How the State System Works
Under 11 U.S.C. Section 522(b)(2), each state can pass legislation "opting out" of the federal bankruptcy exemptions. When a state opts out, debtors filing in that state must use the state's own exemption laws rather than the federal list under Section 522(d).
This creates enormous variation. A debtor in Texas can protect an unlimited amount of equity in their home, while a debtor in New Jersey is limited to nothing under state law (though they can choose the $27,900 federal homestead because New Jersey allows the federal option). A debtor in Kansas can protect unlimited homestead equity; a debtor across the border in Missouri gets $15,000.
Three categories of states:
Choice states -- you pick federal or state exemptions (whichever is better for your situation)
Opt-out states -- you must use state exemptions only
The distinction matters enormously. In a choice state, a renter with no home equity might choose federal exemptions to access the generous wildcard. A homeowner in the same state might choose state exemptions if the state homestead is higher than $27,900.
50-State Exemption Table
This table shows each state's homestead exemption amount and whether the state allows the federal exemption choice. Homestead amounts shown are for a single filer; many states double the amount for married couples filing jointly.
| State | Federal Allowed? | State Homestead | Notes |
|---|---|---|---|
| Alabama | Opt-out | $16,450 | $32,900 for married couple |
| Alaska | Choice | $72,900 | -- |
| Arizona | Opt-out | $250,000 | -- |
| Arkansas | Choice | Unlimited (rural 160 acres; urban 1/4 acre) | Head of family only |
| California | Opt-out | $300,000 -- $600,000 | Based on county median home price; own state system includes "System 1" and "System 2" |
| Colorado | Opt-out | $250,000 | $350,000 if elderly or disabled |
| Connecticut | Choice | $75,000 | -- |
| Delaware | Opt-out | $125,000 | -- |
| D.C. | Choice | Unlimited | D.C. allows federal or D.C. exemptions |
| Florida | Opt-out | Unlimited (1/2 acre urban; 160 acres rural) | Must be FL resident 730+ days |
| Georgia | Opt-out | $21,500 | $43,000 for married couple |
| Hawaii | Choice | $30,000 | $45,000 if head of family |
| Idaho | Opt-out | $175,000 | -- |
| Illinois | Opt-out | $15,000 | -- |
| Indiana | Opt-out | $22,750 | -- |
| Iowa | Opt-out | Unlimited (1/2 acre urban; 40 acres rural) | -- |
| Kansas | Opt-out | Unlimited (1 acre urban; 160 acres rural) | -- |
| Kentucky | Choice | $5,000 | -- |
| Louisiana | Opt-out | $35,000 | $70,000 for married couple; limited acreage |
| Maine | Opt-out | $47,500 | $95,000 if age 60+ or disabled |
| Maryland | Opt-out | $25,150 | -- |
| Massachusetts | Choice | $500,000 | Automatic; $1,000,000 with declaration |
| Michigan | Choice | $40,475 | $60,725 if age 65+ or disabled |
| Minnesota | Choice | $450,000 | $1,125,000 for agricultural property |
| Mississippi | Opt-out | $75,000 | 160 acres |
| Missouri | Opt-out | $15,000 | -- |
| Montana | Opt-out | $350,000 | -- |
| Nebraska | Opt-out | $60,000 | 2 lots urban; 160 acres rural |
| Nevada | Opt-out | $605,000 | -- |
| New Hampshire | Choice | $120,000 | -- |
| New Jersey | Choice | $0 (none) | Federal homestead ($27,900) available via choice |
| New Mexico | Choice | $60,000 | -- |
| New York | Opt-out | $179,950 -- $399,975 | Varies by county |
| North Carolina | Opt-out | $35,000 | $60,000 if age 65+ |
| North Dakota | Opt-out | $100,000 | -- |
| Ohio | Opt-out | $145,425 | -- |
| Oklahoma | Opt-out | Unlimited (1 acre urban; 160 acres rural) | -- |
| Oregon | Choice | $40,000 | $50,000 if on same land as two or more dependents |
| Pennsylvania | Choice | $0 (none) | Federal homestead available via choice |
| Rhode Island | Choice | $500,000 | -- |
| South Carolina | Opt-out | $63,250 | -- |
| South Dakota | Opt-out | Unlimited (1 acre urban; 160 acres rural) | -- |
| Tennessee | Opt-out | $5,000 | $7,500 for joint owners; $25,000 if age 62+ |
| Texas | Choice | Unlimited (10 acres urban; 100/200 acres rural) | Most generous homestead in the country |
| Utah | Opt-out | $43,300 | $86,600 for married couple |
| Vermont | Choice | $125,000 | -- |
| Virginia | Opt-out | $5,000 | $10,000 for married couple; plus $500 per dependent |
| Washington | Choice | $125,000 | -- |
| West Virginia | Opt-out | $25,000 | -- |
| Wisconsin | Opt-out | $75,000 | 40 acres; increased for agricultural use |
| Wyoming | Opt-out | $20,000 | $40,000 for married couple |
Disclaimer: State exemption laws change frequently. The amounts above are approximate and may not reflect the most recent legislative changes. Always verify current amounts with a local bankruptcy attorney or your state's statutes before filing.
Key Takeaways
Unlimited Homestead States
Six states offer unlimited homestead exemptions: Arkansas, Florida, Iowa, Kansas, Oklahoma, South Dakota, and Texas. However, all of them impose acreage limits. And under federal law, if you acquired the homestead within 1,215 days of filing, the exemption is capped at $189,050 regardless of state law (Section 522(p)).
States With No Homestead
New Jersey and Pennsylvania have no state homestead exemption at all. However, both are choice states, so debtors can elect the federal exemptions and claim the $27,900 federal homestead under Section 522(d)(1).
The 730-Day Look-Back
If you have not lived in your current state for the majority of the past 730 days, you may be forced to use the exemptions of your prior state. This prevents last-minute moves to states with more generous exemptions. If the 730-day rule leaves you without any applicable state, the federal exemptions become your default option under Section 522(b)(3).
Which System Should You Choose?
If you live in a choice state, run the numbers both ways. Renters often do better with federal exemptions because of the generous wildcard. Homeowners in states with high homestead exemptions often do better with state exemptions. There is no universal answer -- it depends entirely on your specific assets.
Legal References
- 11 U.S.C. Section 522(b) -- State opt-out authority
- 11 U.S.C. Section 522(b)(3) -- Domicile and 730-day rule
- 11 U.S.C. Section 522(p) -- 1,215-day homestead cap
- Federal exemptions -- Complete Section 522(d) list
- Homestead exemption guide -- Detailed homestead analysis
- 1328f.com -- Free discharge eligibility screening tool