Property Tax Tips and Homestead Exemption Rules for 2022

The new year is upon us, which means it’s time to start thinking about paying taxes. In addition to federal taxes, Texas homeowners are subject to annual real estate property taxes. To plan for the year ahead, it’s helpful to get a sense of what you can expect in terms of property taxes for 2022. Below we offer property tax tips for the year ahead along with some news about changes to the homestead exemption law that you can expect.

Property Tax Tips For 2022

Texas’ property tax rate is ranked 6th in the U.S at a rate of roughly 1.83%. Although this may not seem like a big percentage, it can quickly add up depending on the value of your property. The average property tax expenses for Texas homeowners are $3,600 annually. Here are some tips for saving money on your property taxes:

• Observe tax deadlines. Property taxes for Texans are due every year on January 31st. Sticking to this hard and fast deadline can ensure that you don’t pay additional fees and penalties for being late. Tax penalties in the state of Texas are six percent for the first month plus one percent for each additional month you are delinquent.
• Look for possible exemptions. There are a number of possible exemptions that Texas homeowners can qualify for, so it’s worth your time to look into them. Some exemptions include exemptions for disabled veterans, senior citizens, and disabled persons’ exemptions, to name a few.
• Appeal the taxable value of your home. As mentioned, the tax assessor is the entity that generates the taxable value of your home. If you feel that there are errors in the appraisal of your home or you are unsatisfied with the result, you can file a Notice of Protest with the appraisal review board. Although this can be a seemingly complex process, it can significantly reduce your taxes if you’re successful.

Take advantage of the homestead exemption. The homestead exemption in Texas is one of the best tools Texas homeowners can use to save money on their property taxes. Simply put, the homestead is an exemption from property taxes that can be claimed by homeowners on their primary residence in Texas. It lowers the taxable amount of your home by exempting a portion of the value, giving homeowners the chance to save about 10% on their property taxes. So, if your home is valued at $350K, $25K will be exempted taking the taxable value of your home down to $325K. As you can imagine, this exemption can add up to big bucks.

2022 Homestead Exemption Update

This year, there is some big news on the homestead exemption front. First off, a new law was put into effect that as of January 1, 2022, Texas homeowners can be granted their homestead exemption as soon as they close on a new residence and update their driver’s license to reflect the new primary residence location. In addition, a new item on a May 7, 2022 ballot will be up for a vote. Texas voters will determine if the state will increase the homestead exemption for school districts from $25,000 to $40,000 starting in the 2022 tax year. If this new law passes, the state will make up the difference in revenue for school districts which could end up saving homeowners more money. Learn more about how to apply for a homestead exemption.

Need help understanding your homestead exemption application or property taxes? We can help. The Lippincott Team are top buying, selling, and leasing agents serving the Greater Houston communities of Cypress, Spring, Katy, Tomball, Waller/Hockley, Montgomery, The Woodlands, and the inner Houston loop. Call The Lippincott Team at 713-494-1818 or check us out on social media!