The rapid escalation of property values in recent years, outpacing inflation by almost 27% since 2020, is leading to significantly increased property tax bills. This is a direct consequence of jurisdictions not adjusting their millage rates downwards, according to data from Tax Foundation the average US home sales price exploded from $371,100 to $525,100 in a mere two years.  Looking to reduce or potentially eliminate your property tax burden in 2025? Here are five key exemptions that might help you significantly lower or even eliminate your property tax obligations.  

1. Homestead Exemption

This primary residence exemption shields a portion of your home’s value from taxation. The amount varies significantly by location – some states offer a few thousand dollars in exemption value while others may exempt tens of thousands. Some jurisdictions offer enhanced homestead exemptions for seniors, veterans, or disabled homeowners.  You can also get a California homestead exemption on property taxes, in which you’re taxed on the value of your home minus the exemption amount.   

2. Senior Citizen Property Tax Exemption

Many states and localities offer substantial property tax reductions for homeowners over a certain age (typically 65+). These exemptions can range from modest reductions to “freeze” programs that lock in your assessment value or tax rates.  For instance, San Diego County’s Proposition 19 allows homeowners aged 55 and older to transfer their existing property tax assessment to a new primary residence, potentially enabling them to upgrade their living situation without a tax increase.”

3. Disabled Veteran Exemption

Veterans with service-connected disabilities often qualify for significant property tax relief. In some states, veterans with 100% disability ratings may receive complete property tax exemptions on their primary residence.  The Disabled Veterans’ Exemption in California reduces the property tax liability on the principal place of residence of qualified veterans who, due to a service-connected injury or disease, have been rated 100% disabled or are being compensated at the 100% rate due to unemployability. An unmarried surviving spouse of a qualified veteran may also claim the exemption.

4. Agricultural/Farm Use Exemption

If your property qualifies for agricultural use designation, you may receive substantial tax reductions. These programs assess land based on its agricultural value rather than its potential development value, often resulting in dramatically lower tax bills. California offers substantial property tax relief to agricultural landowners through agricultural preserve contracts. By agreeing to keep their land (minimum acreage requirements apply: 10 for groves/crops, 80 for grazing, 40 for mixed-use) undeveloped for at least 10 years, landowners benefit from tax assessments based on farming and open space use, leading to estimated annual savings of 20% to 75%.