
Homestead exemption is a privilege extended to homeowners who live in a particular state and maintain a primary residence. In Texas, exemption extends to condominium owners as well. Texas also extends additional exemptions to eligible senior citizens, veterans or their descendants and disabled residents. Applying for a homestead exemption for your condo involves providing some specific documents to prove ownership and residency in the state.
Property
Homestead exemption is available to homeowners who occupy their detached home, condominium or mobile home on leased land in Texas. Homestead exemption can include up to 20 acres of land as long as it is used as a yard. As a homeowner you are allowed to claim one property for homestead exemption. If you temporarily move away from the house, but do not declare another primary residence, you won't lose your homestead exemption status in Texas.
Basics
Homestead exemption effectively lowers your property tax liability by excluding a portion of the home's value from property taxes. For example, if your home is worth $100,000 and you are eligible for an exemption of $10,000, your tax bill would be based on a home value of $90,000. In Texas, homestead status exempts a portion of your condo's value from school, county and optional special district taxes.
How
To declare homestead exemption for your condo, obtain the state's exemption form and submit it to your appraisal district office. The application requires you to live in the condo on Jan. 1 of the year you apply unless you're a senior citizen turning 65 years old. Additionally, the state requires a driver's license or state-issued personal identification certificate, vehicle registration or an affidavit stating you don't own an automobile, and a utility bill in your name for the property you want to exempt.
Value
Homestead exemption in Texas exempts the first $15,000 of value on your condo from your tax bill. If you're a senior or disabled citizens 65 years or older, you can exclude an additional $10,000 from your condo's value. You might also be eligible for an optional district exemption of no less than $5,000 or up to 20 percent of your condo's value.
References
- Office of the Texas Comptroller: Savings on Home Taxes
- Office of the Texas Comptroller: Application for Residence Homestead Exemption
- Montgomery Central Appraisal District: What Kinds of Homestead Exemptions are Available?
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Summary Page. Accessed April 17, 2020.
- Institute on Taxation and Economic Policy. "Property Tax Homestead Exemptions." Accessed April 17, 2020.
- Connecticut General Assembly, OLR Research Report. "State Homestead Exemption and Credit Programs." Accessed April 17, 2020.
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Pages 4-46. Accessed April 17, 2020.
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Pages 9 and 41. Accessed April 17, 2020.
- U.S. House of Representatives, Office of the Law Revision Counsel. "11 USC 522: Exemptions." Accessed Feb. 2, 2020.
- Federal Register. "Revision of Certain Dollar Amounts in the Bankruptcy Code Prescribed Under Section 104(a) of the Code." Accessed Feb. 2, 2020.
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Pages 31 and 36. Accessed April 17, 2020.
Writer Bio
Monica Dillon has more than 10 years experience in real estate sales, marketing, investing and appraising. She specializes in energy efficiency building practices and renewable energy. Dillon has been syndicated by the National Newspaper Publisher's Association. Her work has also appeared in the "Journal Of Progressive Human Services."