Happy New Year! With the new year, comes a very important part of home ownership… Filing for a Homestead Exemption. See below for frequently asked questions about what a homestead exemption is and how to apply.
What is a homestead? A homestead can be a separate structure, condominium or a manufactured home located on owned or leased land, as long as the individual living in the home owns it. A homestead can 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.
Do I, as a homeowner, get a tax break from property taxes? Yes, you may apply for homestead exemptions on your principal residence. Homestead exemptions remove part of your homes value from taxation, so they lower your taxes. For example, if your home is appraised at $100,000, and you qualify for a $25,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $75,000.
Do all homes qualify for a homestead exemption? No, not all homes or homeowners qualify. Only a homeowners principal residence qualifies. To qualify, a home must meet the definition of a residence homestead. The home’s owner must be an individual (not a corporation or other business entity) and use the home as his/her principal residence on January 1 of that tax year. If you are 65 or older, or disabled, you also qualify for additional exemptions.
How to apply for an exemption: To apply for a homestead exemption, visit www.mcad-tx.org/forms. The residential homestead exemption form will be the “Application for Residential Homestead Exemption, Over 65 Exemption, and Disability Exemption.”
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 move or your qualification ends, you must inform the appraisal district in writing before May 1st of that tax year.
If you have and questions, feel free to give us a call. 936-900-7000