As many of you know, the State of Texas allows you to “homestead” the ONE property you live in.  The state allows homeowners to receive a tax break on their primary or “homesteaded” property – about 17% off their taxes.  This can save a homeowner a significant amount of money each year, but only on your primary residence.   If you own investment properties, you must pay full taxes on those properties each year.  On a side note, once you file for your Homestead Exemption with your county’s appraisal district, you should not have to file again.  It remains attached to the property until you sell your home.  So you only have to file this one time – not annually.

How do I file for my Homestead Exemption?  Go to your county’s appraisal district online.  Look for a link to “Forms” and then search for “Homestead Exemption.”   Here are the links to the forms my clients use in the Houston area:  Harris County Appraisal District:  www.hcad.org;  Fort Bend County Appraisal District: www.fbcad.org;  Brazoria County Appraisal District:  www.brazoriacad.org;  Galveston County Appraisal District: www.galvestoncad.org; and Montgomery County Appraisal District:  www.mcad-tx.org.

When completing the form, most people check the box that says “General Residential Exemption.”  But you may also qualify for additional exemptions.  Please read the Instruction Page (usually the 2nd page of the form) to see if you qualify for any additional exemptions:  Over 65, Disability, Over 55 Surviving Spouse, etc…  Remember to sign the bottom of the form before mailing it into your county’s appraisal office.

When can I file for my Homestead Exemption(s)?  You have to own and occupy your residence by December 31st of the year you are filing.  So for example, if you purchased your home in August of 2010, you have owned & occupied the home BY December 31, 2010, so you can claim the exemption for 2010.  You can file for your exemption from January 1st – March 31st.  But the sooner you can file this form the better. 

Will I see an adjustment in my monthly mortgage payment?  It depends.  If you do not escrow your taxes and insurance and have elected to pay them yourself at the end of the year, then “no” you will not see any adjustment in your monthly payment.  If you escrow your taxes and insurance in with your payment each month, then “yes” you may.  If you purchased a home that already had a Homestead Exemption on the property by the previous owner, you might not see any difference in your payment.  The exemption might remain on the property through the end of the year.  But if you elect not to Homestead your property, you might actually see your taxes go up when the previous owner’s Homestead Exemption ”falls off” at the beginning of the new year.  So do file as soon as you can. 

Also, filing for your Homestead Exemption is FREE.  You will likely start receiving solicitations via the mail from companies that will “file your exemption for you.”  You DO NOT  need to pay anyone for this service.  It is FREE.

If you have any questions, please don’t hesitate to give us a call.  We are always here for you…from Contract through Closing,…and Beyond.