May 29, 2023

Dallas Texas Homestead Exemption


People across the country are making a move to Dallas to take advantage of the economic opportunities, thriving communities, and fantastic quality of life. But did you know that Texas also offers plenty of ways to save on your taxes?

Every dollar counts in today’s economy – so finding ways to save on your taxes can help make life a little easier. One of the best tax breaks in Dallas is the Homestead Exemption.

Under Texas law, homeowners are eligible for a homestead exemption if they own and occupy their home as their primary residence on January 1st of the tax year. This exemption reduces the taxable value of your home, which in turn lowers the amount of taxes you have to pay on your house.

We recently covered the Texas Homestead Exemption on our YouTube channel – and you can read on to learn more about this tax break.

What Is A Homestead Exemption?

A Homestead Exemption is a legal provision that provides tax relief for homeowners by reducing the taxable value of their property. The exemption amount varies from county to county and can be used to reduce the taxes on your primary residence.

Every year, the county assesses the value of your property. That value is then used to calculate your taxes. Under the Homestead Exemption, a portion of that value is capped, meaning you don’t have to pay taxes on the amount that is exempted. This can save you hundreds of dollars in taxes each year!

That cap in Dallas is 10% – which can be a lifesaver as home values continue to skyrocket. As property values rise by 20, 30, or even 40%, you only have to pay taxes on the first 10%. That can add up to significant savings over the life of your home! Depending on your location, the exemption can be up to 20% of your home’s value.

How Much Money Can You Save with a Homestead Exemption?

One of the best parts of a Homestead Exemption is that it can save you a significant amount of money each year on your property taxes. In Dallas, the exemption is often based on your location, the school district, and the size of your home.

For instance, imagine that your home is assessed at $500,000. When you apply the school ISD tax credit exemption, you could see your assessment value capped at $460,000. That $40,000 is then taxed at 2% for the year, saving you around $800 in tax savings. This is a big saving that you’ll want to take advantage of!

Always check with your local appraisal office to make sure you understand all of the tax exemptions that are available to you.

How To File For A Homestead Exemption

Here’s the best part of the Homestead Exemption – it’s completely free! If you find someone attempting to charge you to file for a Homestead Exemption, report them immediately.

In Dallas, filing is pretty simple. Head on Google and search for your county’s appraisal district. This will bring you the results for the county’s website. One the site’s navigation, find the forms and resources section.

Look for residential exemptions from within the list of resources, and search for the Residential Homestead Exemption Application. This is the primary application for filing for the Homestead Exemption. You’ll need to fill out the form and submit it along with proof of your homestead status.

The requirements to apply for the exemption include:

  1. You own a home in Texas
  2. You live in that home as your primary residence

You can fill out the form and submit it for review if you qualify. Once approved, you’ll receive your Homestead Exemption and save money on taxes yearly!

A few things to remember when filing:

  1. Always read the instructions on how to file and make sure you have all of your documents in order before submitting.
  2. Be sure to submit your application before the deadlines established by your county; otherwise, it won’t be accepted.
  3. Make sure to have the information for all those who live in the home when filing.
  4. Utilize the property search feature to find the legal description of your property (subdivision, lot number, etc.)
  5. Fill out all sections clearly and then print. Once signed, you can send in your application and supporting documents.

Once approved, you’ll receive your Homestead Exemption and save money on taxes yearly! Include a copy of your driver’s license with your application to ensure that all the information is correct. Your Homestead Exemption will be active for the entire year, so make sure you renew it before the next tax season.

Each year, go back and check the amount that is being exempted from your taxes. This is important to ensure you are still getting the most benefits out of your Homestead Exemption.

Take Advantage Of The Homestead Exemption In Texas

If you live in Texas, the Homestead Exemption can make a massive difference in how much you pay in taxes each year. Make sure to take advantage of this valuable tax exemption and save as much money each year as possible!

Take the time to understand the Homestead Exemption and make sure that you’re taking full advantage of it. With a little bit of research, you could save hundreds of dollars on your taxes every single year.

Want to learn more great tips and insights just like this? Make sure to follow us online at Living in Dallas to see more tips and tricks for managing taxes in Dallas! Whether you are looking to move in 9 or 90 days, we can help you make your move as smooth and stress-free as possible! Give us a call or text at 214-441-6684, shoot us an email, or schedule a Zoom call today !

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Connect with Living in Dallas Texas Team

Ready to take the next step?

Let's schedule a meeting! During this initial consultation, we'll learn more about your situation and what you're seeking in a home. We'll provide advice and address any concerns you may have in order to determine the best approach to achieving your goals. By the end of our conversation, we'll have a solid plan of action and next steps for moving forward.

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