Taxes: Homestead Exemption

Posted by Stephanie Quirk on March 14, 2019  /  in Blog, Home Buyers Tips  /  No Comments

What You Need to Know About the Homestead Exemption

Saving money is at the top of every homeowner’s list, especially during tax season. With all the available credits and deductions available to owners, one important tax break not to miss is the Residence Homestead Exemption that can help save money on property taxes.

What is the Homestead Exemption?

Per the Texas Comptroller, “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.”

What Are the Benefits to the Homestead Exemption?

By claiming the Residence Homestead Exemption, an owner can remove part of the value of their property from taxation, essentially lowering their taxes. You are basically paying the taxes on the value of your home after the exemption amount is applied.

What Form is Needed When Filing Taxes?

In the State of Texas, Application Form 50-114 is required to apply for the Residence Homestead Exemption and can be obtained through the State Comptroller’s Office. Click here to download and print the form.

Is there a deadline for claiming the Homestead Exemption?

Typically, Homestead Exemption forms should be submitted by February 1st of a given year.

Is There a Fee to File Homestead Exemption Form?

No, there is not fee to file the Homestead Exemption Form. If there is a company offering to file on your behalf for a fee it is more than likely a scam.

Get the Homestead Exemption Form for Texas here.

Disclaimer: The information provided should not be considered tax or legal advice. For full details concerning the Homestead Exemption in Texas, visit the Texas Comptroller’s website or contact their local office.

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