000 in the value of your home for property tax purposes.

To qualify:

1. You must be a permanent resident of Maine,

2. The home must be your permanent residence,

3. You must have owned a home in Maine for the twelve months prior to applying

4. An application must be filed on or before April 1 with the municipality where the property is located.

5. The exemption applies to any residential property that is assessed as real property. For instance, a mobile home located on a rented lot may qualify for the exemption.

You can download the application on the  Homestead Exemptions page

DID YOU KNOW?

    You DON’T need to apply for the exemption each year as long as your ownership & residency status remain unchanged.

  You CAN’T have more than one Homestead exemption.

 The homestead exemption is limited to only your primary residence; camps, vacation homes, and second residences do not qualify.

   If you also qualify for a veteran or blind exemption, the homestead exemption is in addition to those exemptions.

Please visit Property Tax Exemptions page for more information.