States do not impose a property tax. In Texas, property taxes are levied and managed locally. Unless the Texas Constitution specifies an exemption, all-natural and tangible personal property in the state of Texas is subject to taxation in accordance with its appraised worth. Texas law offers a range of property tax exemptions for those who meet specific requirements.
Local taxation units provide partial and complete exemptions from the assessed value of a qualifying property. A partial exemption shields a set percentage or sum of money from taxes on the value of a property. When a property has a 100% exemption, its whole value is not subject to taxes. The state permits taxing units to choose locally whether to grant additional mandatory exemptions, but it also requires them to provide some mandatory exemptions (local option).
In most cases, a property owner needs to apply for an exemption.
The county’s appraisal district is where applications for property tax exemptions are submitted when the property is situated. Generally speaking, applications for exemption must be submitted by May 1. The only people who can decide whether a piece of property qualifies for an exemption are the chief appraisers for the appraisal district.
Household Homestead
With a general residence homestead, you might potentially reduce your taxes by having a portion of the value of your residential homestead exempt from taxation. School districts must offer a $100,000 dwelling homestead exemption under Tax Code Section 11.13(b), and any taxing unit may adopt a local option residence homestead exemption of up to 20% of a property’s appraised value under Tax Code Section 11.13(n). There must be a local option exemption of less than $5,000. According to Tax Code Section 11.13(a), counties that levy flood control or farm-to-market taxes must offer residents a $3,000 homestead exemption.
You will pay school taxes on the home as if it were your own; for instance, if your property is valued at $300,000, you are eligible for a $100,000 exemption (amount required for school districts).
Residence Homestead Inheritance
Property held by one or more people claimed as a residence homestead by at least one owner and obtained through a will, transfer on death deed, or intestacy is known as their property. A copy of the previous property owner’s death certificate, the most recent utility bill for the property, an affidavit proving an ownership interest in the property, and a citation of any court records pertaining to the applicant’s ownership of the property, if available, are all required to be provided to the appraisal district by an heir property owner who is not explicitly named as the residence homestead owner on a deed or other recorded instrument in the county where the property is located.
Every heir who resides on the property as a primary residence, other than the applicant, must provide an affidavit that authorizes the submission of the application.
Older than 65 or disabled individuals
Tax Code Section 11.13(c) mandates that school districts grant an additional $10,000 dwelling homestead exemption to those who are disabled or 65 or older. Any taxing unit may adopt a local option residence homestead exemption under Tax Code Section 11.13(d). The exemption for local options can be at least $3,000.
The applicant must be 65 or older, hold an ownership stake in the property, and make the house their primary residence to be eligible for the homestead exemption for elderly residents. If a deceased spouse passes away in a year in which they were eligible for the exemption, the surviving spouse, if they are 55 years of age or older, may be eligible for their late spouse’s age 65 or older exemption.
Final Note
In addition to assisting, you with understanding property tax exemptions and other possible real estate deductions you might be eligible to claim during tax season, we can help you choose which form of loan is best for you.
