Hello and Happy New Year!!! Just wanted to share a quick home ownership tip with you about the Texas Homestead Exemption.
In Texas, you may apply for homestead exemptions on your principal residence. Homestead exemptions reduce your home’s value from assessed value, so they lower your taxes. To receive this exemption, you must meet certain criteria and complete required paperwork. The definition of a residence homestead is the home’s owner must be an individual (for example: not a corporation or other business entity) and use the home as his or her principal residence on January 1 of the tax year. If you are age 65 or older, or disabled, the January 1 ownership and residency are not required for the age 65 or disabled homestead exemption.
If you are qualified, what you need to do it to fill out the Homestead Exemption.
- Please go to your home local county Central Appraisal District website (CAD) and look for search property. (Please find the links below)
- Input your address or your name to find your property. Click on your property address and then you will be able to find the link to file your exemption. Complete the application, answering all of the questions.
- You can complete online or mail in your application or even bring it to your local appraisal district office. Please make sure the address on your Drive Licence is changed to your new home address.
*There are several types of exemptions you may receive.
- School taxes: All residence homestead owners are allowed a $25,000 homestead exemption from their home’s value for school taxes.
- County taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead is allowed to receive a $3,000 exemption for this tax. If the county grants an optional exemption for homeowners age 65 or older or disabled, the owners will receive only the local-option exemption.
- Age 65 or older and disabled exemptions: Individuals age 65 or older or disabled residence homestead owners qualify for a $10,000 homestead exemption for school taxes, in addition to the $25,000 exemption for all homeowners. If the owner qualifies for both the $10,000 exemption for age 65 or older homeowners and the $10,000 exemption for disabled homeowners, the owner must choose one or the other for school taxes. The owner cannot receive both exemptions.
- Optional percentage exemptions: Any taxing unit, including a city, county, school, or special district, may offer an exemption of up to 20 percent of a home’s value. But, no matter what the percentage is, the amount of an optional exemption cannot be less than $5,000. Each taxing unit decides if it will offer the exemption and at what percentage. This percentage exemption is added to any other home exemption for which an owner qualifies. The taxing unit must decide before July 1 of the tax year to offer this exemption.
- Optional age 65 or older or disabled exemptions: Any taxing unit may offer an additional exemption amount of at least $3,000 for taxpayers age 65 or older and/or disabled.
Be aware that there are many companies that will charge you a pretty penny to file the exemption for you. DO NOT PAY ANYONE TO FILE ANYTHING!! IT’S FREE!!
Please let me know if there is anything I can do for you. At the same time, you are welcome to forward it to all your friends!
Have a great 2019!! Looking forward to hearing from you soon!!