States use the money they receive from taxes like sales tax, property tax, or income tax to fund schools, libraries, streets and other municipal needs, but Texas doesn’t have a state income tax. The property taxes in Texas are known to be high because of this, but the state does offer a tax break to homeowners. This tax break is called The Homestead Exemption.
The Homestead Exemption removes a portion of the value from your residence to lower your tax burden. In addition, it limits the increase of the approved value to 10% annually. It is important to note that this doesn’t change the actual value of your house; it only decreases the tax burden.
What is a homestead? Any separate structure, condo, or manufactured home on leased or owned land up to 20 acres is a homestead.
How do I qualify? You must have ownership interest in the property and actually live there. It must be your principal residence, and it must be the only place where you have applied for the homestead exception.
Are there other exemptions available? There are other exemptions for military vets, people with disabilities, people over 65 etc. Also, some counties may offer an additional tax break for homeowners.
How do I apply for the tax exemption? Go to the tax appraisal office for your county on-line or in-person and find the document. It’s easy to apply!
And the most important question, how much is the tax break? The general tax break allows a $25,000 deduction in the taxable value of your home. If your home is worth $100,000, you only pay taxes on $75,000 if you file for a homestead exemption.
