top of page

All The Tea On Homestead Tax Exemptions

mac123mitch

Owning a home comes with its fair share of responsibilities, and one of the biggest is property taxes. But did you know there are ways to lower your property tax bill? Enter the Homestead Tax Exemption—one of the best tools homeowners have to save money each year. If you’re a homeowner in Texas (or thinking about becoming one), this blog will break down the essentials of property taxes, homestead exemptions, and how you can take advantage of available savings.

How Do Property Taxes Work?

Let’s start with the basics. Property taxes are levied by local governments (county, city, school districts, etc.) to fund essential services like schools, roads, emergency services, hospitals, and more. The amount you owe is based on your home’s appraised value as determined by the county appraisal district. This value is reassessed each year, which means your tax bill can fluctuate annually.


Each taxing entity (school district, city, county, and special districts) sets its own tax rate, which is then applied to the taxable value of your home. The total amount you owe is a sum of all applicable tax rates. Without exemptions, you’d pay taxes on the full value of your home. But lucky for you, Texas offers homestead exemptions to help reduce your taxable value and lower your bill


What is a Homestead Exemption?

A Homestead Exemption is a legal provision that reduces the taxable value of your primary residence, ultimately lowering your property tax bill. Think of it as a homeowner’s discount! To qualify, you must meet the following criteria:

  • The property must be your primary residence (no second homes or investment properties!).

  • You must have owned and lived in the home as of January 1st of the tax year.

  • You must apply for the exemption with your county’s appraisal district (good news—it’s free to apply!).

In addition to lowering your taxable value, homestead exemptions can also provide protections against rising tax bills. Texas law limits how much your home’s assessed value can increase each year (capped at 10% for homesteaded properties), meaning your tax bill is more predictable and manageable over time.


Available Homestead Exemptions in Texas

Beyond the standard homestead exemption, there are additional exemptions that can provide even more savings. Here are the main ones to know:

  • General Homestead Exemption – Lowers your home’s taxable value by $100,000 for school district taxes, providing significant relief.

  • Over-65 Exemption – If you’re 65 or older, you can receive an additional exemption, potentially freezing school district taxes at a lower rate. This exemption also prevents future increases in school district taxes as long as you remain in the home.

  • Disabled Person Exemption – Homeowners with disabilities may qualify for additional tax relief. This exemption is available for those who qualify under the Social Security Administration’s disability guidelines.

  • Veteran Exemptions – Disabled veterans and their surviving spouses may qualify for substantial exemptions, including full tax exemptions in some cases. The exemption amount depends on the veteran’s disability rating.

  • Local Exemptions – Some counties, cities, and special taxing districts offer additional homestead exemptions, so it’s always worth checking with your county appraisal district to see what’s available in your area.


How to Apply for a Homestead Exemption

Applying for a homestead exemption is simple, free, and absolutely worth your time. Here’s what you need to do:

  1. Visit your county’s appraisal district website (linked below for easy access!).

  2. Download and complete the Residence Homestead Exemption Application.

  3. Submit the form along with proof of residency (like your Texas Driver’s License, which must match your property address).

  4. Apply by April 30th of the tax year to receive benefits for that year.


💡 Pro Tip: Beware of companies that try to charge you for filing homestead exemptions—they’re unnecessary! Filing on your own is free and easy.


If you miss the April 30th deadline, don’t worry! You can still apply for a homestead exemption up to two years after the delinquency date of the taxes.


How to Apply for a Homestead Exemption

To make things easier, here’s a list of Texas county appraisal districts where you can access homestead exemption forms:

By County)


Final Thoughts

If you own a home and aren’t taking advantage of homestead exemptions, you’re leaving money on the table! Reducing your taxable home value means more savings in your pocket each year. If you have any questions about how property taxes work, whether you qualify for exemptions, or even if you’re thinking about buying a home, reach out—we'd love to help!

4 views0 comments

Recent Posts

See All

Comentários


Untitled design (4).png

© 2003 by Rob Mitchell at Keller Williams Realty

Information About Brokerage Services Consumer Protection Notice

  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
KellerWilliams_Realty_Central75_Logo_GRY.png

501 W President George Bush Hwy #125

Richardson, TX 75080

Each office is independently owned and operated. ​Keller Williams Realty, Inc., a franchise company, is an Equal Opportunity Employer and supports the Fair Housing Act. Each Keller Williams® office is independently owned and operated.

bottom of page