New York Homestead Exemption in 2025

New York Homestead Exemption in 2025

(State vs. Federal Exemptions – Updated Figures)

For New York homeowners filing bankruptcy in 2025, it’s crucial to understand your homestead exemption options. New York is a choice state—if you’ve lived here for at least two years, you can choose between the New York state exemptions or the federal exemptions, but not both midtownbankruptcy.com.

🏡 New York State Homestead Exemption Limits (effective 2005)

Per metro classification(Double if married, both spouses own the property):

  • $204,825 – in New York, Kings, Queens, Bronx, Richmond (NYC), Nassau, Suffolk, Rockland, Westchester & Putna

  • $149,975 – in Albany, Dutchess, Columbia, Orange, Saratoga & Ulster

  • $102,400 – in all other upstate counties midtownbankruptcy.com+1midtownbankruptcy.com+1

These values adjust every three years based on inflation.

🚗 Other Major New York State Exemptions

🏛️ Federal Homestead Exemption (2025 Figures)

Under 11 U.S.C. § 522:

  • $31,575 per individual (or $63,150 for married couples filing jointly)

  • Applies the 1,215-day rule if you bought your home less than 1,215 days before filing—may cap exemption at $214,000

  • Includes a significant federal wildcard (currently $15,425 per person) and other non-homestead protections midtownbankruptcy.com+7midtownbankruptcy.com+7midtownbankruptcy.com+7

🧠 Which Way Is Best? Strategic Considerations

  1. Equity in Home

    • Filing in NYC or downstate counties? State homestead exemption gives you $204,825, far more than the federal $31,575—or $63,150 joint.

    • In upstate areas, compare state cap of $102,400 vs. federal caps.

  2. Recent Home Purchase

    • Bought your home recently (within 1,215 days)? The federal cap might limit your exemption to $214,000, even if home value is higher.

  3. Other Assets

    • If you have significant personal property, cash, or retirement savings, the federal wildcard and other exemptions may offer more flexibility.

  4. Couples Filing Jointly–where both have an ownership interest in the home.

    • Both systems allow doubling exemptions under § 522(m). For federal: $63,150 homestead and for NYS up to $409,650.

🧩 How to Claim Your Exemption

  1. Residency Check: You must have lived in NY for the past two years to choose state exemptions.

  2. Calculate Both: Always run a comparison grid.

  3. Choose Wisely: In your Schedule A/B list the property, and in Schedule C choose either “New York” or “Federal” exemptions.

  4. Statutory Citation: Use CPLR § 5206 for state; 11 U.S.C. § 522 for federal.

  5. Expect Objections: Trustees or creditors may challenge—under Bankruptcy Rule 4003, burden is on them.

📊 Quick Comparison Table

Aspect New York State Federal
Homestead cap (2025) $102,400 – $204,825, depending on county $31,575 individual / $63,150 joint
Wildcard + Cash $0 (homestead used) / Cash up to $6,825 + wildcard $1,325 Wildcard $17,475 per person
Vehicle equity $5,500 (or $13,625 if modified for a handicapped person) $4,450 vehicle (under § 522(d)(2))
Tools / personal property Tools: $4,075; Household goods: $1,325 Covered under wildcard only
Retirement / benefits Fully exempt under both systems Same

✅ Conclusion: Optimal Strategy in 2025

For most homeowners, particularly in metro NY counties, the New York state homestead exemption offers significantly more protection than the federal system—on its own and even compared to federal plus wildcard. But if your assets are other than real estate, the federal exemptions may tip the scales.

Given the complex interaction of exemptions, purchase timing, and asset mix, it’s wise to:

  1. Model both exemptions side-by-side

  2. Watch for the 1,215-day home‑purchases rule

  3. Consider professional insight—a bankruptcy attorney can tailor the strategy to your situation

Stay informed: check both CPLR § 5206 for NY and 11 U.S.C. § 522 for federal law. If S.8109A passes (proposed upgrade to $600k for metro counties), state will be unbeatable—but as of June 2025, your exemption remains at $204,825

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