The Texas homestead exemption laws for 2024 saw some significant changes thanks to Proposition 4, passed by voters in November 2023. Here’s a summary of the key points:
Increased Homestead Exemption:
- The exemption amount on school district taxes more than doubled from $40,000 to $100,000. This means a larger portion of your home’s value won’t be taxed for school funding, leading to potential savings.
- Seniors (65+) and disabled individuals can still claim an additional $10,000 exemption, bringing their total exemption to $110,000.
- No application is needed for existing homesteads, the increased exemption will be automatically applied to your 2023 tax bill (due January 2024).
Additional Property Tax Relief:
- Appraisal cap for non-homestead properties: Commercial, mineral, and residential properties (excluding homesteads) valued under $5 million will have a 20% cap on their appraisal value increase each year for the next three years (2024-2026). This helps limit property tax hikes for businesses and certain investment properties.
- School district tax rate compression: Some of the revenue lost from the increased homestead exemption will be replaced by state sales tax revenue, potentially leading to lower school district property tax rates.
Other Changes:
- Homestead verification every five years: Starting in 2024, some homeowners may be required to verify their eligibility for the homestead exemption every five years. You’ll receive a notice from your local appraisal district if this applies to you.
Here are some helpful resources for further information:
- Texas Comptroller of Public Accounts: https://comptroller.texas.gov/taxes/property-tax/
- Your local county appraisal district website: You can find your district’s website by searching for “[your county] appraisal district.”
I hope this summary is helpful! Please let me know if you have any other questions about the Texas homestead exemption laws.
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