Amidst all the excitement of signing the papers, moving in and unpacking you may have missed information regarding the homestead tax exemption. What is it and how does it benefit you as a new homeowner? We’ve put together a guide on everything you need to know:
What is the Homestead Tax Exemption?
A homestead exemption lowers your taxes by deducting a portion of your home’s value from taxation. For example, say you recently bought a home appraised at $400,000, and you qualify for a $25,000 exemption, you will pay taxes on the home as if it was worth only $375,000.
Who Qualifies?
You must meet the following criteria to qualify for the homestead exemption in the state of Texas:
- You own your home as of January 1 of the tax year.
- You must reside in the home as your primary residence.
- You are an individual homeowner, not a corporation or business entity.
- You did not claim any other property for homestead exemption in the same tax year.
