One of the biggest tax benefits of homeownership is the ability to file for a homestead exemption. Here’s what it does and how it works.
We want to make sure that all homeowners in the Austin area are taking advantage of all the ways they can save on property taxes. One of the biggest sources of tax savings for homeowners is the homestead exemption. Here are a few things you need to know about it.
First, the property you file the exemption with needs to be your primary residence. You also need to have owned the home as of January 1 of this year. Finally, make sure the address on your driver’s license matches the address of the property for which you’re filing the homestead exemption. It’s a bit of a pain, but will save you more stress down the road than it’ll cost you.
You must file your homestead exemption this year by April 30, but you should do it as soon as possible.
So how much money do you actually save by doing this? Here’s an example:
Let’s say that your home is taxed at a value of $700,000. At a standard .024% tax rate, that would give you a property tax bill of $16,800.
If you file your homestead exemption for this property, its assessed value drops to $560,000. That will give you a $13,440 tax bill—an easy savings of $3,360 by filing a simple document with the county.
If you have any questions for us about the homestead exemption or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.