You may have heard about the Texas Homestead Exemption and changes to the rules effective January 1, 2022.
Living in Texas has so many advantages. Texans enjoy an affordable cost of living, a very stable economy, and no state income taxes. In Texas, we view home ownership as practically sacred. Utilizing this homestead deduction is quick, easy and offers a huge benefit throughout your ownership of this property. Depending on your taxing jurisdiction, the reduction in taxable value can range from $25,000 to a percentage (up to 20%) of the home’s value. One of the best things about filing your homestead exemption is that it also caps the percent your taxes can rise annually.
In 2021, homebuyers were required to wait until January 1, 2022 to file their homestead exemption. If you bought a home with me in 2021, you received an email in January with the links to file your homestead exemption. This filing is only necessary once, not annually. The homestead exemption can only be filed on one property at a time in Texas.
New filing rules for 2022:
The new rules effective January 1, 2022 allow homebuyers to file for the exemption immediately after closing as long as the following conditions are met:
- The home itself qualifies as a complete and habitable residence in January of the year purchased. So, new construction likely needs to wait until the following January to qualify.
- Only individual homeowners (not corporations or other entities) may receive the exemption. Family trusts often qualify – check with the county appraisal district for requirements.
- A homestead can be a house, condominium or manufactured home. It can also include up to 20 acres, if the land is also owned by the homeowner and used as a yard, or for another purpose related to the residential use of the home.
Homeowners can easily apply on the county website. Simply search for the Application for Residential Homestead Exemption or click on the link below. You’ll need to upload a copy of your driver’s license or identification card from the Texas Dept. of Public Safety. The address on your identification Must match the homestead address. There is no fee to file and the process is so easy. There is absolutely no need to pay anyone to do it for you.
Where to file:
If your home is in Tarrant County, click here to file your homestead exemption and to read their guidelines.
For homes in Denton County, click here to file your homestead exemption.
For homes in Collin County, click here to file your homestead exemption.
If your home is in Dallas County, their site functions a little differently. Rather than a direct link to the form, click here to review their guidelines and navigate their site to find your particular address and file there.
Need some help determining the value of your home? Reach out to Lynn Wilson at NorthTexasArea.com and I’ll be happy to assist you with all your home ownership needs.