Have you ever heard someone talk about a financial topic and not know what they’re saying? We sure have, and it’s nothing to be embarrassed about. There are just some things no one ever taught us when it comes to our money.
This is the first post in a series we hope will give you the information you need to navigate the world of finances. Our first topic is the Texas Homestead Exemption.
Q: What is the Texas Homestead Exemption?
A: It’s a tax exemption automatically reducing your home’s value by $40,000, which means you owe taxes on the lower property value. If you’re disabled or older than 65, there’s an additional $10,000 reduction too.
Example of savings:
• If your home is valued at $200,000 and your tax rate is 1.940%, your annual property taxes would be $3880.
• With a homestead exemption, your annual property taxes would be $3,104.
• That’s a savings of $776 a year or about $64 a month for people under age 65 who are not disabled. If your home is valued higher, the exemption is saving you even more.
Q: Is it hard to get?
A: Not at all! You only have to own and inhabit your Texas home to qualify for the exemption.
Q: What’s the application process like?
A: It’s pretty easy. The preferred application deadline is April 30, but you can still file an application after that. When applying, you’ll need:
• To know your appraisal district (the government office valuing your home and granting Homestead Exemptions).
• A driver’s license showing your current home address.
• A completed application submitted online.
We care about empowering you to make the best financial decisions, and we hope you’ll use the Homestead Exemption to save thousands of dollars.
