Texas Homestead Exemption: Why You Should Apply
A “homestead” is defined as an estate or a home with land or other buildings surrounding it. A popular example of this would be a farm as there is a farmhouse with other buildings, and land surrounding the farmhouse.
What is the Homestead Exemption?
The Homestead Exemption is a legal exception that is given by Texas law. The law states that all school districts must give you a $25,000 tax credit on your primary residence.
What Does That Mean For You?
What this means is that if your home’s assessed value is $100,000 you could receive up to $25,000 in tax credit. This also means that you would only have to pay tax for your home’s assessed value of $75,000 instead of the full $100,000. Another benefit is that local counties are not allowed to raise your home’s value more than 10% from the previous year. For instance, let’s say the housing market were to grow and your home’s value goes from $100,000 to $150,000. If you already filed for the Homestead Exemption for the tax year you will only pay taxes for the home value of $110,000, and not the full $150,000.
How Can You Apply for the Homestead Exemption?
To apply, go to your county’s appraisal district website, and find the form labeled 50-114, Application for Residence Homestead Application. You will need your state-issued identification card or driver’s license. It is important that the address on your identification card matches the address of the home that you are applying for. Additionally, applications can be filed as early as January 1st, but no later than April 30th of that tax year.
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If you have any questions, contact Jaidyn Stagner by phone at (806)999-0686, or by email at j.stagner@trustprogressive.com.
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