Homestead Exemption Frequently Asked Questions
It’s Homestead Exemption time. For those of you who made primary home purchase in 2014 or moved your homestead in 2014? Don’t wait! It’s time to reap the tax benefits for your new home.
What is a general homestead exemption?
According to the Travis County Appraisal District: The general homestead exemption is provided by state law for owner-occupied residential properties. The exemption removes a portion of your value from taxation providing a lower tax amount for the homestead property.
In other words, they help reduce property taxes for all homeowners by sheltering a certain amount of a home’s value from tax. It was designed to protect the value of a homes of residents from property taxes, creditors, and circumstances arising from the death of a homeowner spouse.
Ever wonder how the exemption was created?
It is a state constitutional law that dates back to 1839 due to home foreclosures caused by the great depression in 1837. According to the Texas State Historical Association, these exemptions have two key components: a special protection given to the home of a family or a single adult from the owner’s creditors, and favorable tax exemption came about separately to create the law as we know it today.
Is that all?
Also, there a host of other exemptions for which you may qualify like over 65 or if you have disabilities. Check out both Travis and Williamson counties below or google your county’s central appraisal district.
If you have any questions or need additional information, contact me now.