A Texas homestead exemption is a tax break for homeowners who plan to use the residence as their primary home. It basically allows you to “write down” your property value, so you don’t get taxed as much.
The state tax code requires public school districts to offer a $40,000 exemption on “residence homesteads” located in their district.
The most common type of homestead exemption in Texas is the $40,000 reduction mentioned above, as found in section 11.13(b) of the state tax code.
“Homestead exemptions remove part of your home’s value from taxation, so they lower your taxes. For example, your home is appraised at $300,000, and you qualify for a $40,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $260,000,”according to the Texas Comptroller.
Prior to January 1, 2022, homestead exemptions could not be filed until the year after a home was purchased. As of 2022, homeowners may now file for a homestead exemption immediately upon closing on their home, so long as an exemption has not yet been filed for that tax year.
As long as you are using it as your primary residence (and not a second home or vacation home), you likely qualify.
According to the Texas Comptroller’s website:
“A homestead can be a separate structure, condominium or a manufactured home located on owned or leased land, as long as the individual living in the home owns it. A homestead can include up to 20 acres, if the land is owned by the homeowner and used for a purpose related to the residential use of the homestead.”
“The completed application and required documentation are due no later than April 30 of the tax year for which you are applying. A late residence homestead exemption application, however, may be filed up to two years after the delinquency date, which is usually Feb. 1,” according to the Texas Comptroller’s website.
County Appraisal Districts have been known to reach out and ask for sales price to gauge their property taxes. This is not required.
Texas is a nondisclosure state which means that we do not have to disclose the price we purchase properties for. Therefore, it is so important to not give the price away to Zillow, REALTOR.com, the review sites. It is private information.
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