File Your Homestead Exemption

If you purchased a home in Texas in 2023, it’s time to file your homestead exemption.  This exemption is for your primary residence, not a second home or investment property.  It’s got two key benefits.  First, some, but not all, taxing entities will lower your taxable value.  For example, state law requires school districts to give a $100,000 reduction so if your house is appraised by the appraisal district at $500k, the school district taxes on a value of $400.  The other main advantage is the 10% cap.  Once you have a homestead exemption in place, your year-over-year increase in taxable value will not rise more than 10%.  That’s not as important now that values have stopped rising quickly, but you never know when that will be beneficial again.  Buyers who bought a home last year that didn’t already have a homestead exemption in place could have filed for it then, but if you didn’t, you can file it now.  To file your exemption, get on your appraisal district website and follow the directions. 

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