LOUISVILLE, Ky. -- Homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors and circumstances arising from the death of the homeowner spouse.

The primary goal for a homestead exemption is to reduce your taxable assessment.

The Kentucky homestead exemption applies to property owners 65 or older who own the home in which they live.

If you are eligible, the amount of the exemption is subtracted from your property’s assessed value.

The exemption amount is increased every two years to reflect the increase on the cost of living.

For 2007-2008, the exemption amount is $31,400.

Only one exemption is allowed per household.