What is a homestead exemption?
After Frisco City Council adopted the city’s first-ever homestead exemption in June, a few residents asked, “Don’t I already have a homestead exemption.” Yes, but it has not been through the city.
According to the Texas Comptroller’s office, a homestead exemption removes part of a home’s value from taxation. To qualify for an exemption, your home must be your principal residence as of Jan. 1 of the tax year.
Texas school districts are mandated to offer homeowners a $25,000 exemption for the school district portion of tax bills. Cities cannot offer a dollar amount as an exemption, but they can offer an exemption of up to 20 percent of the home’s value. Frisco City Council decided to adopt a 7.5 percent exemption.
Homeowners may also qualify for exemptions through the county or as senior citizens. Residents can apply for an exemption through either the Collin Central Appraisal District or the Denton Central Appraisal District.