Louisiana homebuyer guide

Louisiana's homestead exemption: what new owners need to file

Louisiana's homestead exemption takes $75,000 of market value off most property taxes on your home. Here's how it works, the New Orleans difference, and when to file.

The short version: Louisiana exempts $7,500 of assessed value, about the first $75,000 of market value, from most property taxes on the home you own and live in. It doesn't cover city taxes in most of the state, but in Orleans Parish it does reach general city taxes. You claim it with your parish assessor after you buy, and it can also open the door to the state's Fortify Homes roof grant.

Closing day feels like the finish line. In Louisiana there's one more errand that can save you real money every year: filing your homestead exemption with the parish assessor. Nobody files it for you, and the title company won't always remind you. Here's what it is, what it's worth, and how to keep it.

What the homestead exemption does

Louisiana assesses homes at 10% of fair market value. A $200,000 house has an assessed value of $20,000. The homestead exemption, written into Article VII, Section 20 of the Louisiana Constitution, knocks $7,500 off that assessed value. That's why you'll hear people call it "the first $75,000."

Your tax bill is the taxable assessment times the local millage. One mill is a tenth of a cent per dollar, or $1 for every $1,000 of taxable assessment. Lower taxable assessment, lower bill.

Which taxes it covers, and the New Orleans difference

This is the part most out-of-state guides get wrong. Under the constitution, the exemption covers state, parish and special taxes, but it does not reach municipal taxes in most of Louisiana. Taxes levied for school purposes are the exception.

Orleans Parish is different. There, the exemption also applies to state, general city, school, levee and levee district taxes. The City of New Orleans notes that a few millages, including some police and fire levies, are applied without the homestead exemption.

What that means for you:

Buying inside the city limits of Baton Rouge, Lafayette, Shreveport or another municipality? Part of your bill, the city millage, gets no homestead break.
Buying in unincorporated parts of a parish? There's no city millage to worry about.
Buying in New Orleans? The exemption reaches more of the bill than it does almost anywhere else in the state.

A New Orleans example

The City of New Orleans lists a 2026 total citywide millage of 121.20 mills. Here's a rough example with illustrative figures. It ignores the levies that don't get the exemption and any special district fees, so your real bill will differ.

Line	No homestead	With homestead
Market value	$250,000	$250,000
Assessed value (10%)	$25,000	$25,000
Homestead exemption	$0	−$7,500
Taxable assessment	$25,000	$17,500
Tax at 121.20 mills	about $3,030	about $2,121

That's roughly $900 a year in this example, or about $75 a month off your escrow. For a first-time buyer close to the 50% debt-to-income limit on HomeStart loans, that can matter.

Who qualifies

You must own it and live in it. The constitution says the home must be owned and occupied by the owners. If you co-own with someone who doesn't live there, the exemption applies only to the share owned by the people who do.
One per person. No one gets more than one homestead exemption in Louisiana, and married couples don't get two.
Timing. State law says you must own and occupy the home by December 31 of the year you claim it. In Orleans Parish, the law ties eligibility for the following year to the property's status on August 1.
Bond for deed doesn't count. If you're buying on a bond for deed contract instead of with a recorded act of sale and mortgage, the constitution bars the homestead exemption, apart from a narrow group of older contracts.
Manufactured homes. A manufactured home that is your primary residence can qualify even if you don't own the land under it. In that case the exemption covers the home, not the lot.

How to file

You file with the assessor in the parish where the home sits, not with the state. Each parish office sets its own process and paperwork, and some take applications online. Call or check your assessor's website after closing and ask what proof they want. Keep a copy of your recorded act of sale handy, since it shows when you became the owner. The act of sale guide explains that document.

One warning from state law: knowingly giving false information to get the exemption is a misdemeanor. If you move out and rent the place, tell the assessor.

Why your first escrow bill can surprise you

When you buy, your lender sets up an escrow account based on the best tax figure it has, usually the seller's last bill. If the seller had a homestead exemption or a special assessment freeze and you don't file yours, your real bill can come in higher, and the escrow account comes up short. If the seller had no exemption and you file promptly, your bill may drop. Either way, file early and send your lender the new bill when it arrives.

Louisiana property taxes are generally billed late in the year. Homes are reassessed at least every four years, so values can shift on a schedule even if nothing else changes.

Extra breaks to know about later

Special assessment level. Owners who are 65 or older, or who meet certain disability or veteran conditions, can freeze their assessed value if their income falls under a yearly limit. The assessor has the current figure.
Disabled veterans. In parishes whose voters approved it, veterans with a 100% service-connected disability rating get a larger exemption. Ask your assessor if your parish adopted it.
Disaster damage. If a declared disaster damages your home, the constitution lets you keep the exemption for a set time while you rebuild, as long as you file a yearly affidavit saying you intend to move back.

The roof grant connection

The Louisiana Fortify Homes Program, which helps pay for a storm-rated roof, checks your homestead exemption if you're selected for a grant. Filing quickly keeps that door open. See FORTIFIED roofs and the Fortify Homes grant.

If you're still at the "can I buy at all?" stage, check your eligibility first. Then put the assessor's office on your list for the week after closing.

Questions people ask

How much is the homestead exemption in Louisiana?

It exempts $7,500 of assessed value. Because homes are assessed at 10% of market value, that equals about the first $75,000 of market value.

Does the homestead exemption apply to city taxes?

Not in most of Louisiana. The constitution excludes municipal taxes except those for school purposes. Orleans Parish is the exception: there it also reaches general city taxes, though some New Orleans levies are applied without it.

Where do I apply for the homestead exemption?

With the assessor in the parish where your home is. Each assessor sets its own process, so ask what proof of ownership and residence it needs.

Can I get a homestead exemption on a bond for deed purchase?

Generally no. The Louisiana Constitution bars the exemption on bond for deed property, except for a small group of older contracts.

Do I lose the exemption if a hurricane damages my house?

Not right away. After a declared disaster you can keep it for a period while you rebuild by filing a yearly affidavit of intent to return with your assessor.

Free download: our Louisiana homebuyer checklist. The paperwork, the steps, the programs and the questions worth asking, all on one printable page. Get the checklist