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Have you ever dreamed of owning a piece of land in the gorgeous Texas Hill Country, but the thought of high property taxes makes you hesitant? What if I told you there’s a way to save big on your taxes when buying land? Whether you’re a seasoned landowner or just starting to explore, you’ll want to know how to slash those taxes before you even buy.
In this guide, we’ll break down the simple steps to reduce your tax bill and how you can save thousands when purchasing land in the Texas Hill Country. So, before you take the plunge, let’s dive into some must-know tax tips to keep more of your money in your pocket!
1. Property Taxes Are Steep—But You Can Save
Texas property taxes help fund public schools, and while that’s great for the community, it means property taxes are higher than in many other states. But here's the kicker: Texas offers exemptions that can drastically lower—or even eliminate—property taxes. The most common? The Homestead Exemption.
This exemption lowers your home’s taxable value by up to $100,000 for school taxes. So, if your home value increases, you won’t see a massive hike in taxes to match. In fact, the exemption can keep your taxable value from increasing by more than 10% each year!
And it’s not just for homes—this exemption is available to anyone in Texas who owns property. If you plan to buy in the Hill Country, make sure you’re applying for this exemption right away.
2. Looking for Land? Check for Agricultural Exemptions
If you’re buying land, especially property larger than 10 acres, you could qualify for agricultural exemptions, which can dramatically reduce your taxes. These exemptions apply to properties used for farming, ranching, beekeeping, or grazing. And if the property has been used for these purposes for five of the last seven years, it may already have this exemption in place.
But, what if you don’t want to farm or run a ranch? Don't worry—there’s an option for that, too. You can keep your agricultural exemption and shift the focus from traditional agriculture to wildlife management, which still keeps your taxes low but doesn’t require you to manage crops or livestock.
3. How Wildlife Management Can Keep Your Taxes Low
Here’s the good news for nature lovers: you don’t need to be a rancher to benefit from agricultural exemptions. If you’re not into farming, you can apply for a Texas Wildlife Exemption instead. This exemption allows you to maintain your tax savings while preserving the natural beauty of your land.
All you need to do is implement at least three out of seven approved wildlife management practices. These include things like predator control, erosion management, and providing supplemental food or water for wildlife. And the best part? It’s easy to get help from experts like Plateau Land & Wildlife to create a personalized plan that fits your property’s needs.
4. Buy Land That Already Has Exemptions
Another great tip is to look for land that already has exemptions in place. Some properties in the Texas Hill Country come with existing agricultural or wildlife exemptions. But here’s the catch: you’ll need to confirm with the seller and local tax office that the exemption is transferable and still valid. This can save you a lot of time and effort, especially if you’re eager to start enjoying your land right away.
5. The Importance of Research
Before you buy any land, it’s crucial to do your research. Understand the current use and tax history of the property. Are there existing exemptions on the land? Will you be able to maintain them? A local realtor familiar with the area’s tax rules can be a great resource for navigating these details.
Why This Matters to You
Understanding how taxes work in the Texas Hill Country is key to making the most of your investment. Knowing the exemptions available can help you save significant money in the long run, which makes owning land in this beautiful region much more affordable.
Ready to Find Your Dream Property?
If you’re considering buying land in the Texas Hill Country and want expert guidance on finding the right property and taking advantage of tax-saving exemptions, don’t hesitate to reach out. I can help you find the perfect piece of land and ensure you’re getting the best tax breaks available.
Ready to make your dream of owning land in the Texas Hill Country a reality? Let's chat.
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