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Old 06-06-2010, 10:44 AM
 
191 posts, read 454,092 times
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I did a search, but I didn't see anything.

We're residents of Montana and my husband is active duty, and as such we don't pay income tax or property tax (and they have no sales tax). I've always heard that Texas is a good state for a military member to have their residence from, but I can't find any specific reasons why. Are there military tax benefits in Texas?
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Old 06-06-2010, 11:28 AM
 
Location: San Antonio
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The State of Texas does not have State income taxes but if you own a home you will pay property taxes but we do have the homested exemption act which allows a portion of the value of your home from being taxed which lowers your property tax obligation. There is also a disabled veterans exemption. I hope this helps.
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Old 06-06-2010, 12:13 PM
 
Location: San Antonio
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There are no income taxes here, but there are no exemptions for military for property or sales tax. Because no one in the whole state of Texas pays any state income taxes, they have to make it up with property and sales tax.

Texas is a good state for Military because they love the Military, and will will be respectful. And it's just an all around great state!
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Old 06-07-2010, 08:05 AM
 
191 posts, read 454,092 times
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What is the homestead exemption?
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Old 06-07-2010, 08:15 AM
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Location: Ohio
17,107 posts, read 38,096,265 times
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Quote:
Originally Posted by charlie_paige View Post
What is the homestead exemption?
Homestead exemption - Wikipedia, the free encyclopedia

Quote:
Allows a deduction equal to 20% of house value. Additional exemptions are available for county taxes, people over 65 and people who are disabled.
So it's basically a discount of 20% (up to $15K) of the assessed value of your house on the home that you occupy.

Last edited by Bo; 06-07-2010 at 10:14 AM.. Reason: Reworded my sentence to be more accurate.
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Old 06-07-2010, 08:24 AM
 
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But it has to be acreage, or am I reading that wrong? I haven't had all my coffee yet this morning. And, you can't write off anything off of another home, so any loss that we take on our current home (which is going to be a rental property) can't be deducted on our taxes, is that correct?

Texas's homestead exemption has no dollar value limit and has a 10 acres (40,000 m2) exemption limit for homesteads inside of a municipality (urban homestead) and 100 acres (0.40 km2) for those outside of a municipality (rural homestead). The rural acre allotment is doubled for a family: 200 acres (0.81 km2) can be shielded from creditors in Texas for a rural homestead.

It's a moot point anyway, as we aren't going to make ourselves house poor, but I might as well be as educated about state laws and what not as possible. Thanks for the info!
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Old 06-07-2010, 10:07 AM
 
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The homestead exemption takes $15,000 off the tax appraised value of your primary residence if you own the home as of January 1 of the year you are applying. So, if you buy a house anytime after January 1, you do not get the homestead tax break until the following year. Between January and April (I believe) of the following year, submit an exemption form (found at www.bcad.org) for the proper exemption(s). DO NOT pay someone to submit if for you...you'll get plenty of mail of kind folks wanting to do it for you for $25-$50. You can do it for the cost of a stamp.

So, if your house has a TAX appraisal of $200,000 then you would be taxed on $185,000 once your homestead exemption goes into effect.

The tax write-off for any loss on your current home would be done on your federal taxes and perhaps through your current state. Not aware of any write-off for Texas (especially since the house isn't in Texas).
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Old 06-07-2010, 10:11 AM
 
Location: Mid South Central TX
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Keep in mind that the $15K (appraisal) reduction is for the school district portion only (yes, I know that is a huge chunk of it)

Link to Bexar County Appraisal District: Bexar Appraisal District
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Old 06-07-2010, 10:28 AM
 
Location: McLean, VA
790 posts, read 1,880,267 times
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Pobre is right. I posted this on another thread, but a $220,000 home in NISD with homestead exemption had taxes of $5,760 (without HS is $5,920). That's not a lot of savings but everyone gets excited about the HS exemption for some reason. Tax rate on that house was 2.549, but it varies.
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Old 06-07-2010, 12:39 PM
 
Location: Western Bexar County
3,823 posts, read 14,665,638 times
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Quote:
Originally Posted by austindoxie1972 View Post
Pobre is right. I posted this on another thread, but a $220,000 home in NISD with homestead exemption had taxes of $5,760 (without HS is $5,920). That's not a lot of savings but everyone gets excited about the HS exemption for some reason. Tax rate on that house was 2.549, but it varies.
The Homestead Exemption is not so much the little money you save, but the 10% ceiling placed on appraised values going up in any given year.
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