"Exciting Homestead Exemption Updates Unveiled in Texas for 2024!”
In a move towards substantial property tax relief, Texas has recently implemented a groundbreaking $18 billion package, bringing significant updates to the homestead exemption. Homeowners across the state are set to benefit from an increase in their homestead exemption from $40,000 to $100,000 of their home's assessed value. Whether you're already enjoying the perks of a homestead exemption or contemplating applying for one, these changes are sure to capture your attention.
Automatic Application for Existing Homesteads:
If you're currently enjoying the benefits of a homestead exemption, the good news is that these changes will automatically apply to your property tax bill. However, if you haven't yet applied for a homestead exemption, it's strongly encouraged that you take advantage of this opportunity.
Applying for the Homestead Exemption:
For those who don't currently have a homestead exemption but wish to benefit from the updated policy, the application process is relatively straightforward. Head to your county's appraisal district website to find the necessary forms. Ensure you have a Texas driver's license or ID card with a matching address, and remember that you must own and occupy the property to be eligible for the exemption.
According to the Texas Legislature, the average homeowner is expected to see savings of $1,200 due to these homestead exemption updates. Moreover, individuals aged 65 and older or those with disabilities could witness average savings of up to $1,400. The exact amount of savings will depend on the assessed value of your property.
Three-Year Cap on Non-Homestead Appraisals:
In addition to the homestead exemption updates, Texas has introduced a three-year cap on appraisal increases for non-homestead properties. This means that appraisals for properties valued at $5 million or less cannot increase by more than 20% over a three-year period. Real estate experts, like Denson, anticipate significant relief for property owners, especially in light of recent substantial increases.
Denson explains, "Twenty percent still sounds like a lot. It really is. No one wants property taxes to go up 20%, but in the last few years, 2020, 2021, '22, '23, it's not uncommon to see 30%, 40%, even 100% increases on your value. So, this will really help folks that do have that secondary asset."
In 2023, Harris County witnessed a staggering 95% increase in property values from the previous year. Residential properties saw a 16% increase, while commercial properties experienced a notable 21% spike. These statistics underscore the significance of the new policies in providing much-needed relief to property owners across the state.
If you have lingering questions or concerns about property taxes, your local appraisal district website is a valuable resource. Stay informed, take advantage of the homestead exemption updates, and navigate the evolving landscape of property taxes in Texas for a brighter and more economically favorable 2024!