Understanding the Homestead Exemption: A Simple Way to Save on Property Taxes

When it comes to property taxes, every homeowner wants to save money. The Homestead Exemption is one of the easiest and most effective ways to reduce your annual tax bill if you live in Allegheny County and the City of Pittsburgh. However, many homeowners don’t realize this exemption exists or how simple it is to apply.

In this post, I’ll break down what the Homestead Exemption is, how it works, who qualifies, and why it’s a no-brainer for most homeowners. Let’s get started!

What Is the Homestead Exemption?

The Homestead Exemption reduces the assessed value of your property, which in turn lowers the amount of property taxes you owe. In Allegheny County, this exemption applies to both county and city property taxes, as well as school district taxes.

Here’s how it works:

• County and City Taxes: Your property’s assessed value is reduced by $18,000.

• School District Taxes: If you’re in the Pittsburgh Public School District, an additional $29,447 is deducted from your assessed value.

These reductions mean you’re taxed on a much smaller portion of your home’s value, which can lead to significant savings.

Who Qualifies for the Homestead Exemption?

To qualify, you must:

1. Own the Property: You must be the legal owner of the home.

2. Occupy the Property: The home must be your primary residence (where you live most of the year).

3. Apply by the Deadline: The application must be submitted to Allegheny County by March 1, 2025, to take effect for that year’s taxes.

If you meet these criteria, the Homestead Exemption is available to you. Even if you’ve recently purchased a home, you’re still eligible to apply for the exemption as long as the property is your primary residence.

How Much Can You Save?

Assessed Value: My soon-to-be home’s assessed value is $148,087.

Homestead Exemption Reductions:

• $18,000 for county and city taxes.

• $29,447 for school district taxes.

Adjusted Assessed Value:
$148,087 - $47,447 = $100,640.

Tax Savings:
With millage rates from Allegheny County, the City of Pittsburgh, and the Pittsburgh Public School District combined, the Homestead Exemption saves me approximately $1,175 annually.

That’s over $1,000 every year back in my pocket—money that could go toward a family vacation, home improvements, or simply enjoying a few nights out at your favorite restaurants.

It’s important to note that this savings calculation is based on the Common Level Ratio (CLR) for 2025, which has been reduced to 52.7%. This reduction impacts the assessed value of your home and, by extension, your property taxes. If you’re curious about how the CLR works and why it’s important, I’ve written an in-depth blog post that explains it all: Understanding the Common Level Ratio in Allegheny County.

Want to calculate your potential savings? Use the Allegheny County Real Estate Portal to check your current assessed value and apply the Homestead Exemption deductions to see how it impacts your taxes.

How to Apply for the Homestead Exemption

Applying for the Homestead Exemption is simple and free. Here’s how to do it:

Step 1: Gather Your Information

You’ll need:

• Your property’s Parcel ID (found on your property tax bill or via the Allegheny County Real Estate Portal).

• Proof that you own and occupy the property (e.g., deed or utility bill).

Step 2: Submit the Application

• Visit the Allegheny County Homestead Exemption Page to download the application form.

• Fill out the form with your property and contact details.

• Submit the form online, by mail, or in person to the Allegheny County Office of Property Assessments.

Step 3: Wait for Approval

Once your application is processed and approved, the exemption will be applied to your next tax bill.

What Happens After You’re Approved?

Once you’re approved, the Homestead Exemption stays in place as long as you own and live in the home. If you move, sell the property, or use it as a rental, you’ll need to notify the county and reapply for the exemption on your new primary residence.

Common Questions About the Homestead Exemption

Q: Can I still apply if I missed the March 1 deadline?

Unfortunately, no. If you miss the deadline, you’ll need to wait until the following year to apply.

Q: Does the exemption apply to rental or vacation properties?

No, the Homestead Exemption only applies to your primary residence.

Q: Does my mortgage company handle this for me?

No, you need to apply directly with the county. Your mortgage company will adjust your escrow account once the exemption is applied.

Why You Should Apply Today

The Homestead Exemption is one of the easiest ways to save on your property taxes, especially if you’re a homeowner in Allegheny County or the City of Pittsburgh. With the cost of living continuing to rise, every bit of savings helps—and the application process is quick and straightforward.

Ready to save? Apply for the Homestead Exemption here, and if you have any questions or need help navigating the process, feel free to reach out to me.

By taking advantage of this exemption, you’re not only saving money but also making your homeownership experience a little less stressful. And who doesn’t want that?

If you found this post helpful, feel free to share it with other homeowners who might benefit. Let’s make sure everyone takes advantage of this simple yet powerful tax-saving tool!