A general residence homestead exempts a portion of your residence homestead’s value from taxation, potentially lowering your taxes. Tax Code Section 11.13(b) requires school districts to provide a $140,000 exemption on a residence homestead and Tax Code Section 11.13(n) allows any taxing unit to adopt a local option residence homestead exemption of up to 20 percent of a property’s appraised value. The local option exemption cannot be less than $5,000.
For example, if your home is appraised at $300,000 and you qualify for a $140,000 exemption (amount mandated for school districts), you will pay school taxes on the home as if it was worth only $160,000. Taxing units have the option to offer an additional exemption of up to 20 percent of the total value.
To qualify for the general residence homestead exemption, a home must meet the definition of a residence homestead and an individual must have an ownership interest in the property and use the property as the individual’s principal residence. An applicant is required to state that he or she does not claim an exemption on another residence homestead in or outside of Texas. If the property owner acquires the property after Jan. 1, they may receive the general residence homestead exemption for the applicable portion of the tax year immediately on qualification of the exemption if the previous owner did not receive the same exemption for the tax year.
Contact your local appraisal district, for more information regarding eligibility.