Homestead Exemptions: The key to Savings

The general homestead exemption mandated for Texas school districts is $40,000. If your house is appraised at $200,000, you’ll only pay taxes on the home as if it was worth $160,000.

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Since I live in Texas, I’ll address homestead exemptions specifically for our state and my area in particular. Contact your local appraisal district for more information.

I’ve been helping first time home buyers for years, and I always remind them (and my more seasoned clients, too!) to apply for their homestead exemption after closing. There are 4 different types of exemptions, and I’m typically encouraging buyers to apply for the General Residence Homestead Exemption. The other types of exemptions are Disabled Person, Person Age 65 or Older and 100 Percent Disabled Veteran. I’ll show you the steps for the General Residence exemption since that’s the most common exemption, but before I do that I need to answer a question: What is a homestead exemption?

Homestead exemptions remove part of your home’s value from taxation, so they lower your property taxes. Who doesn’t want that? The general homestead exemption mandated for Texas school districts is $40,000. If your house is appraised at $200,000, you’ll only pay taxes on the home as if it was worth $160,000. Not all homes qualify for the exemption, so you’ll have to meet certain criteria before the benefit kicks in.

General Residence Homestead Exemption Requirements

• You must own the property in the year you are applying for the exemption.
• The property must be used as your primary residence.
• The address of the property must match the address listed on your driver’s license. 

Easy enough, right? Right! I’ll walk you through the online process for filing an exemption in Lubbock County, and if you’re looking for the link to your appraisal district you can scroll through this list.

1. Enter the address of the property you are applying for an exemption.
2. Click on the HS Exemption Link on the property page.

3. A partially completed exemption form will appear, fill in all of the applicable missing information.

4. Once you're finished, click Sign & Submit. You should receive a confirmation message that your application was received.

For more information and a really helpful FAQ page, go to the Texas Comptroller’s Site or simply send me a message!