The full explanation
In Texas, for example, the residence homestead exemption removes part of your home's value from the tax calculation; to get it you must own the home, live there as your principal residence and apply. State laws vary widely: some cap the amount protected and others depend on the size of the property or the owner's age.
An example
Elena and her husband bought their first home and live in it. They ask their county appraisal office how to apply for the homestead exemption, because in their state it can lower the property tax they pay each year.
You will see it in…
- Your county appraisal office's exemption application
- Your notice of value or property tax bill
- Your escrow statement, if the tax is paid through your mortgage
