Homestead Exemptions by State
A homestead exemption protects equity in a primary residence from judgment creditors. The strength of that protection varies enormously across jurisdictions. A handful of states protect an unlimited dollar value, meaning that a creditor cannot force the sale of a homestead regardless of the equity involved. Most states impose a cap, and a few provide no creditor-focused homestead protection at all.
This page surveys all fifty states and the District of Columbia, with particular attention to the features that matter most for asset protection planning: the dollar limit, acreage restrictions, whether the exemption is constitutional or statutory, and whether the state permits fraudulent conveyance challenges to homestead conversions.
Why Homestead Exemptions Matter for Asset Protection
In asset protection planning, the homestead exemption is often the single most important domestic tool available. Unlike trusts, LLCs, or offshore structures, the homestead exemption is a constitutional or statutory right that does not depend on a court’s discretion or a trustee’s cooperation. It applies automatically once the homeowner meets residency and occupancy requirements, and in the strongest states, it cannot be defeated by a judgment creditor under any circumstances short of the narrow exceptions that apply to all homesteads (mortgages, property tax liens, and mechanic’s liens).
The practical consequence is that a homeowner in a state with unlimited homestead protection can hold millions of dollars in home equity that remains permanently beyond the reach of unsecured creditors. A homeowner in a state with a $15,000 exemption holds almost no protected equity at all. For individuals with significant litigation exposure, the difference between these two outcomes can determine whether a lawsuit results in financial inconvenience or financial devastation.
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States with Unlimited Homestead Protection
Seven states and the District of Columbia offer homestead exemptions with no dollar cap on the value of the protected equity. In these states, protection is limited only by acreage or lot size. The unlimited-value states are Florida, Texas, Kansas, Iowa, Oklahoma, South Dakota, and Arkansas. The District of Columbia also provides unlimited protection.
Among these states, Florida and Texas stand apart as the most commonly used for asset protection purposes. Both have deep bodies of case law interpreting their homestead provisions, and both have constitutional protections that are extremely difficult to amend. Florida offers the additional advantage of judicial immunity from fraudulent conveyance challenges when a debtor converts non-exempt assets into homestead equity, a feature that no other unlimited state matches.
The acreage limits in unlimited-value states are worth noting. Florida protects up to one-half acre within a municipality and 160 acres outside a municipality. Texas protects 10 urban acres or 100 rural acres (200 for a family). Kansas protects 1 urban acre or 160 rural acres. Iowa protects one-half acre in a city or 40 acres in a rural area. These limits rarely matter for suburban homeowners but can be significant for those with large rural properties or unusual lot configurations.
States with Strong but Limited Exemptions
Several states impose dollar caps that are high enough to protect most homeowners but may leave high-equity properties exposed. These include Nevada ($605,000), California ($300,000 to approximately $744,000 depending on county median home prices, adjusted annually for inflation), Massachusetts ($500,000 with a filed declaration), Rhode Island ($500,000), Minnesota ($450,000, with $1,125,000 for agricultural property), Arizona ($400,000), and Washington (the greater of $125,000 or the county median sale price).
For asset protection planning, these states present a meaningful but limited tool. A homeowner with $400,000 in equity in Nevada is fully protected. A homeowner with $2 million in equity is not. The exemption provides a floor of protection but does not eliminate the need for additional planning through entities, trusts, or other structures.
Ohio ($145,425), Montana ($378,560), and Colorado ($250,000, increased to $350,000 for elderly or disabled homeowners) fall into a middle tier that protects a substantial portion of equity for most homeowners but offers little comfort to those with high-value properties.
States with Weak or No Homestead Protection
A number of states offer exemptions so low that they provide almost no meaningful protection from judgment creditors. New Jersey and Pennsylvania have no general homestead exemption for creditor protection purposes. Georgia offers only $21,500 ($43,000 for married couples). Kentucky caps its exemption at $5,000. Illinois protects only $15,000 ($30,000 for married couples). Virginia provides $25,000 with modest additional amounts for elderly and disabled homeowners.
Homeowners in these states who face significant litigation risk cannot rely on the homestead exemption as a planning tool and must look to other strategies, including LLCs, domestic and offshore trusts, retirement account exemptions, and tenancy by the entirety protections where available.
Bankruptcy Limitations on Homestead Exemptions
Federal bankruptcy law imposes additional restrictions on homestead exemptions that apply regardless of the state exemption amount. Under 11 U.S.C. § 522(p), if a debtor acquired homestead property within 1,215 days (approximately three years and four months) before filing for bankruptcy, the exemption is capped at $214,000 for any value attributable to non-exempt property converted into homestead equity during that period. This cap applies even in unlimited-exemption states like Florida and Texas.
Under 11 U.S.C. § 522(q), the exemption is also capped at $214,000 if the debtor has been convicted of certain felonies, committed securities fraud, or engaged in other specified misconduct. And under 11 U.S.C. § 522(o), the exemption is reduced by the value of any non-exempt property that the debtor transferred into homestead with the intent to hinder, delay, or defraud creditors within ten years before filing.
These federal limitations are significant for asset protection planning because they mean that the full benefit of unlimited state homestead exemptions is available only outside of bankruptcy. A debtor who converts assets into homestead equity and subsequently files for bankruptcy may find the exemption substantially reduced. This is one reason why Florida’s fraudulent conveyance immunity under Havoco of America, Ltd. v. Hill, 790 So.2d 1018 (Fla. 2001), is particularly valuable: it applies in state court regardless of whether the debtor ever files for bankruptcy.
