Tip – Remember to apply for the Homeowner’s Exemption when transferring property.
The Idaho homeowner’s exemption provides property tax relief for qualifying homeowners, but it comes with specific requirements that property owners must understand to maintain eligibility.
The homeowner’s exemption is not automatically applied. Property owners must actively request the exemption through the appropriate county assessor’s office. This is a critical step that many property owners overlook.
To qualify for the homeowner’s exemption, the property owner must actually live in the home as their primary residence. The exemption is not available for:
- Investment properties
- Rental properties
- Second homes or vacation properties
- Properties where the owner does not reside
When a property has multiple owners, all owners must live in the home and request the exemption to maintain eligibility. This requirement creates potential complications in various ownership scenarios, including:
- Joint ownership between spouses where one spouse relocates
- Family members added to title who don’t reside in the property
- Business partnerships or LLC ownership structures
Gifting your home to family members or others can result in the loss of the homeowner’s exemption. This is a significant financial consideration that property owners should carefully evaluate before transferring ownership.
When you gift your home:
- The new owner(s) must meet all exemption requirements independently
- If the new owners don’t live in the property or fail to request the exemption, the tax benefit is lost
- The property tax burden may increase substantially without the exemption
Recommendations
- Before gifting property: Consult with an attorney to understand the full implications
- For current homeowners: Ensure you have properly applied for and are receiving the homeowner’s exemption
- For multiple owners: Verify that all owners meet the residency requirements
- Annual review: Check with your county assessor to confirm exemption status remains active
For specific questions about the homeowner’s exemption, contact your local county assessor’s office.
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Tom Packer is an Elder Law Attorney serving all Southeast Idaho. As part of his law practice, Tom offers Life Care Planning to deal with the challenges created by long-term illness, disability and incapacity. If you have a question about a Senior’s legal, financial or healthcare needs, please call us.
August 2025