Texas homestead exemptions rules changed January 1, 2022. Overall, this is great news for home buyers (that qualify) as they no longer have to wait until the following year to apply for a general residence homestead exemption for their primary residence.
What is a homestead exemption?
Based on the Texas Comptroller’s website, “homestead exemptions remove part of your home’s value from taxation, so they lower your taxes”.
For example, if your home is appraised at $100,000, and you qualify for a $25,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $75,000. Taxing units including cities, etc. have the option to offer a separate exemption of up to 20 percent of the total value. Homestead exemptions are granted by the county appraisal district in which the property is located.
To qualify as a homestead, the property needs to be owned by an individual and used as his or her principal residence. Moreover, the property must have qualified as a residence on January 1st of the year for which you are applying. In other words, a new home under construction would not meet this standard and would qualify only in the following year. a Overall, homestead can be a house, condominium, or a manufactured home. Under certain circumstance, a homestead can include up to 20 acres. In Texas, individuals may only claim one property at a time as a homestead.
How to apply for a homestead exemption?
- Complete the Residence Homestead Exemption Application. This form is available through either your county’s appraisal district or from the Texas Comptroller’s website (Form 50-114).
- Attach required documentation including a Texas recognized and valid identification card or driver’s license. Please note that the address on the identification card needs to match the homestead address.
Resource: If you have additional questions, please feel free to reach out to Carlos Woltmann with Providence Title at (817) 723-4242.
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