Texas Homeowners Are Overpaying in Property Taxes and Don't Know It
Key Takeaway
In Texas, a homestead exemption can cut the taxes on your home by 10% to 20%, and many homeowners don't know it exists. Protesting your home's valuation every year helps keep the value your taxes are based on down. You can hire a company to handle it for a percentage of what they save you.
A lot of people are never made aware of the homestead exemption for their home. If you own a home in Texas and you're not taking advantage of it, and protesting your property valuation every year, you're likely overpaying.
What is the Texas homestead exemption?
I'm not going to go into the whole history of it, but in Texas there's what's called a homestead exemption. It can cut your taxes by 10% to 20% on your home, which means a lot. Most homeowners don't even know it exists.
Why protest your valuation every year?
You can also protest the valuation on your home every year. That helps keep down the valuation they base your taxes on, which keeps your tax basis lower over time. Make sure you do that every year. It's just worth it.
Can someone handle the protest for you?
Yes. There are companies you can hire to handle the process for you. One I've used personally is called Ownwell, and they charge 25% of what they can save you. So it's not really money out of your pocket, and it can make a big difference.
Keep more money in your pocket
This is money staying in your pocket, and it takes one conversation to get started. If you have questions about your home's value, start with our home valuation tool or contact HomeCoach. This is C.W. Ross, certified real estate planner and multigenerational HomeCoach.
Frequently Asked Questions
What is a homestead exemption in Texas?
It's an exemption on your primary home that, according to C.W. Ross, can cut your taxes by 10% to 20%. Many Texas homeowners don't know it exists.
Should I protest my property valuation every year?
Yes. Protesting your valuation every year helps keep the value your taxes are based on down over time.
Can I hire someone to protest my property taxes?
Yes. There are companies that handle the process for you. C.W. Ross has personally used Ownwell, which charges 25% of what it saves you.