Homestead and Tax Exemption

The Texas Homestead Tax Exemption is a benefit provided to homeowners in the state of Texas. It offers property tax relief by reducing the taxable value of a person’s primary residence, known as their homestead. The exemption helps to lower the overall property tax burden for eligible homeowners. Here are some key points to understand about the Texas Homestead Tax Exemption:

Eligibility: To qualify for the Homestead Tax Exemption, you must meet certain criteria:

    • You must own the property as your principal place of residence on January 1 of the tax year.
    • You must be an individual (not a corporation or partnership).
    • You must file an application with the county appraisal district where the property is located.
    • You must provide all necessary documentation and meet any additional requirements set by the county.

Tax Relief: The Homestead Tax Exemption offers two types of tax relief:

    • School Taxes: The exemption provides a reduction in the appraised value of the homestead for school district property taxes, up to $25,000. This means that the taxable value of the property is reduced by this amount, resulting in lower property tax liability for school taxes.
    • County Taxes: In addition to the school tax relief, the Homestead Exemption also provides a percentage reduction in the appraised value for county taxes. The exact percentage varies depending on the county, but it is typically between 10% and 20%.Application Process: To claim the Homestead Tax Exemption, you need to file an application with the county appraisal district between January 1 and April 30 of the tax year. You can obtain the application form from the county appraisal district’s website or office. The application requires you to provide information about the property and your ownership status.

Limitations and Transferability: The Homestead Tax Exemption applies only to your primary residence, not to investment or rental properties. Additionally, the exemption is not automatically transferred when you buy or sell a property. The new owner must file a new application to claim the exemption.

Additional Exemptions: Apart from the Homestead Tax Exemption, Texas offers other property tax exemptions, such as exemptions for disabled veterans, elderly homeowners, and disabled individuals. Each exemption has its own eligibility criteria and application process.