The Benefits of a Homestead Tax Exemption 

The Benefits of a Homestead Tax Exemption 

If you are buying a home, you may have heard of the homestead tax exemption. This is an important form of property tax relief that can help reduce your tax liability and save you money. But what exactly is a homestead tax exemption? Let’s take a closer look at this valuable benefit. 

What Is It? 
The homestead tax exemption is a property tax reduction program that helps qualified homeowners pay their property taxes. Depending on the state in which you live, the exemption can range from hundreds to thousands of dollars per year. In some states, the savings are applied directly to your property taxes; in others, it might be credited against your total taxable amount or used to reduce your assessed value. In texas a home that is homesteaded can only have the total taxable appraised value go up by 10% per year this can keep your taxes significantly lower in an appreciating real estate market. 

Who Qualifies? 
To qualify for this program, you must be a homeowner who uses the house as his or her primary residence. Your eligibility will vary by state but many states offer exemptions for disabled veterans, elderly citizens, and low-income households as well.     

How Do I Apply?               
The application process varies from state to state but typically requires filing an application with your local county assessor’s office. In Texas we can now do this anytime through the year. You will need to provide documentation proving proof of ownership and residency. Once the homestead tax exemption is applied it will stay with the proeprty until you switch it to a new property when you move. 

A homestead tax exemption can be an invaluable resource for homeowners looking for ways to lower their overall tax burden each year. By reducing your taxable amount or assessed value by hundreds or even thousands of dollars per year, these exemptions can help make owning a home much more affordable.