What is the residential homestead?

Real Estate Agent 0538430

The homestead exemption in Texas allows you to receive a property tax deduction only on your principle residence in Texas. If a person has two or more properties in which they possess ownership interest in Texas, you will only be able to receive the homestead exemption on one of the properties. As it relates to tax savings, the homestead exemption will extend to the school district tax portion as well which could be significant. At times, I get the question on whether or not if someone co-sign a loan for another individual would they still qualify for the homestead? The awnser is "no" unless the co-signer agrees to forfeit their right to the residential homestead. The co-signer must keep in mind that they will need to make a choice on which property they decide to homestead because you can only homestead one of them. You must own the property Jan 1 of the year you are claiming the exemption.


Other Homestead Facts

in the city homestead must be less than 10 acres to qualify

Any creditor other than the mortgage holder, note holder or taxing authority will not be allowed to force you to sale your property to satisfy a debt.

So as you can see that the homestead gives you a little more than just a tax break.



Comments (2)

Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Melissa, Don't know if we have anything similar here in California..Thanks for sharing.

Jan 19, 2014 01:24 PM
Melissa Wilson
Houston, TX
Call Mel!

Hi there Ronald,

Well California taxes are already much lower than ours ( percentage). This is mainly because a significant portion of our state funding is derived from our property taxes. In California, you all have a state income tax which compensates. However, our state has several exemptions in place with the homestead being one that every homeowner is entitled to. We have others such as disability exemption, over 65 exemption etc. You should do some research in your state to see if there is something that allows protection against 3rd party claims.

Jan 19, 2014 02:01 PM