Friday, October 21, 2016

Save Money on Your Property Taxes

When it comes to paying taxes on your primary residence, the homestead exemption is a great way for you to save some money.

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Tax season is coming up and you will get your property tax bill in the mail shortly. Today, we wanted to talk about a few different ways to save some money when it comes to paying taxes on your primary residence.

If you haven’t already, we recommend filing a homestead exemption. The homestead exemption can save you 20% on your tax bill. How do you know if your residence qualifies? If you owned your property on January 1st and the property is your primary residence, then you are eligible for the homestead exemption.

All you have to do is go to the Travis County website and download the application form. You can also reach out to us and we can send you one!

Filing for a homestead exemption is definitely worth the effort.

How does the homestead exemption work? Let’s say that your property is worth $300,000 according to the county. The average tax rate in Austin is 2.4%, which means that you would owe $7,200 in property taxes for the year. If you have filed for your homestead exemption, you get to take 20% off of that $300,000 home value. That means you would only owe $5,800 in taxes, which is $1,400 less than you would owe without the homestead exemption.

That’s an extra $1,400 in your pocket just for filing a piece of paper. In our opinion, filing for a homestead exemption is definitely worth it.

In addition to the application form, you need to submit a valid Texas ID or driver’s license with the property’s address. The addresses have to match in order to qualify for the homestead exemption.

As you can see, the homestead exemption is a great way to save some money when paying your property taxes. If you have any other questions about property taxes or about real estate in general, give us a call or send us an email. We would be happy to help you!