Maine Real Estate License Practice Exam

A resident has lived in a primary residence in Maine for the previous 12 months. What is the maximum Homestead Exemption they could qualify for?

1. $10,000

2. $6,000

3. $13,000

4. $20,000

The correct answer is: $20,000

The maximum Homestead Exemption that a resident could qualify for in Maine is $25,000; however, this provides an opportunity to achieve a better understanding based on the options available. According to the Maine Homestead Exemption program, qualifying homeowners may be eligible for a property tax exemption of up to $25,000 on the assessed value of their primary residence. It's important to note that the Homestead Exemption not only reduces the property tax burden for eligible residents but also encourages long-term residency by providing tax relief. The specific amount exclaims the financial benefits to homeowners living in their primary properties for at least 12 months. In this case, while D states $20,000, which is slightly below the correct maximum exemption amount, residents in Maine must ensure they file for this exemption and meet other qualifications set forth by their local municipality to receive the benefit fully. Therefore, understanding the Homestead Exemption criteria is crucial in assisting homeowners in maximizing their tax savings.