In the state of Texas, homestead exemptions can provide homeowners with significant property tax savings. Here is how homestead exemptions work in Texas:
What is a homestead exemption?
A homestead exemption is a legal provision that reduces the amount of property tax that homeowners have to pay on their primary residence. The exemption is applied to the value of the home, which can result in a significant reduction in the amount of property tax that homeowners have to pay.
Who is eligible for a homestead exemption in Texas?
In order to qualify for a homestead exemption in Texas, you must own and occupy the property as your primary residence as of January 1 of the tax year. You must also be a resident of Texas.
How much of a reduction will I receive with a homestead exemption?
The amount of the reduction that you will receive with a homestead exemption will depend on the value of your home and the specific exemptions that you qualify for. In Texas, homeowners may be eligible for a general homestead exemption of $25,000, as well as additional exemptions for disabled veterans and surviving spouses of disabled veterans.
For example, if you are a disabled veteran who is 100% disabled, you may be eligible for an exemption of up to $12,000 on your property taxes. This exemption can be applied in addition to the general homestead exemption of $25,000.
How do I apply for a homestead exemption in Texas?
To apply for a homestead exemption in Texas, you will need to submit an application to your county’s appraisal district. The application must be filed by April 30 in order to be eligible for the current tax year. You will need to provide documentation to prove that you meet the eligibility requirements, such as proof of ownership and occupancy of the property.
If you are a disabled veteran or surviving spouse of a disabled veteran, you may need to provide additional documentation to prove your eligibility for the exemption.
By taking advantage of homestead exemptions in Texas, homeowners can save significantly on their property taxes. If you are a homeowner in Texas, it is worth considering whether you are eligible for a homestead exemption and how it could potentially reduce your property tax burden.