The Many Financial Benefits of Homesteading

Homesteading may initially seem like an expensive hobby. After all, if you decide you’re going to raise chickens and begin using solar energy to power your home, both may require a significant investment. However, homesteading actually offers many financial benefits, some of which you may be quite surprised to learn.

Homestead Tax Advantages

Most states have homesteading laws and tax credits or advantages. In many cases, it’s a great way to save money on your property taxes. The homestead tax exemption essentially makes part of the value of your home exempt from property taxes. For example, if a property is worth $180,000 and is eligible for a $25,000 homestead tax exemption, then the property will only be taxed at $155,000. The amount of your homestead tax exemption varies according to state tax laws and the value of your home.

Sustainability Tax Credits and Savings

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Another way that homesteading can save you money is with sustainability and alternative energy savings. For example, in many states if you install solar energy panels, a geothermal system, or other energy-saving appliances, you may receive a tax credit. You also save money on your monthly energy bills and may even get a credit from the energy company if your solar cells produce more energy than you use. There are both federal and state alternative energy tax credits to review to see what you’re eligible for.

Saving On Groceries

Depending on the scale of your garden you can save anywhere from a few dollars a week to several hundred dollars a year on groceries. A simple herb garden can save money on buying dried or fresh herbs at the store. If you have land and can plant larger crops with an abundant yield, you can save hundreds each month. A package of carrot seeds costs less than five dollars and you can grow pounds and pounds of carrots with one bag of seed.  (See our Sustainable Gardening blog for more helpful gardening tips.)

Whether you want to save money or you’re simply looking for a way to live a more natural and rewarding lifestyle, homesteading offers a number of benefits. Next time we’ll take a look at why homesteading is good for the environment, so stay tuned!