Happy New TAX Year! 🤣

{JK} LOL … Are you receiving all your tax statements in the mail like I am?

⏰A quick reminder here: IF you purchased your home in 2019 AND it’s not an investment property, then you are eligible for the Texas Homestead Exemption.

The Homestead Exemption is an exemption you qualify for it you own the home you live in. You can not have this exemption on rental property or more than one property.

How This Exemption Works.

Every year in April our taxing jurisdictions update the taxable value on our homes. This post is not about protesting that value if you disagree with it, look for this post if you are interested in protesting your home’s taxable value.

So our annual property tax bills are made up of a few factors.

• The taxable value of our property
• The tax rates from all applicable taxing jurisdictions and
• Any exemptions we qualify for and have attached to our property.

You can see all possible exemptions at your county’s tax website. Here are links to a few of our largest local ones.

• http://dallascad.org/
• https://www.collincad.org/
• https://www.dentoncad.com/
• http://www.rockwallcad.com/
• https://www.tad.org/

So early every year your county puts a “taxable value” on your property, then later in the year all city, school and county tax rates are updated and applied to each property.

If your property has any exemptions, including the Homestead Exemption, the exemption value, which can differ from county to county,  is deducted from the taxable value, before the tax rates are applied to come up with your annual property tax bill.

When you have filed your homestead exemption on the property in which you live with the taxing jurisdiction your annual tax bill will be lower than it would have been without the exemption.

If you qualify for the exemption (see qualifications above), the actual filing of the exemption is easy and FREE.

👍🏻Bonus Tip: You only have to apply once and the Homestead Exemption will stay with your property, year after year until you move! 🙌🏻

To be eligible to apply you must have been the Owner of Record as of January 1st. So if you purchased your home anytime last year, since it’s past January 1st of this year…Good News – you qualify!

To Apply: Just go to one of the websites above or check out the blank application here. You will need an updated photo ID with the new address on it that matches the property address you are filing homestead on.

Filing your homestead exemption will reduce your annual property tax bill and who’s not for paying fewer taxes?!?!