What’s a homestead exemption?
One of the perks of New Orleans homeownership is the ability to defer some of your property taxes via the homestead exemption. If you’re new to NOLA, I’m sure you’re probably asking “what the heck is a homestead exemption?”.
The short answer is that the exemption allows residents to take $75,000 off of the taxable value of their primary residence before property taxes are calculated, basically exempting you from a portion of your property taxes.
There are some exceptions of course. No one is exempt from paying for police and fire services.
What are the rules?
It must be your primary residence – the house you live in day-to-day. It does not apply to vacation homes or second homes.
It’s permanent as long as you own and reside in the property. If you move, you’ll need to file an exemption on your new home.
Age freezes are allowed when a homeowner turns 65, but must be applied for.
Disability freezes are also allowed, but must be reapplied for annually.
How do I apply for the exemption?
You must go the assessor’s office in person with the following documentation:
- Proof of ownership (act of sale or warranty deed)
- A valid Louisiana ID or driver’s licence with the corresponding property address
- A current unpaid Entergy bill, landline telephone bill, or cable bill with the service address and mailing address being the same as the property address
When you buy your home, you’ll have a delay of about 4-6 weeks before you’ll receive your recorded act of sale documents to use as proof. That gives you plenty of time to set up your utility accounts and to hit the DMV and get that license updated.
Have questions about buying a home in New Orleans? We’ve got answers.
Call us today at 504-327-5303.