Owning a home is a huge financial responsibility, but it also has its rewards. One of the biggest benefits of homeownership is taking advantage of tax exemptions. Filing for tax exemptions can save you money and make your homeownership more rewarding in the long run. Here’s what you need to know about filing for tax exemptions as a homeowner.
What Are Tax Exemptions?
Tax exemptions are incentives given by government entities that allow homeowners to pay lower taxes on their property or not pay taxes at all. These exemptions are available on both state and local levels, so it’s important to research whether there are any applicable exemptions for your particular area.
Types of Tax Exemptions
There are several types of tax exemptions that may be available to homeowners. Some common examples include homestead exemption, veteran’s exemption, senior citizen exemption, disability exemption and agricultural exemption. This can be a flat dollar amount or a percentage of your overall income. The amount of the exemption varies depending on your circumstances, but in general it will reduce the amount of taxes due on your return.
How To Apply For An Exemption
Property tax in Texas is a locally assessed and locally administered tax. There is no state property tax. Property taxes pay for schools, roads, police and firemen, emergency response services, libraries, parks, and other services provided by local government. Texas state law provides for a variety of exemptions from property tax for property and property owners that qualify for the exemption. Local taxing units have the option to decide whether or not to offer additional exemptions under a local option.
As a homeowner in Texas, you are eligible to apply for a tax break from property taxes on your principal residence called a Homestead Exemption. Homestead Exemptions remove part of your home’s value from taxation, so they lower your taxes. Currently, the homestead exemption for school taxes is $25,000.
Age 65+ and Disabled Person’s Exemption
Age 65 or older and Disabled individuals qualify for an additional $10,000 homestead exemption for school taxes. If the owner qualifies for both the age 65 or older exemption and the disabled exemption, the owner must choose one or the other for school taxes.
The process for filing an application depends on the type and location of your residence. Generally speaking, applications must be filed with the county assessor in which your property is located. The general deadline for filing an exemption application is before May 1. Appraisal district chief appraisers are solely responsible for determining whether or not property qualifies for an exemption.
You may download an application online at:
Additional information on Local Options may be viewed at:
Filing for tax exemptions can be a great way to save money as a homeowner – but only if you know where to look and what steps to take! With careful planning and preparation, filing for tax exemptions could potentially put more money back in your pocket every year!
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