Texas Homestead Exemption Defined

The Texas Homestead exemption is a place where a family or a single adult makes their home, including the land and all of the buildings.  The residential homestead, by far is the most used and can be either rural or urban.

Texas Homestead Exemption is legally designed to protect the value of the homes of it’s owners from property taxes, creditors, and circumstances arising from the death of the homeowners spouse.  Laws enacting such protection are found in the state statutes or constitutional provisions which exist in many other states.

 

Texas Homestead Exemption laws typically have three primary features:

  1. They prevent the forced sale of a home to meet the demands of creditors
  2. They provide the surviving spouse with shelter
  3. They provide an exemption from property taxes which can be applied to a home

Also the positive effect of this exemption means that, in most cases, if someone sues you and recovers a judgement against you, they cannot force you to sell your homestead to satisfy the judgement.

Exemption Provided

  • The lender who loans funds for the purchase
  • The tax man, in the form of County, City or School ad valorem taxes
  • The contractor who provides material and or labor for home improvements or repairs
  • The lender who loans for a home equity loan
  • Owelty Liens(divorces, etc.

Circumvention of the Homestead Exemption

Because the homestead exemption is a state constitutional exemption, it cannot be waived.

When And Where To File

Applications must be made after purchase between January 1 and April 30 at the county clerks office

Savings Example

If your home is valued at $100,000 less the Homestead Exemption or $15,000 then you will be taxed on a new home value of $85,000

I hope this has been helpful.  Please call me with any questions about the Texas Homestead Exemption.

Happy Trails,

Donnie