So here is a breakdown of what homestead exemptions are and what benefits they provide to homeowners in Texas.
A homestead is considered a separate structure, condominium or a manufactured home located on owned or leased land, as long as the individual living in the home owns it. It can include up to 20 acres if the land is owned by the homeowner and used for a purpose related to the residential use of the homestead.
You can apply for an exemption on your principal residence. Homestead exemptions remove part of your home's value from taxation, so they lower your taxes!
Example: Your home is appraised at $100,000 and you qualify for a $15,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $85,000. Taxing units have the option to offer a separate exemption of up to 20 percent of the total value.
To qualify, a home must meet the definition of a residence homestead: The home's owner must be an individual, not a business entity or trust, etc. and use the home as his or her principal residence on January 1 of the tax year.
There are several types of exemptions you may receive:
School taxes: All residence homestead owners may receive a $15,000 homestead exemption from their home's value for school taxes.
County taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead owner may receive a $3,000 exemption for this tax. If the county grants an optional exemption for homeowners age 65 or older or disabled, the owners will receive only the local-option exemption.
Age 65 or older and disabled exemptions: Individuals 65 and older and/or disabled residence homestead owners may qualify for a $10,000 homestead exemption for school taxes, in addition to the $15,000 exemption for all homeowners. If the owner qualifies for both the $10,000 exemption for 65 and older homeowners and the $10,000 exemption for disabled homeowners, the owner must choose one or the other for school taxes. The owner cannot receive both exemptions.
Optional percentage exemptions: Any taxing unit-including a city, county, school, or special district-may offer an exemption of up to 20 percent of a home's value. But, no matter what the percentage is, the amount of an optional exemption cannot be less than $5,000. Each taxing unit decides if it will offer the exemption and at what percentage. This percentage exemption is added to any other home exemption for which an owner qualifies. The taxing unit must decide before July 1 of the tax year to offer this exemption.
Optional 65 or older or disabled exemptions: Any taxing unit may offer an additional exemption amount of at least $3,000 for taxpayers age 65 or older and/or disabled.
You may file for any homestead exemption up to one year after the delinquency date. The delinquency date is normally February 1st. If you are 65 or older or disabled, you qualify for the exemption on the date you become 65 or become disabled. To receive the exemption for that year, 65 or older or disabled homeowners must apply for the exemption no later than one year from the date you qualify or one year after the delinquency date, whichever is later. If you miss the deadline you may apply for the following year.
This is a ton of information on home exemptions. If you realize that you haven't filed for your exemption yet go to your county appraisal office and GET ON IT! You will have to fill out an application and bring your driver's license and vehicle registration receipt to prove that the home is your principle residence. A link to the exemption forms for the Dallas County Appraisal District is below:
If you are trying to file for a past exemption in Dallas county you can go to their main office at
Dallas Central Appraisal District
2949 N. Stemmons Frwy
Dallas, TX 75247
Happy Savings!
Bina S Beechum
