Free Guide to Texas Homestead Exemption Information

What Is the Texas Homestead Exemption and How Does It Work

The Texas Homestead Exemption is a property tax reduction program available to homeowners in Texas. When you own a home as your primary residence, you may reduce the taxable value of that property, which lowers the amount of property tax you owe each year. This exemption applies to school district taxes, county taxes, city taxes, and other local taxing units.

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Here's how the process works in basic terms: Property taxes are calculated by multiplying your home's assessed value by the local tax rate. The homestead exemption reduces the assessed value used in this calculation. For example, if your home is assessed at $250,000 and you receive a homestead exemption, the taxing units may only use $225,000 (or another reduced amount) when calculating your taxes. This means you pay taxes on a lower value, resulting in lower overall tax bills.

Texas offers two main types of homestead exemptions. The first is a standard exemption that applies to all homeowners who own their home as a primary residence. The second involves additional exemptions for homeowners who are age 65 or older, or who are disabled or surviving spouses of disabled individuals. These additional exemptions provide greater tax reductions for those who meet specific criteria.

The exemption amount varies by location. Different counties and school districts in Texas set their own exemption amounts within state guidelines. Some areas may exempt $25,000 of your home's value, while others may exempt $50,000 or more. The specific amount depends on your location within Texas.

One important feature of Texas homestead exemptions is that they provide tax protection for homeowners age 65 and older. Once you turn 65, your property taxes are frozen at the amount you paid in the year you turned 65. This means even if your property value increases significantly, your tax bill cannot increase due to that property appreciation—though taxes may still increase if tax rates change.

Practical Takeaway: The homestead exemption reduces how much property tax you owe by lowering the taxable value of your primary residence. Understanding the specific exemption amount available in your area helps you estimate potential tax savings.

Who Can Claim a Homestead Exemption in Texas

To claim a homestead exemption in Texas, you must meet certain basic requirements. The most fundamental requirement is that you own the property and it must be your primary residence. This means you live there as your main home, not as a vacation property, rental property, or investment property. If you own multiple properties, you can only claim the homestead exemption on one of them—the one where you actually live.

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You must be a resident of Texas to claim the exemption. Most homeowners who own and occupy their home in Texas automatically meet this requirement. However, if you've recently moved to Texas from another state, you may wonder about timing. Generally, you can claim the exemption in the year you move to Texas if you own and occupy the home by January 1 of that year.

Age-related exemptions have additional requirements. To claim an exemption as someone age 65 or older, you must be at least 65 years old on January 1 of the year you're claiming the exemption. Disabled homeowners can claim additional exemptions if they have a disability determination from the Social Security Administration or the Railroad Retirement Board. Surviving spouses of disabled individuals may also claim exemptions if they meet specific requirements related to their spouse's death date and their own age.

The homestead exemption applies regardless of your income level. Unlike some government programs, there's no maximum income threshold that would disqualify you. Whether you have a high income or a modest one, you may claim the exemption if you meet the ownership and occupancy requirements.

Certain situations affect your ability to claim the exemption. If you own the home as part of a trust, you may still claim it if you're the person who actually lives there. If the property is jointly owned, the person living there may claim the exemption. However, if you're leasing the property from someone else (rather than owning it), you cannot claim the homestead exemption.

Non-citizen residents can also claim homestead exemptions. You don't need to be a U.S. citizen to claim the exemption—you only need to own and occupy the property as your primary residence in Texas.

Practical Takeaway: You're likely eligible if you own and live in the home as your primary residence and are a Texas resident. Age 65+ homeowners and disabled homeowners may have additional exemption options available.

The Process for Obtaining Your Homestead Exemption

Getting a homestead exemption in Texas involves contacting your local appraisal district office. Each county in Texas has an appraisal district that handles property assessments and homestead exemptions. To find your appraisal district, you can search online for "[Your County Name] Appraisal District" or check your property tax statement, which typically lists contact information.

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The main way to claim the exemption is by filing a form with your appraisal district. Texas uses a form called the Homestead Exemption Application. You'll need to provide information about yourself, your property, and your occupancy of the home. The form asks for basic details like your name, the property address, and the date you began living there as your primary residence.

Most Texas appraisal districts allow you to submit the exemption application in several ways. You can visit the appraisal district office in person and submit the form directly. You can also mail the completed form to the district office. Many districts now accept online submissions through their websites. Some districts may accept applications by email. Check with your specific appraisal district about which methods they offer.

Timing matters when filing for the exemption. To receive the exemption for a particular tax year, you typically need to file the application by the deadline set by your appraisal district. Most districts have April 30 as the deadline, though some may differ. If you miss the regular deadline, some districts allow late filings, though there may be additional requirements. Even if you can't file by April 30, it's still worth contacting your appraisal district to ask about filing a late application.

For new homeowners, you should file the exemption application in the year you move into the home. If you purchased your home in November and moved in before January 1, you can typically file for the exemption in that same tax year. This means filing in the following year during the regular application period.

After you file the exemption application, the appraisal district will review your submission. They may contact you if they need additional information. If your application is approved, the exemption will be applied to your property tax bill. You'll typically see the reduced tax amount on your next property tax statement.

Practical Takeaway: Contact your county appraisal district, obtain a Homestead Exemption Application form, complete it with your property and occupancy information, and submit it before the April 30 deadline (or your district's specific deadline date).

Understanding Exemption Amounts and Tax Savings

The amount of tax reduction you receive from a homestead exemption varies significantly depending on where you live in Texas. State law allows each appraisal district to set exemption amounts within guidelines, which means different counties and school districts offer different dollar amounts of exemptions.

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School district exemptions are often the largest. For example, many Texas school districts exempt between $25,000 and $50,000 of a home's assessed value. Some larger school districts may offer exemptions of $75,000 or more. The specific amount depends on the decisions made by each individual school district. Your property tax statement or the school district's website can tell you the exact exemption amount for your area.

City and county exemptions typically range from $0 to $25,000, with many municipalities offering smaller amounts than school districts. Some cities choose not to offer homestead exemptions at all. Special taxing districts (such as water districts or hospital districts) may also offer exemptions, though many do not. The total exemption you receive is the combination of exemptions from all taxing units that serve your property.

To understand your potential tax savings, you need to know three pieces of information: your property's assessed value, the exemption amount offered by each taxing unit, and the tax rate for each unit. Here's a simple example