Texas Homestead Exemption

 

What is Texas Homestead Exemption and when a homeowner qualify for homestead exemptions

 

A homestead exemption reduces taxes by lowering a home's taxable value. All school districts offer a $15,000 homestead exemption, and some taxing units offer a percentage exemption of up to 20% of a home's assessed value. Homeowners can lower their property taxes by applying for these exemptions for which they are eligible. You must OWN your own home and occupy it as your principle residence on January 1. You can have only ONE principle residence and ONE homestead exemption.

 

Texas Homestead Exemption for homeowners of age 65 or older

 

If you are age 65 or older, the January 1 ownership and residency are not required for the age 65 homestead exemption. Homeowners who are 65 years or older may qualify for a $10,000 homestead exemption for school taxes, in addition to the $15,000 exemption for all homeowners. Once you receive an over 65 homestead exemption, you automatically qualify for a tax ceiling on your school taxes. If you don't add any improvements (like adding a garage or game room to the house after you have established a tax ceiling) your school taxes will never increase from the amount you owed when you first qualified.

 

What happens when a homeowner receiving homestead dies

 

When a homeowner who has been receiving the school tax ceiling dies, the ceiling amount will transfer to the surviving spouse if the survivor is 55 years of age or older. The surviving spouse must apply to the appraisal district for the tax ceiling, it will NOT transfer automatically.

 

Texas Homestead Exemption for disabled homeowners

 

A homeowner who meets the definition of a totally disabled person under state law on January 1 or he/she is 55 years old and blind and can't engage in your previous work because of the blindness, ordinarily qualifies for a disability homestead exemption. (You may NOT claim BOTH over 65 and disabled person exemptions.)

 

How and when you can apply for Homestead Exemption

 

To apply for homestead exemptions you need Application for Residential Homestead Exemption. The form must be completed and returned to the appropriate appraisal office not before January 1 but no later than February 1st. If you are 65 or older or disabled, you qualify for the exemption on the date you become 65 or become disabled. Homeowners who are 65 or older or disabled must apply for the exemption no later than one year from the date they qualify or one year after the delinquency date, whichever is later.

Once you receive a homestead exemption, you will not need to apply again unless the appraisal office asks you to do so in writing. If you move to a new home, you will need to file a new application.

 

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