What is a Homestead Exemption

If you bought a home in 2016, you might be wondering “what is a homestead exemption?” Well, the homestead exemption allows you to save money on your property taxes by reducing the taxable value of your home. The exemption in Harris County is 20% for homes that qualify as a homestead! This means if your home is worth $200,000, after a 20% exemption, the taxable value of your home is reduced by $40,000. The tax assessment will be based off an adjusted value of $160,000! That can mean big savings.  There are other homestead exemption benefits too!

• A homestead cap which limits the increase in appraised value of your home
• A minimum of a $15,000 exemption for school district taxes
• Up to a 20% deduction from other taxing units such as school districts, counties, cities or special districts. This deduction is subject to policies implemented by each organization.
• Over 65 exemptions
• Veteran exemptions
• Disability exemptions

Applying for your homestead exemption is easy! Although, you must complete the application by April 31st, 2017 to be eligible. Otherwise, you have to wait until next year. Follow these easy steps:

1. Make sure your purchase is registered with the appraisal district. Typically, this is handled by the title company when you close; so, you probably don’t need to do anything. To verify, check the records in Harris County by visiting https://www.hcad.org.
2. Update your Texas drivers license to reflect your new home address. This can be easily done online for $11 at https://www.txdps.state.tx.us/DriverLicense/.
3. Update your vehicle registration. This is another item you can do online at https://rts.texasonline.state.tx.us/NASApp/txdotrts/AddressChangeServlet.
4. Complete the application in person at your appraisal district, or print the form online.

• Harris County Application
• Montgomery County Application

If you are unsure if your home qualifies for a homestead exemption, or need assistance with the application process, please reach out to me, your lender or your escrow agent. We’re all happy to help!