I recently received an email from Jo Anne Johnson a local real estate agent highlighting the benefits and the importance of filing a homestead exemption. Here are some key points I wanted to share as she answers the important questions about homestead exemptions. Make sure you check your local appraisal district website for filing dates and other important information that could impact your taxes!
What is a Homestead Exemption?
The homestead exemption is a legal regime to protect the value of the homes of residents from property taxes, creditors, and circumstances that arise from the death of the homeowner spouse.
General Residential Homestead Exemption
Application must be made to receive this exemption. The applicant must own and occupy the residence on January 1 of the year for which they are making application. Every school district is required to exempt up to $25,000 of the assessed value. Other taxing jurisdiction may, at their option, grant a percentage homestead exemption up to and including 20%. An owner qualifying for a general homestead exemption may qualify for multiple exemptions.
A homestead exemption provides 2 major benefits:
- It reduces your property taxes
- It places a 10% cap on potential increases in the appraised value of your home
A person cannot have both the disabled person exemption and the over-65 exemption. The over-65 exemption is more advantageous because more entities grant the over-65 and in some cases where the entity grants both exemptions, the over-65 is a higher amount.
When do you need to file?
January 1st – April 30th
For More Information About Jo Anne Johnson and her real estate services please contact her direct!