Homestead Exemptions

Homestead Exemption

 

Does your home qualify for exemptions?

  • You must own your home on January 1
    • Your homestead can be a separate structure, condominium or a mobile home located on land that you own.
    • A residence may be owned by an individual through an interest in a qualifying beneficial trust and may be occupied by a trustor of a qualifying trust.
  • The home must be your principal residence on January 1
    • If you have more than one house, you can only receive exemptions for your principal residence.
    • If you temporarily move away from your home, you can still get an exemption if you do not establish another principal residence and you intend to return. For instance, if you enter a nursing home, your home still qualifies as your homestead if you intend to return.
    • Military personnel stationed elsewhere but, are Oklahoma citizens, may be granted homestead exemption.oA parent residing in a home which is jointly owned with the parent’s nonresiding child may receive the exemption.
    • Renting part of your home or using part of it for a business does not disqualify the remainder of your home from the exemption.

 

What home exemptions are there?

  • Homestead Exemption
    • If you maintain a homestead and meet the ownership and residency requirements, you should qualify for homestead exemption. Homestead exemption is a $1,000 deduction from the gross assessed value of your home.
    • In most cases this will result in between $80 and $120 in tax savings. To apply for the exemption contact the county Assessor’s office anytime during the year and ask for the application forms. Homestead applications received after March 15 will be credited to the following year. You do not have to apply each year providing your ownership or place of residence does not change. Property placed in living trusts is eligible for the exemption. Contact your county Assessor for details and forms.
  • Additional Homestead Exemption
    • If your gross household income from all sources (except gifts) is $20,000 or less a year and, you meet all the homestead exemption requirements, you may qualify for an additional $1,000 exemption. Contact your county Assessor for Form 994 to make application.
  • Property Tax Refund/Credit
    • If your gross household income from all sources (except gifts) is $12,000 or less and, you are at least 65 years of age OR totally disabled, you may be eligible for a property tax refund. Application is made on Form 538-H which you may obtain from the Oklahoma Tax Commission, Forms Section. You must pay your property taxes in full to the county and attach your receipt to the 538-H form. The tax refund is calculated by subtracting 1% of your income from the amount of property taxes you paid. A refund may not exceed $200.00.

 

Are you a veteran, surviving spouse, or totally disabled?

  • Beginning January 1, 2006 you may qualify for a property tax exemption if you are either (1) a veteran, (2) the surviving spouse of a veteran, or (3) a totally disabled veteran. You must be an Oklahoma resident.
  • An exemption from property tax on homesteads is available for 100% disabled veterans. The exemption would apply to certain injured veterans and their surviving spouses. The exemption would be for the full fair cash value of the homestead real and household personal property. To qualify for the exemption the veteran would have to meet several requirements.
  • 1. The veteran must have been honorably discharged from a branch of the Armed Forces or the Oklahoma National Guard. 2. The veteran would have to be a State resident. 3. The veteran would have to have a 100% permanent disability. Fourth, the disability would have to have been sustained through military action or accident, or result from a disease contracted while in active service. Fifth, the disability would have to be certified by U.S. Department of Veterans Affairs. Finally, the veteran would have to be otherwise qualified for homestead exemption. The exemption can be claimed beginning January 1, 2006. Exemptions must be applied for in the same year it is requested.
  • Ask your county Assessor for details.

 

How to File for an Exemption

  1. Get an application form at your local county Assessor office. Fill out only one application. There is a separate application for the 100% veteran’s exemption. (OTC Form 998)
  2. Return the form to the Assessor’s office. Homestead applications may be submitted to the Assessor throughout the year, but only those received by March 15 will be effective in the current year. Making false statements on your exemption application is a criminal offense. Requirements may be different for 100% disabled veterans.
  3. Provide necessary information. For example, if your home is a manufactured home, you must have a copy of the title to the home or a verified copy of the purchase contract.
  4. If the Assessor denies or modifies your exemption, he or she must tell you in writing within five days. This notice must explain how you can protest before the CBOE.
  5. Once you receive a homestead exemption or a disabled veteran’s exemption, you do not have to apply again, unless your qualifications change. If you move to a new home, you will have to fill out a new application for your new home the following year.
  6. The Assessor may require a new application by sending you a written notice and an application form. If you do not return the new application, you can lose your exemptions.