When you purchase a home in Idaho and the home is your primary residence, you have the option to apply for the Idaho homeowners exemption. This exemption reduces your property tax liability. Property taxes are calculated using the assessed value of your home and the total of all taxing district rates in which you live. To take advantage of the maximum homeowners exemption you must complete a form provided to you by your county, complete the form, and submit the form before the deadline.
Before taxing your property, two things have to be done. First, the assessors office has to put a value on your property. This is referred to as the assessed value. You can use our "Find my Parcel Number" tool to look up your property to see the assessed value for the current and past year. You can also ask the county to reassess the property if you disagree with the number they come up with. Regardless, your property must have an assessed value to be taxed.
The second thing that has to be done is the county must determine how much tax they need, and what tax money each tax district needs. Once they have that number they come up with percentages or tax rates.
With assessed value and tax rates in place, they county can then calculate property tax.
The property tax exemption is applied to a home based on fifty percent of the assessed value of a owner-occupied primary residence, including manufactured homes, or $100,000, whichever is less as of 2018 tax year. So if you have a home that is assessed at $300,000 divided by 50 percent, the assessed value would be $150,000. Because the adjusted assessed value is $150,000, and the $100,000 rule is less, the home would receive a reduction on the first $100,000 and be taxed at the regular rate for the remaining assessed value of $200,000.
How to Keep Your Exemption
Luckily, you don't need to remember every year to apply for your extension. You only need to do it the first year that you own the home. The exemption will then remain in place on the property until another owner is recorded on the county records, at which time the new owner must go to the county and apply for their own property tax reduction.
To apply for the homeowners exemption, you must submit an application to your county office before April 15 if you want it to take effect the following year. Each county will have the form you need. Here is a sample from Madison County Homeowners Exemption Form.