HOMESTEAD EXEMPTION

Application Process

Eligible homeowners must complete an application for homestead exemption with the Tax Assessor’s office in the county where the home is located.  Homestead Exemption Applications are only accepted in the county Tax Assessor’s office during normal business hours between January 1 and April 1 of each year. You must complete your application in its entirety and sign an affidavit attesting to the truthfulness of the answers given.

Please contact your county Tax Assessor’s office to determine any county-specific requirements before you go in to apply, but generally, you will need:

• Social Security Numbers (SSN) for all applicants.  If an applicant does not have an issued SSN, an Individual Tax Identification Number (ITIN) issued by the United States Internal Revenue Service is the only accepted alternative.
• Date of birth for all applicants.
• Phone numbers and email addresses for all applicants.
• Physical address of the property.  P.O. Box numbers cannot be used to apply for homestead exemption.
• Total purchase price of the property.
• Amount of down payment.
• HUD Closing Statement or other transaction documents.
• Current automobile tag numbers of all vehicles owned by you or that are in your possession, including company vehicles. 

Once an applicant has a valid, allowed homestead application on file, the applicant is credited with that exemption each year without the need to refile unless:

• The applicant loses homestead exemption for any reason.
• There has been a change in property description, ownership, use or occupancy since January 1 of the preceding year. Marriage, divorce, remarriage, death, deed changes, change of eligibility status for disability benefits or Veterans Affairs benefits, and many other events, can trigger the need to reapply for homestead exemption. If you are unsure whether a new homestead application is required, contact your county Tax Assessor’s office.
• The applicant qualifies under a different homestead exemption tier. For instance, when a homestead applicant turns 65 years old, they will need to reapply during the next filing period to avail themselves of the increased exemption tier. 

Eligibility Requirements

Eligibility requirements include, but are not limited to:

• Homeowners must apply for homestead exemption with the county Tax Assessor’s office during the designated filing period (January 1 – April 1).
• Applicants must own and occupy their home as their primary residence on January 1 of any year in which they seek homestead exemption.  Ownership must be established prior to January 1st, and the ownership instrument filed with the Chancery Clerk’s office prior to January 7th, for any year in which exemption is sought.
• Applicants must meet the definition of “Head of Family” under Miss. Code Ann. Section 27-33-13.
• Applicant must “own” the property in a manner recognized in Miss. Code Ann. Section 27-33-17.
• The applicant’s homestead must meet the definition of “home” and “homestead” as defined in Miss. Code Ann. Section 27-33-19.  Additional exceptions for what cannot qualify for homestead exemption are outlined under Miss. Code Ann. Section 27-33-21.
• Applicants, and their spouses, must comply with Mississippi Income Tax laws and Mississippi Road and Bridge Privilege Tax laws.  No claimant for homestead exemption shall be eligible if they or their spouse claim to be a resident of another jurisdiction when assessed for Mississippi Income Tax.

Military personnel who own a home in Mississippi, but are stationed outside the state of Mississippi, can qualify for homestead exemption if they claim residency in Mississippi and maintain compliance with all applicable Mississippi laws.  If the servicemember is married, both spouses must qualify. 

Exemption Amount

TIER 1: Regular Exemption – This exemption tier is available to qualified applicants under 65 years of age that do not qualify for a disability exemption under the next two tiers.  Eligible applicants can receive a tax credit of up to $300 (based on property value) against taxes due on the property.

TIER 2: Age/Disability Exemption – This exemption tier is for qualified applicants who are at least 65 years of age, or totally disabled, by January 1 of the year in which exemption is sought.  Applicants in this tier are exempt from taxes on the first $7,500 of assessed value of their homestead.  After the first year, the exemption can increase to include most future increases in value.  

Applicants in this tier must provide proof of age (driver’s license or birth certificate) or proof of total disability.  Acceptable proof of total disability includes:

• Classification as totally disabled under the federal Social Security Act (42 USCS Section 416(i)), the Railroad Retirement Act, or any other federal act approved by the Department of Revenue.
• Classification as totally disabled under the provisions of a retirement plan that is qualified under the United States Internal Revenue Code.
• Internal Revenue Service Schedule 3 and Schedule R.
• Detailed letter from two physicians outlining the disability and expected duration.

TIER 3: Total Exemption – As defined below, qualified applicants under this tier are exempt from all property taxes on their qualifying homesteads.

• Applicants classified as service-connected, total disability as an American veteran who has been honorably discharged from military service and their unremarried surviving spouses.
• Applicants who are honorably discharged American veterans at least 90 years old on or before January 1 of the year in which exemption is claimed, and their unremarried surviving spouses.
• Applicants who are the unremarried surviving spouse of a member of the United States Armed Forces who was killed or died on active duty.
• Applicants who are the unremarried surviving spouse of a member of a reserve component of the United State Armed Forces or of the National Guard who was killed or died on active duty for training.

Disallowance of Homestead Exemption

Homestead exemption will be disallowed if an applicant fails to maintain eligibility by following all applicable laws.  Common reasons for homestead exemption disallowance include failure to timely file Mississippi income tax return, failure to timely pay Mississippi income taxes, filing income taxes as a non-resident, failure to properly register vehicles, claiming homestead exemption on more than one property, and failure to re-apply when there has been a change in property description, ownership, use or occupancy since January 1 of the preceding year.  

In many instances, a homestead exemption disallowance will result in the disallowed homeowner having to repay tax jurisdictions for the exemption they received in error.  Such instances can impact future property tax assessments, mortgage payments, and/or escrow payments, and could result in collections efforts initiated by the taxing jurisdictions.