Idaho Homeowners Exemption: Save On Your Property Taxes

Posted by Lisa Kohl on Friday, March 1st, 2019 at 7:37pm

Have you applied for your Idaho Homeowners Exemption for the 2020 tax year yet?

If you’ve recently purchased a house or moved to Idaho, you may be eligible for a property tax exemption. You’ll likely spend more money on owning a home than any other one thing in your life, so a tax break is a welcome relief.

A property tax exemption reduces the net taxable value of your home and up to one acre of your property. Instead of calculating your property tax percentage based on the full value of your home, the Idaho Homeowners Exemption subtracts $100,000 and determines your tax rate based on the resulting amount.

In 2019, the legislature set the exemption reduction at an even $100,000 (up to a maximum of 50% of the properties value), to remain in effect until the legislature reviews this number as needed.

How the Homeowners Exemption Works

Let’s say your county assessor’s office values your home at $200,000. With an approved Homeowners Exemption application, the taxable value of your home would be reduced to $100,000. In other words, your property tax burden could be cut in half with an exemption. It’s easy to apply, and once your application is approved, your exemption will remain permanent unless you move or change your primary residence.

Who for a Qualifies Homeowners Exemption

Idaho residents who own and occupy a home as their primary residence can apply for an Idaho Homeowners Exemption any time after they move in. There are some exceptions made for active military personnel. Idaho residents can only qualify for a Homeowner's Exemption on one property.

How to Apply

To claim the exemption in any given tax year, you must own your home by January 1st and apply by April 15th. Depending on your county, the application forms may be available online or via email. In some cases, you may have to visit your county assessor’s office and file out a paper copy. You may need to provide your Idaho Driver’s License information for an online application to prove your identity.

If your application is approved, you won’t receive notice, but instead will see the exemption reflected in your annual assessment report.

Maintaining Your Homeowners Exemption

The good news is that once your exemption is approved, you won’t have to reapply while you own and occupy the property unless you file a new deed. If you move and purchase a different home, you’ll need to reapply for an exemption for your new home.

Maximum Idaho Homeowner's Exemption by Year

New Construction

If you’ve moved into a newly constructed home, the April 15th deadline may not apply and you may be able to secure a mid-year tax exemption. You’ll receive notice from your county assessor’s office that your home has been appraised. Submit your Homeowners Exemption application within 30 days of receiving notice to avoid waiting until the following tax year to claim your exemption.

Don’t Wait

County assessor’s offices will tell you that too often homeowners wait until the last minute to file their exemption applications.

Since you can apply at any time of the year—not just right before Tax Day—it’s worthwhile to get the process started and over with rather than delaying it. This way, if you haven’t understood the law correctly or have made a mistake on your application, you’ll have time to finalize your exemption application before the deadline passes.

Lisa Kohl

Lisa Kohl is a full-time real estate professional in Boise, Idaho. Lisa’s experience as a Realtor helps her clients successfully complete real estate transactions without a hitch. Questions about this post, send us and message. We love receiving questions from our readers. They allow us to focus our content on issues that are important and relevant to sellers and buyers in Idaho.

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