Georgetown, TX

Georgetown City Council will increase the homestead tax exemption rate

Luay Rahil

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Amid rising property tax values, tax breaks are coming for certain homeowners in Georgetown.

Georgetown City Council approved the first reading regarding a 2% increase to its citywide homestead tax exemption at its regular meeting on June 14. A second reading will be done on June 28, 2022.

Sharon Parker, the Administrative Assistant at the City of Georgetown, states, "Over the past five years, the market value of homes in Georgetown has increased from $5.4 billion in residential market value in 2017 to $12.5 billion in 2022. As a result, the assessed value of homes has increased. The State imposes a 10% cap on the yearly increase in assessed value of homesteads, and the City currently offers the greater of a $5,000 or 3% exemption of assessed value of homesteads. For the tax year 2022 (FY2023), more than 90% of homes in Georgetown were at or above the 10% state cap."

This change will increase the percentage from 3% to 5%, and it is expected to increase the Citywide homestead exemption from $208 million to $346 million. The change is expected to reduce the average homestead tax bill by $30 at the current tax rate.

Other cities, such as Waco, have taken similar measures.

This month, the City of Waco increased the homestead property tax exemption from $5,000 to $50,000 for those 65 or older and from 10 percent to 15 percent for residential homeowners.

The City of San Antonio also raised the homestead exemption from city property taxes to 10% of the home's assessed value, effective on 2022 tax bills.

Many other cities are exploring similar measures to help their residents.

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