Once you turn 65 (or become disabled), Texas has a special provision called the homestead exemption. This exemption amounts to $10,000 of school district taxes per year. You must be 65 or older and have lived in the house on January 1st of the year being applied for. Exemptions from property tax require applications in most circumstances. Applications for property tax exemptions are filed with county appraisal districts with the general deadline for filing an exemption application typically May 1st of the year in which you turn 65. When you receive the homestead exemption, it is worth noting the “homestead tax ceiling” which is a limit on the amount of taxes you must pay on your residence. If you qualify your residence homestead for the exemption, the school district taxes on that homestead cannot increase as long as you own and live in that home. The tax ceiling is the amount you pay in the year that you qualified for the age 65 or older or disabled person exemption. The school district taxes on your homestead may go below but not above the ceiling amount.
Paying off a mortgage, having a Transfer on Death Deed, and the Texas property tax freeze are all great reasons to own a home for life! The majority of our clients (including Lockheed Martin employees) own a home and therefore our team of Lockheed Martin Retirement Specialists is aware of the finances and benefits involved. We can also show you how a home impacts the net worth statement and where on the tax return you can find certain home expenses. Homeownership nearly always has a positive effect on an individual’s finances, and we will be glad to assist you in strengthening your situation with our comprehensive approach to financial planning and investment management. We look forward to connecting with you!
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Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.
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