We’ve previously written a guide to homestead exemptions and want to continue for our area by discussing how to apply for an HCAD homestead exemption. Most of our clients and customers live in the area and would benefit from the simple practice
1. What is an HCAD Homestead Exemption?
HCAD stands for Harris County Appraisal District. Any property in the area may be eligible for a break on property taxes if they meet certain criteria. This exemption basically removes part of the value of your property from your taxes to lower them. As an example, properties valued at $100,000 can qualify for a $20,000 exemption. As a result, your property tax burden would be for $80,000 instead of $100,00. You may qualify for additional homestead exemptions if you are aged over 65, over 55 and a surviving spouse, or a 100% disabled veteran.
2. Types of HCAD Homestead Exemptions
Each county has its own standards when it comes to exceptions. HCAD ones include:
- County taxes – All property owners qualifying for a homestead exemption may receive a 20% exemption. Again using a property valued at $100,000, you may have the taxable value reduced by $20,000 to $80,000.
- School taxes – All property owners qualifying for a homestead exemption may receive a minimum $25,000 exemption on their property’s value for the taxes on their particular school district.
- Other HCAD exemptions – All property owners may also receive up to a 20% exemption of the property’s value from taxing bodies such as a city, educational, or other special districts. Best of all for those of you with lower value properties: you will receive at least $5,000 even if that is more than 20%. Each taxing body determines whether or not it will offer these optional exemptions to what percentage.
3. How to Apply for an HCAD Homestead Exemption
Fill out Form 50-114-A when you are ready to apply for a residence homestead exemption. You will be asked in Section 1 to select from several types of exemptions including General Residence Homestead Exemption, Disabled Person, etc. Section 2 is information on the type of property owner: single adult, married couple, or other such as individuals who own the property together. Section 3 is for the property information such as the date acquired and occupied, address, legal description, and more. You may be exempt from being required to provide a copy of state issued identification and can apply for it via Section 4. Section 5 is for additional notes, and Section 6 is your affirmation and signature.
Houston Bookkeeping, Taxes, & More
Most of our clients live and work in Harris County cities such as Houston, Jersey Village, and others. Having a bookkeeper on hand is great when you have questions on homestead exemptions. Feel free to contact us if you need help doing so.