The Taxpayer Relief Act provides for property tax reduction allocations to be distributed to school districts through a "homestead or farmstead exclusion." The homestead can't exceed one acre in a city or 160 acres in a rural area.To receive a homestead or farmstead exclusion, a Pennsylvania resident must submit an application to the county assessor prior to March 1. Most states set a maximum level of homestead protection, but some, like Pennsylvania, provide no state homestead protection at all. The "Homestead and Farmstead Property Exclusion" is a program that may make possible a real estate tax reduction of the owner. A homestead exemption can benefit homeowners if one spouse in a twoincome household dies. This can provide asset protection from creditors for at least some of house's value. You will need to file the Declaration with the Clerk and Recorder's Office in the county where the homestead is located. Need More Information? New Jersey and Pennsylvania have no homestead exemptions.
