$125,000. This is the maximum amount that can be deducted from the assessed value for the Idaho Homeowner's Exemption. If you purchased a home in Boise this year, this is the first number you should keep in mind.

In recent consultations, I've found that many people have completed their final payments and moved in, yet haven't applied for this exemption. Quite a few thought it was applied automatically.

To be clear, it is not automatic. You must submit an application to the county assessor's office to receive it.

The calculation method is straightforward. It deducts the lesser of 50% of the assessed value of the home and land up to one acre or $125,000 from the taxable value.

For example, if the assessed value of your home is $500,000, 50% would be $250,000, but due to the cap, only $125,000 is deducted. Taxes are then assessed on the remaining $375,000.

If the assessed value is $200,000, then $100,000 is deducted. Ultimately, any home with an assessed value over $250,000 will receive the maximum of $125,000.

Currently, it's hard to find single-family homes under $250,000 in Ada County, so most Boise homeowners will receive the full cap amount.

This $125,000 cap has remained unchanged since 2021. The Canyon County assessor has also indicated that this amount will remain until the council makes changes.

Honestly, considering how home prices have risen, it's disappointing that the cap has been stagnant for so long. However, the difference between receiving it and not is still significant.

This year, there is one change. House Bill 843, passed by the legislature in 2026, eliminated the prorating of the exemption.

According to a notice from the Idaho State Tax Commission issued in April, this law will be retroactively applied as of January 1, 2026, after the governor's signature.

Previously, if you applied late in the year, only a portion of the exemption would be applied. Now, once approved, you will receive the full exemption for that year.

So when is the deadline? Previously, the deadline was April 15, but that deadline has been eliminated since the 2021 tax year.

Currently, the guidance from Ada County states that applications should be submitted by December 31 of that year. Some places, like Elmore County, specify a deadline time of 5 PM.

Since December 31 falls during the holiday season, the office may close early, so it's wise to check the exact time in advance. Personally, I would aim to finish before Christmas.

The eligibility requirements are simpler than you might think. The home must be your primary dwelling, and you must already be living in it.

There are no income or age restrictions. However, an individual can only receive the exemption for one home.

Therefore, investment properties that are rented out do not qualify. If you were already receiving an exemption at a previous address, the county will verify that as well.

The fastest way to apply is to submit online through the Ada County Assessor's website. You can also download the application and send it by mail, fax, or email.

If you apply online, you will receive a confirmation email, but this only indicates that your application has been received, not that it has been approved. Many people confuse this part. If you want to know the status of your approval, it's best to check with the assessor's office after submission.

It's also important to note that even within the same area, the rules can vary by jurisdiction. Boise, Meridian, Eagle, and Garden City are all in Ada County, so you can submit to the same assessor's office.

However, if you cross into Canyon County, like in Nampa or Caldwell, the application must be submitted to the Canyon County assessor. Don't get confused just by the address.

Recently, the legislature discussed a bill requiring applicants to provide their Idaho driver's license or ID number. I haven't confirmed whether this will be implemented, so I recommend asking about it when you apply.

There are also common oversights among Korean residents. Some may move from another state and forget to change their driver's license, or they may be so busy with paperwork that they forget to apply altogether.

If you've just moved from another state, I want to emphasize that submitting this application is more urgent than unpacking. It only takes a few minutes online, and if you miss it, you lose out on a year's worth of benefits.

The actual tax savings vary by school district, city, and fire district, as tax rates differ from home to home. Even North End and West Boise have different rates.

So rather than assuming you'll save a few dollars, it's more accurate to check next year's tax bill to see if the homeowner's exemption amount is correctly reflected.

If you have questions, you can contact the Ada County Assessor's office at (208) 287-7200. This article is based on information from the county and state tax commission as of November 2026.

If you bought a home this year, be sure to apply within the next seven weeks. It's really a shame to miss out on benefits due to just one piece of paperwork.