Filing Requirements
Some states require homeowners to file a declaration of homestead or similar document to claim the creditor protection. Others provide automatic protection once the homeowner occupies the property as a primary residence. Filing requirements vary not only by state but sometimes by context: a state may provide automatic protection against creditors but require a filing to claim a property tax reduction.
In Florida, the homestead exemption for creditor protection purposes is automatic and does not require a filing, though Florida Statute § 222.01 permits a homeowner to record a declaration of homestead to put creditors on notice. The property tax exemption under Article VII, Section 6 of the Florida Constitution does require an application to the county property appraiser.
State-by-State Homestead Exemption Chart
The following table shows the homestead exemption amount available in each state for creditor protection purposes. Amounts reflect the most recent available figures and are subject to change through legislative action or inflation adjustments.
| State | Exemption Amount | Acreage / Property Limits |
|---|---|---|
| Alabama | $18,800 | Property up to 160 acres |
| Alaska | $72,900 | Primary residence |
| Arizona | $400,000 | Primary residence |
| Arkansas | Unlimited | ¼ acre urban / 80 acres rural |
| California | ~$371,000–$744,000 | Primary residence; varies by county median home price; adjusted annually for CPI |
| Colorado | $250,000 | Primary residence ($350,000 if owner is 60+ or disabled) |
| Connecticut | $75,000 | $150,000 for joint owners |
| Delaware | $125,000 | Bankruptcy exemption only |
| District of Columbia | Unlimited | Primary residence |
| Florida | Unlimited | ½ acre in municipality / 160 acres outside municipality |
| Georgia | $21,500 | $43,000 for married couples |
| Hawaii | $30,000 | Head of household |
| Idaho | $175,000 | Dwelling and surrounding land |
| Illinois | $15,000 | $30,000 for married couples |
| Indiana | $22,750 | $45,500 for joint owners |
| Iowa | Unlimited | ½ acre in city / 40 acres rural |
| Kansas | Unlimited | 1 acre urban / 160 acres rural |
| Kentucky | $5,000 | Per person |
| Louisiana | $35,000 | 5 acres in city / 200 acres elsewhere |
| Maine | $80,000 | Higher for elderly or disabled |
| Maryland | $25,150 | Bankruptcy exemption only |
| Massachusetts | $125,000–$500,000 | Must file declaration for $500,000 protection |
| Michigan | $40,475 | $60,725 for elderly or disabled |
| Minnesota | $450,000 | $1,125,000 for agricultural property |
| Mississippi | $75,000 | 160 acres |
| Missouri | $15,000 | Single-family residence |
| Montana | $378,560 | Adjusted annually for CPI |
| Nebraska | $60,000 | 2 lots in city / 160 acres rural |
| Nevada | $605,000 | Primary residence |
| New Hampshire | $120,000 | Primary residence |
| New Jersey | None | No general homestead exemption |
| New Mexico | $60,000 | $120,000 for married couples |
| New York | $82,775–$179,950 | Varies by county; doubled for joint owners |
| North Carolina | $35,000 | $70,000 for spouses |
| North Dakota | $100,000 | Primary residence |
| Ohio | $145,425 | Primary residence |
| Oklahoma | Unlimited | 1 acre urban / 160 acres rural |
| Oregon | $40,000 | $50,000 for joint owners; 1 block urban / 160 acres rural |
| Pennsylvania | None | No general homestead exemption |
| Rhode Island | $500,000 | Must file homestead declaration |
| South Carolina | $63,250 | $126,500 for joint owners |
| South Dakota | Unlimited | 1 acre in city / 160 acres rural |
| Tennessee | $5,000–$25,000 | Higher for elderly, disabled, or with minor children |
| Texas | Unlimited | 10 acres urban / 100 acres rural (200 for family) |
| Utah | $42,000 | $84,000 for joint owners |
| Vermont | $125,000 | Primary residence |
| Virginia | $25,000 | Additional amounts for elderly and disabled |
| Washington | ≥$125,000 | County median sale price or $125,000, whichever is greater |
| West Virginia | $25,000 | Primary residence |
| Wisconsin | $75,000 | $150,000 for married couples |
| Wyoming | $20,000 | Primary residence |
Exemption amounts are subject to change. Consult an attorney in the applicable state for the most current figures.
Florida’s Position in the National Landscape
Florida’s homestead exemption is the strongest in the country when evaluated from a comprehensive asset protection perspective. Several features combine to produce this result. The exemption is unlimited in dollar value and is enshrined in Article X, Section 4 of the Florida Constitution, making it extremely difficult to modify. The Florida Supreme Court has held that converting non-exempt assets into homestead equity is not a fraudulent conveyance that creditors can reverse. The exemption applies automatically upon establishing residency and occupancy. And the protection extends after the homeowner’s death through constitutional inurement provisions that shield the property from estate creditors.
Texas offers a comparable exemption in many respects, but Florida’s fraudulent conveyance immunity and more protective treatment of sale proceeds give it an edge for asset protection planning. The differences are examined in detail in our Florida vs. Texas homestead comparison.
For individuals considering relocation as part of an asset protection strategy, the choice of state can have dramatic consequences for the security of their home equity. A move from New Jersey to Florida transforms a home from an unprotected asset into one that is essentially judgment-proof.