September 18, 2020

Are You Entitled for a Property Tax Exemption?

Nobody likes paying a cent extra in taxes, and if you are living in a state like Texas, where the property taxes are high, you would want to cut down your taxes. Do you know if you qualify for a tax exemption? No state, county or city will tell you if you are eligible for a property tax exemption. You will have to find out and apply for it. Many residents are raising their requests for property tax relief even in the wake of the COVID-19 pandemic. If you are looking for more information on property tax exemptions, then this blog is for you. Get to know the most common property tax exemptions.

Homestead Exemption

A homestead exemption shields and protects the value of your home from property taxes. Here is a simple example that helps you understand better. Say you own a home that is valued $2,00,000, and you qualify for a $40,000 exemption, then you only must pay taxes for $1,60,000. All you must do is file an application with you, CAD, between January 1 and April 30 of the tax year. The deadlines and rules vary from one place to another. A few also require you to re-apply each year.

Seniors and Disabled Exemptions

If you are an older homeowner who is physically or mentally disabled, and can’t engage in work or are 55 years old and blind and can’t engage in work, you qualify for this exemption. You must prove that you are eligible, and you must meet the social security definition for the disabled.

Veterans Exemption

You qualify for a veteran’s exemption if:

  • You became disabled while serving the U.S armed force or
  • If you are a spouse or a child below 18 & unmarried. The property tax exemptions vary by states, and as far as Texas is concerned, a veteran with a disability of 100% is fully exempt from property tax,

70 to 100% might receive a $12,000 property tax exemption
50 to 69% – $10,000
30 to 49% – $7,500
10 to 29% – $5,000.

Energy Exemptions

Do you know, having energy systems in your house has an impact on your property tax bills? It increases the value of your property, which in turn increases property taxes. The solar and wind property tax exemption eliminates the extra property value for the purpose of tax assessment, but the form must be filed and sent to your local county tax appraisal district between January 1 and April 30.

Are property tax exemptions worth your effort?

Absolutely yes, the money you save from these exemptions vary depending on the place you live, the value of your house and what you qualify for. Most property tax appeals are successful.

Try working out exemptions for your property and get reduction more than what you are expecting in the upcoming year. This year 2020 is specifically filled with the financial crisis due to COVID-19, and trying for exemptions will help you in tax reduction, which will increase your savings for the year. We all are looking for tax reduction, and that can happen with exemption!

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Derick James

Hi everybody, It’s Derick from Houston and am working as a freelance property tax consultant. I love reading and writing. Write to me @ derickjames784@gmail.com

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