In June, the city councils in Leander and Georgetown approved to increase its homestead exemption. Here’s what the new homestead exemptions are and how it impacts the real estate market.
Georgetown
The new homestead exemption will come into effect for the 2021 tax year. It will increase from $5,000 or 1% of market value, whichever is greater, to $10,000 or 2% of market value in Georgetown. The effect will be a $389,000 decrease in property tax revenue. Homeowners could also see a $20 lower tax bill.
Leander
In Leander, the city council approved a homestead exemption of $5,000 or 1% of market value, whichever is greater. Those numbers are the amounts taken off a home’s appraised value. A home’s appraised value minus the homestead exemption is what property taxes are based off. This homestead exemption will dave Leander homeowners about $30 in property taxes. It will impact city tax revenue by almost $4,000.
Williamson County
Earlier this spring, Williamson County commissioners also voted on extending the property tax exemption for individuals 65+ years of age and disabled homeowners. The state minimum is $5,000 or 1% of the home’s value. This number is different in Lender for homeowners 65+ or disabled. In Leander, their exemption is $10,000 and a property tax freeze.
How Homestead Exemptions Impact the Real Estate Market
As we mentioned in the formula earlier, the home’s appraised value – homestead exemption = amount based for property taxes, a larger homestead exemption number means less in your home’s appraised value, which equals less for you to pay in property taxes. This is exceptionally beneficial as home prices continue to rise.
Data from the Williamson Central Appraisal District reports that the median home value in 2021 is $323,450. 2020’s median home value was $273,988. This year also brought in the most significant year-over-year increase in the total market value of real residents parcels, with $69.5 billion reported. It’s a $14.6 billion year-over-year increase in taxable value for Williamson County.
If you want to know what your home’s valued at or like to learn more about homestead exemptions, contact Prism Realty today! We’re here to offer our expertise and help you achieve your real estate goals.
