What is a Homestead Exemption and How Can You Benefit?
A homestead exemption is a legal provision that can help homeowners save on their property taxes. If you’re new to homeownership, here’s what you need to know about this valuable tax benefit.
What is a Homestead Exemption?
A homestead exemption reduces the taxable value of your primary residence, which lowers the amount of property taxes you owe. This can result in significant savings, especially for first-time homeowners in Texas.
Who Qualifies for a Homestead Exemption?
To qualify, the home must be your primary residence as of January 1 of the tax year, and you cannot claim a homestead exemption on another property. You must file an application with your local county appraisal district by the deadline, typically around April 30th.
Benefits of a Homestead Exemption
- Lower Property Taxes: By reducing your home’s taxable value, you’ll pay less in property taxes each year.
- Legal Protections: In some cases, the exemption can also protect a portion of your home’s value from creditors in the event of bankruptcy.
At Oracle City Homes, we help our buyers understand the financial benefits of homeownership, including how to apply for a homestead exemption and save on property taxes.