Property Ownership

In Texas, the homestead exemption for ad valorem tax purposes allows a homeowner to:

APay no property taxes on their primary residence
BReduce the taxable assessed value of their primary residence✓ Correct
CDefer property taxes until the property is sold
DCap annual tax increases at 2% per year

Explanation

The Texas homestead exemption reduces the taxable assessed value of a primary residence, thereby reducing the property tax bill. For school district taxes, homeowners receive at least a $100,000 exemption (increased in 2023).

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