Homestead Exemption in Central Texas

Filing for a homestead exemption is one of the easiest ways for home owners to save a little money on annual property taxes.  There is only one simple criteria to qualify for this tax exemption – you must claim the home as your primary residence.  You or your spouse cannot claim more than one exemption on another property in or outside of the state of Texas.  Filing for the exemption is easy.  Do not pay for this service (unless one of your hobbies includes lighting your fire place with dollar bills).

Fill out this homestead exemption application and drop it by your local appraisal district.

So what can you actually save by doing this?  In our example, we’ll calculate property taxes on a $200,000 home with and without a $15,000 exemption.

Without Homestead Exemption:
Property value – $200,000
Property tax rate – 2.5%
Property taxes – $5,000 annually

With Homestead Exemption:
Property value – $200,000
Exemption value – $15,000
Taxable property value – $185,000
Property tax rate – 2.5%
Property taxes – $4,625 annually

Savings = $375/year (for doing close to nothing)

Other tax exemptions:

Age 65 or Older or Disabled Persons
Requirements:

  • owner must be 65 or older (surviving spouse must be 55 or older at time of death)
  • disabled person must meet the definition of disabled for the purpose of receiving disability insurance benefits under the Federal Old-Age, Survivors and Disability Insurance Act

This exemption value can be an additional $10,000.  Taking our above example, the savings can be upped to $625/year.

Veterans
Requirements:

  • veteran who was disabled while serving in the U.S. armed forces or surviving spouse

Exemption values for disabled veterans vary depending on the disability rating of the veteran:

Disability Exemption
Disability Rating Exemption Amount Up To
10% to 29% $5,000 from the property’s value
30% to 49% $7,500 from the property’s value
50% to 69% $10,000 from the property’s value
70% to 100% $12,000 from the property’s value

These values can further give homeowners savings on their property taxes each year you qualify and you do not need to re-apply each year.

Have more questions regarding residence homestead exemption, 65 or older exemption, or veteran exemption?  Visit the Texas website here or contact me directly.

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