Texas Homestead Exemption
As the Holidays roll around and we are all thinking of ways to save a little cash-flow, the Texas Homestead Exemption is a great place to start. If you are not familiar with the Homestead Act, two questions generally come to mind:
1) WHAT is it??
2) How do I get it??
The Homestead Exemption is a $15,000 exemption on the SCHOOL TAXES of a home (though there ARE other exemptions available you may qualify for (such as the 65 and Older Homestead Exemption, Disability Exemption, and the Disabled Veterans Exemption). How does the Homestead Exemption Work? Example: You have a $100,000 home and you qualify for the exemption…you will only pay taxes on $85,000 of the value of your home. Keep in mind that this only applies to a homeowners principal residence and NOT an investment property. (Again, the individual living in the home MUST own the property).
Getting the exemption is as easy as filling out the application for the Residential Homestead Exemption and qualifying. You may file this exemption up to ONE year after the taxes on the property are due (that is…after the delinquency date, Feb. 1st). Also, if your birth date was on your homestead exemption form for the previous year and you turned 65, you will get the “Over 65 Homestead Exemption” automatically, without even applying.
If you HAVEN’T filed for the Homestead Exemption and find yourself with past-due taxes, there ARE lending institutions specifically for this purpose. Loans are available for almost any type of real-estate, as long as the borrower is not in bankruptcy and the property is reasonably maintained. Qualifications are easy (as long as the past-due taxes are over $3,000) and credit-score is typically not a factor.
Feel free to pass this information on to someone else who could benefit from taking 5 minutes to complete the Texas Homestead Exemption form.
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