Property Tax Exemptions

  • Chris Price
  • 11/24/20

While taxes aren’t a fun topic, they are a part of life, and homeowners want to make sure that they are getting all of the tax breaks that they qualify for.

Proprietors in Austin pay their property taxes to the city of Austin, Travis County and the local school district for operations and maintenance. Appraisers from the county offices assess proprietors annually and it’s from the value attained, that levies are charged. Taxes are charged on 100% of the market value of your property.

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With the increase in population comes the increase in property values. Austin has proven to be quite the location for new property owners over the years. An effect of this is the increase in the amount of taxes levied against properties even if the rate charged remains the same. The above makes this article even more essential. In its most basic definition, a property tax exemption seeks to lower the taxable value of the property. As stated earlier, property taxes are charged on 100% of the market value. So, if you qualify for a cumulative tax emption of $20,000 on your $ 100,000 appraised property, your taxes will be charged on $ 80,000.

Without further ado, below is a short summary of the various exemptions and possible requirements for tax exemptions.

 

General Homestead Exemption
As the name suggests (homestead), this exemption only applies to property that you own and occupy as your primary place of residence. It can only be claimed once; on your homestead and not on any other property. All homeowners qualify for a $25,000 school district tax exemption per year.

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65 or older/Disabled Veteran Exemption (Homestead Exemption)
If you are disabled veteran or 65 years of age or older, you can get an additional $10,000 exemption from school taxes in Texas.

School Tax Ceiling
This applies to the amount of school taxes a property owner pays. As the name suggests, there is a limit with regards to school taxes. Under this exemption, the ceiling freezes your school taxes at a particular figure in the year you are qualified for the school tax ceiling exemption.

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Tax Deferrals
Depending on the point of view, this could be considered an exemption and also as not. What tax deferrals offer to a property owner is the postponement of paying property taxes for a specified period of time. The taxes are not wavered off but late fee penalties will be not be added to your accruing taxes. As with regards to interest rate, you will be charged with a reduced rate. Households with either a disabled veteran, a disabled person or senior aged person are eligible for this exemption.

To apply for a tax deferral, a property owner starts by filing a Tax Deferral Affidavit at the local county offices.

Key dates to remember
For Travis County and other local jurisdictions within the State, the date for qualification for a tax exemption is January 1st. The other important date to mark on your calendars is April 30th. This is the last date for owners to submit an application for property tax exemptions.

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