Happy New Year! I hope you had a great start to 2023 despite the challenges that the past year has presented. In the Real Estate industry, we were on quite the roller coaster as home sales started to cool following the rate hikes by the Fed. Many people were still able to find a great home that fell within their budgets and towards the end of the year even be able to negotiate the sales prices down a tad. If you’re one of those people, now is the time to apply for your homestead exemption.
What is a homestead exemption?
But what is a homestead exemption and how does it benefit you? Essentially, it removes a portion of your home’s value from taxation, which means lower taxes for you. For example, if the county appraises your home at $125,000 and you qualify for a $25,000 exemption (the amount mandated for school districts), you will only pay school taxes on the home as if it were worth $100,000. This can lead to a reduction in your monthly mortgage payment and more money in your pocket.
What qualifies as a homestead?
So, what qualifies as a homestead? Any structure (including a condominium or manufactured home) that is owned by the person living in it and located on land that is either owned or leased can be considered a homestead. The homestead can also include up to 20 acres of land if it is owned by the homeowner and used for residential purposes. Simply put, you can apply for homestead exemptions on your primary residence.
How to apply for a homestead exemption
To apply for a homestead exemption, you can use this form: Application for Residential Homestead Exemption (PDF). Submit it to your appraisal district by April 30th to take advantage of the $25,000 homestead exemption. If you receive the exemption, you don’t have to apply again unless the chief appraiser sends you a new application.
Frequently asked questions about homestead exemptions
For more answers to frequently asked questions, visit the comptroller’s website here: https://comptroller.texas.gov/taxes/property-tax/exemptions/residence-faq.php
If you haven’t yet purchased your dream home but hope to do so in 2023, please don’t hesitate to reply to this email or text me at 903-806-6905. Let’s schedule an appointment and come up with a plan to get you from where you are now to where you want to be.