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Texas Homestead Tax Exemption Tips For 2020

Do you know what a Homestead Exemption is?

It’s a way to save money every year on your property taxes!

 It allows homeowners to exempt a portion of their property value from county taxes.

Check out the info graphic for more details or the article with more extensive information on the topic.

Texas offers a variety of partial or total exemptions from property appraised values used to determine local property taxes. A partial exemption removes a percentage or a fixed dollar amount of a property’s value from taxation.

The law requires the property owner to apply for an exemption, in most circumstances.

Homestead Exemption Requirements 

You must be in the home by January 1 of that tax year.

The deadline is May 1 to apply.

The home must be your primary residence.

Additional Exemptions

Texas law requires school districts to offer a $25,000 exemption on residence homesteads.

Any taxing unit, including a city, county, school district or special district, has the option of deciding locally to offer a separate residence homestead exemption of up to 20 percent of a property’s appraised value, but not less than $5,000.

Counties are also required to offer a $3,000 exemption if the county collects farm-to-market roads or flood control taxes.

Texas law requires school districts to offer an additional $10,000 residence homestead exemption to persons age 65 or older or disabled. The Tax Code places a ceiling on school taxes for residence homesteads owned by persons who are age 65 and older or disabled. These homeowners may also transfer the percent of tax paid, based on their ceiling, when they purchase another home and use it as their principal residence.

If you are a disabled Veteran, you may be able to exempt 100% of your homes value from property taxes.

An additional benefit of the general homestead exemption, especially in an appreciating housing market, is the homestead cap, or limitation on increases in appraised value. The cap applies to your homestead beginning in the second year you have a homestead exemption. The cap law provides that if you qualify, the value on which your taxes will be calculated (called your appraised value) cannot exceed the lesser of:

This year’s market value;

or

Last year’s appraised value, plus 10%, plus the value added by any new improvements made during the preceding year.

If homes are appreciating at more than 10% per year, the cap can provide substantial tax savings.

Thanks for checking out the article!

I have provided easy links for more information on where to apply in Montgomery County, Texas.

Click for more information and PDF forms

If you need any additional assistance, please click the link below!

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Your High Performance Realtor,

Lisa

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