How Residential Homestead Exemptions Can Save You Money on Your Texas Property Taxes

As a homeowner in Texas, property taxes can take up a significant portion of your budget. However, did you know that you may be eligible for residential homestead exemptions that could help lower your tax bill? In this guide, we'll provide you with everything you need to know about residential homestead exemptions in Texas.

What are Residential Homestead Exemptions?

Residential homestead exemptions are a type of property tax relief available to homeowners in Texas. Essentially, a homestead exemption allows part of your home's value to be excluded from taxation, which in turn lowers your property taxes. Depending on the type of exemption you qualify for, you may be able to reduce your property tax bill by thousands of dollars each year.

Who Qualifies for Residential Homestead Exemptions?

To qualify for a residential homestead exemption in Texas, you must meet certain requirements. First, the property in question must be your primary residence. This means that you must own the property and use it as your main dwelling as of January 1st of the tax year in question. Second, you must be an individual owner, meaning that the property cannot be owned by a corporation or business entity.

What Types of Residential Homestead Exemptions are Available in Texas?

Texas offers several types of residential homestead exemptions to eligible homeowners:

• 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.
• Age 65 or older and 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.
• Optional percentage exemptions: Any taxing unit, including a city, county, school, or special district, may offer an exemption of up to 20% of a home's value.
• Optional age 65 or older or disabled exemptions: Any taxing unit may offer an additional exemption amount of at least $3,000 for taxpayers age 65 or older and/or disabled.

How Do I Apply for a Residential Homestead Exemption in Texas?

To apply for a residential homestead exemption in Texas, you must complete an Application for Residential Homestead Exemption and provide supporting documentation to the appraisal district where your property is located. The deadline for filing the application is April 30th of the tax year for which you are applying. If you miss this deadline, you may still file a late application up to two years after the delinquency date.

Can I Keep my Residential Homestead Exemption if I Move Away Temporarily?

If you temporarily move away from your home, you may still be able to keep your residential homestead exemption if you intend to return to the home and are away for less than two years. You may also be able to keep your exemption if you are in military service or live in a facility providing services related to health, infirmity, or aging.

In conclusion, residential homestead exemptions can provide significant tax relief for eligible homeowners in Texas. To find out if you qualify and how to apply, contact your local appraisal district or a tax professional for guidance. By taking advantage of homestead exemptions, you could potentially save thousands of dollars on your property taxes each year.