Homestead Exemption

Definition

A homestead exemption protects a homeowner's primary residence from forced sale by most creditors (excluding mortgage lenders and tax authorities). In New York, the homestead exemption amount varies by county — ranging from $75,000 to $150,000 of equity. The exemption does not apply to mortgage liens, mechanic's liens, or property tax liens. It is automatically available to homeowners; no filing is required. Some states also use homestead exemptions to reduce property tax assessments, though New York's STAR program serves this function instead.