Texas passed the first homestead law in the United States, pioneering the country’s use of these laws. The idea was to protect homeowners’ lands from seizure due to loan default. Other states followed, and the homestead law became a critical Texas contribution to American jurisprudence.
What is a homestead?
In simple terms, a homestead is a house or structure you own that includes land of up to 20 acres for residential purposes. This can consist of single-family homes, condominiums, or even homes on rented land, provided you own the house. Each state may have varying definitions, just as Texas has its own.
Exemptions and tax benefits
While the law protects homeowners from creditors, there are exemptions such as mortgages, property taxes and home improvement loans. The state also offers tax exemptions for homesteaders that can reduce their burdens. As of 2023, this exemption went up to $100,000. There are also exemptions given to seniors, disabled individuals and disabled veterans.
Eligibility
To get a homestead exemption, the property must be your primary residence at the start of the taxable year, January 1st. The property must be in your name, and you must have a state-issued ID with an address matching the property for which you are claiming exemption.
You may apply for a residential homestead exemption at your local appraisal district. If granted, the exemption needs no further renewal.
Legal protection
Understanding Texas homestead laws can help maximize your property and provide financial security. If you need help applying for the exemption or are facing other real estate issues such as zoning, property boundaries or disputes with homeowner association rules, you may consider seeking legal counsel.
