A majority of Texans, all agree on the fact that property taxes are just shooting through the roof! Sure, there are viable tax relief programs in the pipeline, but they all seem to be uncertain. However, there are certain types of tax exemptions that Texans can qualify for to reduce the overall cost of their property taxes.
In Texas, taxes on the property are administered locally, and they are also assessed locally. The taxes collected all different fund aspect of the state, such as schools, the infrastructure, firefighters, police, parks, and a variety of other services offered by the local government. In addition, the provincial government does provide exemptions on property taxes for a specific category of homeowners.
And though there are different types of exemptions (not applicable for all), there is one unique exemption that is far greater than them all.
The Texas Homestead Tax Exemption
Homestead exemption Tarrant County takes out a particular portion of the total value of your home from taxation, in turn reducing your property taxes. For instance, if your house has been appraised at $192,400 (which is the average cost of a home in Dallas), you will be able to legally qualify for a homestead tax exemption. This means you will be able to take off up to $25,000 from this amount.
In Texas, there are two different ways you can qualify your home for tax exemption. First of all, you need to own a house. Second, the house you purchase has to be the primary place of your residence every January. This is the month where the local administration evaluates and assesses yearly property taxes.
How to file for homestead tax exemption
Filing for your homestead tax exemption is free, and all you have to do is fill the form on your own. The benefits may include up to $230 to $250 in tax savings per annum. In addition, you can also effectively prevent the assessed value on your home from increasing by more than 10% every year.
Keep in mind that you can only file for your homestead tax exemptions between the 1st of January and the 30th of April for the year you are applying for your tax exemptions. You can go to tad.org and download the Homestead exemption form.
Also, it is vital that you must a) own the house for which you are filing for exemption, and b) the property must be your primary place of residence on the 1st of January of the year of application.