It’s that time of year, tax time! Not everyone is aware of what the Homestead Tax Exemption is and how to go about the process of filing. Read the tips below to see if you qualify!
What is Homestead Tax Exemption?
- Potentially reduces the amount of property taxes owed on the property.
- Exemption may extend to the home and up to 20 acres of land used for a purpose related to the residential use of the homestead.
- Different taxing entities give different exemptions, depending upon the type of taxing entity and location.
How Does the Homestead Exemption Work?
For example, if your home is appraised at $135,000, and you qualify for a $15,000 exemption, you will pay taxes on the house as if it was worth only $120,000.
What Type of Property Qualifies For This Exemption?
Your primary residence is the only property that qualifies for a Homestead Exemption. This means the owner of the home must live at the house as of January 1st of the tax year and be an individual (not a corporation or business entity).
What Items Do I Need to Have to Apply For This Exemption?
You will need your Texas driver’s license or state ID card and your vehicle registration receipt.
What form do I need to complete?
You’ll need to file an Application for Residential Homestead Exemption with the county appraisal district. (See a list of counties below.) If you are a new homeowner, your appraisal district should send you a form, usually by the end of January.
4 Steps to Apply for Homestead Exemption:
- Download the application form from your appraisal district’s website–it is free to apply! Note: You must occupy the property by January 1, 2020 to apply.
- Complete the form and attach copies of your Driver’s License. Note: The address listed on your Driver’s License must match the address of the homestead. Check with your local tax appraisal district for further information and requirements before submission.
- Return the form to the Appraisal District by April 30, 2020.
- The homestead exemption will remain in place as long as the owners occupy the property as their homestead. If the owners sell the property or no longer occupy the homestead, they should request a removal of the exemption. Failure to do so may result in the assessment of penalties and interest on the portion of taxes that should not have been exempted.
Your form must be filed between January 1st and April 30th of the tax year.
Download your Texas Homestead application at:
Collin County- collincad.org
Dallas County- dallascad.org
This information is provided as a courtesy and does not cover homestead exemption in its entirety. Please contact your local tax appraisal district for further information.