Homestead Exemptions and What You Need to Know
It’s almost that time of year… AGAIN! Tax Season is quickly approaching, and if you bought a home in 2017, you may be eligible for a homestead exemption.
You Qualify for a Homestead Exemption If…
- You’re an individual (not a business entity or corporation).
- You bought a home in 2017.
- The home is your primary residence on January 1st of the tax year.
What is a Homestead?
A homestead can be a separate structure, condo or a mobile home located on owned or leased land, as long as the individual living in the home owns it. Homesteads may 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.
What is a Homestead Exemption?
Homestead exemptions remove part of your home’s value from taxation, so your taxes are lowered. If your home is appraised at $100,000 and you qualify for $25,000 exemption (the amount designated for school districts) you will pay school taxes as if your home’s value was worth $75,000.
What Homestead Exemptions are Available?
- School Taxes. All residence homestead owners are eligible for a $25,000 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 is eligible to receive a $3,000 exemption. 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 age 65 + or disabled residence homestead owners qualify for a $10,000 homestead exemption for school taxes. This is in addition to the $25,000 exemption for all homeowners. If the owner qualifies for both the $10,000 exemption for age 65 + 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. 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 that the owner might qualify for. The taxing unit must decide before July 1 of the tax year to offer this exemption.
- Optional age 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.
How Do I File for the General $25,000 Homestead Exemption?
You may file an Application for Residential Homestead Exemption (PDF) with your appraisal district for the $25,000 homestead exemption up to two years after the taxes on the homestead are due. Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualification ends, you must inform the appraisal district in writing before the next May 1st. A list of appraisal district addresses and phone numbers is available online.
What is the Deadline for Filing a Homestead Exemption?
