What You Need to Know About Property Tax and the Texas Homestead Exemption

No one wants to pay more taxes than you have to. The good news is that the Texas Homestead Exemption allows homeowners to keep more of their hard earned money in their pockets, where it belongs. Other than exemptions for disabled veterans or survivors, the following applies only for your primary residence and not to any other property you own.

Claimed Property Tax Can Keep More Money in Your Pocket

Texas Homestead Exemptions exclude a portion of your home’s worth from taxation, thus lowering your neighborhood taxes. Here is what you need to know when filing this tax season.

The Home Must be Yours

In order to qualify for the Texas Homestead property tax exemption, the home must meet the definition of ‘residence homestead’ which means that the owner is not a corporation, and it must be used as the primary residence. If you are 65 or older, then different rules would apply and you would file under the ‘65 or disabled’ homestead exemption. If you own a percentage of a home then you will receive only a part of the qualified exemption.

The Home Must be Your Principal Residence

If you own multiple homes then you can only get an exemption on the one that is used as your primary residence on the 1st of January of the year you are filing. If you are temporarily relocated, you are still able to receive the property tax exemption on your primary residence, but you must be planning on returning. Even if you rent or use a portion of your house for business, then you still qualify for the Texas Homestead Exemption.

Application Deadlines

You should file your regular residential homestead exemption application between January 1 and April 30. Make sure your application is postmarked by April 30 to allow the district time to process it in time for your fall tax statement.

Save Where You Can

Property tax exemptions, are an excellent way to save more of the money that you earn. As a homeowner, don’t pass up this opportunity to take advantage of these benefits.

To learn more about property taxes in your neighborhood, or for help buying or selling a house, Contact Us.

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