What is a Homestead Exemption and How Do You Apply?

Texas homestead exemptions: did you know these powerful tools can dramatically slash your property taxes and put thousands back in your pocket? Owning a home in the Lone Star State comes with incredible advantages, but those property bills can sting. This guide unveils the secrets of homestead exemptions, explaining how they work, what you qualify for, and the clear steps to claim your savings. From standard school tax exemptions to specific benefits for seniors and individuals with disabilities, this educational resource empowers you to navigate the system and optimize your Texan homeownership experience. Let's dive into the details and unlock your financial freedom, one exemption at a time!

What is a Homestead Exemption? 

To put it simply, it's a property tax exemption that removes part of your home's value from taxation to lower your taxes. A homestead exemption can potentially help you save thousands--all by lowering your tax bill on your primary residence.

Say your home is appraised at $300,000, and you qualify for a $40,000 exemption (this is the amount mandated for school districts), you will pay taxes on the home as if it was worth only $260,000.

What Homestead Exemptions are Available?

  • School Taxes: All residence homestead owners are allowed a $40,000 residence homestead exemption from their home's value for school taxes.
  • County Taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead is allowed to receive a $3,000 exemption for this tax. If the county grants an optional exemption for homeowners age 65 or older or disabled, the owners will receive only the local-option exemption.
  • Age 65 Or Older & Disabled Exemptions: Individuals age 65 or older or disabled residence homestead owners qualify for a $10,000 residence homestead exemption for school taxes, in addition to the $40,000 exemption for all homeowners. If the owner qualifies for both the $10,000 exemption for age 65 or older homeowners and the $10,000 exemption for disabled homeowners, the owner must choose one or the other for school taxes. The owner cannot receive both exemptions.

Check out your county's appraisal district for more exemptions you potentially qualify for.

What are the Requirements to Apply?

You must be an individual homeowner (not a corporation or other business entity), occupy your home, and use the home as your primary residence. Note: All required documents, such as a copy of your driver's license, will need to match the address of the residence you're applying for. (Update your DL address ASAP!).

How/When Do You Apply?

Ideally, you should file as soon as you move into the home. It is prorated in the year you purchased, so it could save you some money to file it immediately. Be sure to file in the county where your homestead is located by visiting the links below.

The completed application and required documentation are due no later than April 30th of the tax year you're applying for. 

 

Our team is happy to answer any questions you may have on this process. Give us a call or email us today! 

512-537-4977 | info@rjfteam.com