Introduction
Texas homeowners can significantly reduce their property tax bills by applying for a homestead exemption. This exemption lowers the taxable value of a home, which results in lower annual property taxes.
This guide explains who qualifies for a Texas homestead exemption, how to apply, and how much homeowners can save.
What Is a Texas Homestead Exemption?
A homestead exemption reduces the taxable value of a primary residence, lowering the amount of property taxes owed. This exemption is available only to Texas homeowners who use the property as their primary residence.
Who Qualifies for a Texas Homestead Exemption?
To qualify, you must:
- Own and occupy the home as your primary residence.
- Have a valid Texas driver’s license or ID that matches the home’s address.
- Submit your application by April 30 of the tax year.
Types of Texas Homestead Exemptions
General Homestead Exemption
- Reduces the taxable value of a home by up to $100,000 for school district taxes.
Over-65 & Disabled Person Exemption
- Provides an additional $10,000 exemption for seniors and disabled homeowners.
- Freezes school district property tax rates, preventing future increases.
Disabled Veteran Exemption
- 100% property tax exemption for veterans with a 100% service-connected disability.
- Partial exemptions available for veterans with 10-90% disability ratings.
Surviving Spouse Exemption
- Available to surviving spouses of military members or first responders killed in the line of duty.
- Provides a 100% property tax exemption.
How Much Can You Save with a Texas Homestead Exemption?
| Exemption Type | School District Tax Reduction | Total Estimated Savings |
|---|---|---|
| General Homestead | Up to $100,000 | $1,600 – $3,000 per year |
| Over-65 / Disabled | Additional $10,000 | $2,000 – $4,500 per year |
| Disabled Veteran (100%) | Full Exemption | 100% tax-free |
How to Apply for a Texas Homestead Exemption
Step 1: Gather Required Documents
- Completed Form 50-114 (Application for Residential Homestead Exemption).
- Copy of your Texas driver’s license or state ID (must match the home address).
Step 2: Submit the Application
- File with your local county appraisal district.
- Submit the form by mail, online, or in person before April 30.
Step 3: Receive Your Exemption Approval
- If approved, your property tax bill will be reduced in the next tax cycle.
- No need to reapply each year unless you move or no longer qualify.
Texas Homestead Exemption Deadlines
| Application Type | Deadline |
|---|---|
| General Homestead Exemption | April 30 |
| Over-65 / Disabled Exemption | One year from qualifying date |
| Disabled Veteran Exemption | Any time during the year |
How to Maintain Your Texas Homestead Exemption
- Do not rent out your entire home, or you may lose the exemption.
- Keep your address updated on your Texas ID.
- Notify the county if you move—exemptions do not transfer.
What Happens If You Lose Your Homestead Exemption?
If you no longer qualify, you may face:
- Loss of exemption and higher property tax bills.
- Rollback taxes—paying back taxes for up to five years, plus 7% interest.
- Possible penalties for fraudulent exemption claims.
Other Property Tax Relief Options in Texas
If you do not qualify for a homestead exemption, consider:
- Property tax deferral for seniors over 65 (delays payments until the home is sold).
- Property tax protests—disputing your home’s appraisal value to lower taxes.
- Installment payment plans—for homeowners struggling with tax payments.
Should You Work with a CPA for Property Tax Planning?
A CPA can help:
- Ensure you claim the correct exemptions.
- Assist with property tax appeals if your home is over-assessed.
- Maximize tax savings for homeowners.
Conclusion
Applying for a Texas homestead exemption is one of the best ways for homeowners to reduce property taxes. By filing before April 30, homeowners can save thousands on property taxes annually.
For expert property tax planning, schedule a meeting with our CPA Anshul Goyal by clicking at https://calendly.com/anshulcpa/ now.
Frequently Asked Questions (FAQs)
1. Who qualifies for a Texas homestead exemption?
Homeowners who use the property as their primary residence and have a Texas driver’s license or ID matching the home’s address.
2. How much can a homestead exemption save me?
Savings vary by county, but the general homestead exemption can reduce taxable home value by $100,000, saving homeowners $1,600 – $3,000 per year.
3. When is the deadline to apply for a homestead exemption?
Applications must be submitted by April 30 of the tax year.
4. Can I apply for a homestead exemption if I recently bought my home?
Yes, as long as you moved into the home before January 1 of the tax year.
5. What happens if I forget to apply?
You may miss out on tax savings for the current year but can apply for future years.