A property tax exemption is one of the most meaningful way to reduce your property tax. It is granted by the county appraisal district where the property is located. The exemption reduces a homeowner’s property tax bill by removing part of the home’s value from taxation. In Texas, homeowners may receive a General Residence Homestead Exemption of $25,000 on the value of their property for school taxes. Other taxing entities may also offer exemptions of
some percentage of the home’s value. Other exemptions are available to homeowners who are over 65 or disabled, and require the same application process.
How do I know if I qualify for a homestead exemption?
These requirements must be met to receive the exemption:
1. You must reside at the home as your principal residence on January 1st of that year, and not claim any other property as homestead.
2. You must own your home on January 1st of the year for which you are applying. If you are over 65 and/or disabled, January 1st ownership and residency are not required.
3. Only individual homeowners (not corporations or other entities) may receive a homestead exemption.
4. A homestead can be a house, a condominium, or a manufactured home. It can include up to 20 acres, if the land is also owned by the homeowner and used as a yard, or for another purpose related to the residential use of the home.
5. You must apply between January 1st and April 30th of the year for which you want the exemption.
How do I get a homestead exemption?
1. Complete the Application for Residential Homestead Exemption, which is available on the websites of most county appraisal districts, or at the Texas Comptroller’s website at: http://comptroller.texas.gov/taxinfo/taxforms/50-114.pdf)
2. Include a copy of your Driver’s License or ID from the Texas
Department of Public Safety at www.txdps.state.tx.us. The address MUST MATCH the homestead address.
How do I apply for the homestead exemption?
Your county appraisal district will automatically send a form to all new property owners around the end of January. You have until April 30th of the same year to file for the exemption. Most counties have the exemption forms on their website or you can call them for additional info.
Property exemption is one of many benefits of owning a home. If you are currently renting and would like to purchase a home in Dallas Fort Worth but don't know where to begin, call me at 469-371-2899. I'd be happy to discuss with you and guide you on your home buying process.