TEXAS PROPERTY TAXES
Property Taxes in Texas are set out by provisions found in the Texas Constitution and Tax Code. If you are a home/property owner, your tax amount is based upon the market value of your property as of January 1 of the current year and will be reevaluated at least every three years. This value is determined by your local Central Appraisal District (CAD). Through this process, they will evaluate the property, review exemption applications and maintain ownership information on the appraisal records. If there is a dispute on the value of the property that cannot be resolved between the appraisal district and the property owner, a neutral third-party review board made up of local community members will work to settle the disagreement in a formalized hearing.
The tax authorities in-conjunction with local officials will then set an annual budget and in turn, set the tax rate for each taxing entity.
The tax office then calculates the amount each property owner must pay based on the property’s established value from the appraisal district and the stated tax rate.
THE RESIDENCE HOMESTEAD EXEMPTION
Like mentioned above, there are possible exemptions that can reduce the property owner’s taxes. There are several tax exemptions available that a property owner may qualify for in Texas, but one of the most commonly applied is the Homestead Exemption. This particular exemption lowers your property taxes by removing a portion of your home’s value from taxation.
Texas law requires school districts to offer a $25,000 exemption on residence homesteads. Any taxing unit, including a city, county, school district or special district, has the option of deciding locally to offer a separate residence homestead exemption of up to 20 percent of a property’s appraised value, but not less than $5,000. Counties are also required to offer a $3,000 exemption if the county collects farm-to-market roads or flood control taxes.
Now the amount can vary, but for example, a home appraised at $200,000 that has a $25,000 homestead exemption on their school taxes will only be taxed on the difference of $175,000 from that entity.
Just note that when you are requesting a homestead exemption on your home, the property must be owned and occupied as your primary residence and be listed on your driver’s license.
Filing an application for a homestead exemption is free through your CAD and must be done between January 1 and April 30. Once you have qualified for a homestead exemption, you need not reapply unless you are contacted by your appraisal district, you move, or circumstances change that qualify you for a change in exemption.
There are other exemptions available, like the Over 65 Exemption or the Disabled Veteran Exemption among others, but note, that all exemptions are subject to the rules and regulations of your county’s central appraisal district office. Please contact them for more information.
IMPORTANT: If you receive mail or any type of communication requesting money to file for a Homestead Tax Exemption, know that applying is as simple as filling out the necessary document provided from the County Appraisal District. THERE IS NO FEE ASSOCIATED WITH APPLYING FOR HOMESTEAD. If you have any questions or concerns please contact your local Appraisal District.
The information provided is given as a resource and is deemed reliable but not guaranteed. If you have any questions or need assistance, please contact your local county appraisal district or consult an attorney.
