Exemptions- What Are They and How Do They Effect My Taxes?

1.    The Residence Homestead Exemption

Homestead Exemptions decrease part of your home’s value from taxation, which lowers your total annual property tax amount.

You may apply for the homestead exemption on your principal residence. To qualify as a homeowner’s principal residence, a home must meet the definition of a residence homestead: The home’s owner must be an individual (for example, not a corporation or other business entity) and use the home as his or her principal residence on January 1 of the tax year.

For Example: If you close on a home on March 15^th, 2019 you must wait until the following year, 2020 to apply for the homestead exemption.

How Does The Residence Homestead Exemption Effect MyTaxes?

The Residence Homestead Exemption will save you money annually on your taxes.
For example, if your home is assessed at $200,000, and you qualify for a $25,000 exemption (this is the amount mandated for school districts), you will pay School Taxes on the home as if it was worth only $175,000.

How Do I Apply For The Residence Homestead Exemption and How Often?

You may file an Application for Residential Homestead Exemption (PDF) with your appraisal district for the $25,000 homestead exemption up to two years after the taxes on the homestead are due. Once you receive the exemption, you do not need to reapply.

What Is The Deadline For Filing For A Homestead Exemption?

January 1st thru April 30th

May I Continue To Receive The Residence Homestead Exemption On My Home If I Move Away Temporarily?

If you temporarily move away from your home, you may continue to receive the exemption if you do not establish a principal residence elsewhere, you intend to return to the home, and you are away less than two years. You may continue to receive the exemption if you do not occupy the residence for more than two years only if you are in military service serving inside or outside of the United States or live in a facility providing services related to health, infirmity or aging.

If I Own Only 50 Percent Of The Home I live In, Do I Qualify For The Residence Homestead Exemption On The Home?

Yes. However, if you qualify for a homestead exemption and are not the sole owner of the property to which the homestead exemption applies, the exemption you receive is based on the interest you own. For example, if you own a 50 percent interest in a homestead, you will receive only one-half, or $12,500, of a $25,000 homestead offered by a school district.

Can You Have A Homestead Exemption On Two Different Properties?

No.

2.    The Age 65 and Over Exemption

To be eligible for the Age 65 and Over Exemption, you must own and occupy the property. This property must be your principal residence. If there are more than 1 owner listed only one of the listed owners must be 65 years of age and can apply at any time during the year, they turn 65. There is no January 1 ownership and residency Required like there is for the Residence Homestead Exemption.  Requirements are a Texas issued Driver License or Identification card showing your current physical address and DOB. The Age 65 and Over Exemption qualifies individuals an additional $10,000 exemption.

For example, if your home is assessed at $200,000, and you qualify for a $25,000 Residence Homestead Exemption and the $10,000 Age 65 and Over Exemption, you will pay School Taxes on the home as if it was worth only $165,000.

** Homeowners 65 and older can Freeze property taxes charged by school districts. After you apply for and receive the Age 65 and Over Exemption, your school taxes are automatically frozen at the amount calculated for the first full year of qualification. This means your school district taxes will not go up even if your property values do.  If you forget to file this Exemption at the time you turn 65 you can apply for it up to two years previous-ex: you forgot and filed in 2019 but you qualified in 2017 and owned/occupied the home in 2017, you would then qualify for 2017.

3.    The Disabled Person Exemption

You must meet the criteria of a disabled person to qualify for the Disabled Person Exemption. If you are considered disabled for purposes of payment of disability insurance benefits, or unable to work, you may qualify for this exemption. You must own and occupy the property as your principal residence. You cannot receive both the Over 65 and the Disabled Person Exemptions. You can receive both the Residence Homestead Exemption AND the Age 65 and Over OR the Disabled Person Exemption.  You can Not Receive all 3. The Disabled Person Exemption qualifies individuals an additional $10,000 exemption. Requirements are a letter showing the effective date of disability and a Texas issued Driver License or Identification card showing your current physical address. There is no January 1 ownership and residency Required like there is for the Residence Homestead Exemption. The Exemption is applied per effective date shown of the letter of disability and year that you occupy the residence.

4.    The 100% Disabled Veteran Exemption

100% Disabled Veterans in Texas are fully exempt from all property taxes.  You must be rated as a 100% Disabled by the Veterans Affairs Administration to apply for this exemption. The property must be your principal residence and you may not claim homestead on another property. Requirements are a copy of your VA Letter showing the effective date of the 100% Disabled Veteran entitlement and a Texas issued Driver License or Identification card showing your current physical address. There is no January 1 ownership and residency Required like there is for the Residence Homestead Exemption. The Exemption is applied per effective date shown on the VA Letter of Disability.  The latest year that the exemption can be applied is 2016.

*** Additional Disabled Veterans Exemptions:

1. 10% to 29%  –     up to $5,000 of the assessed value
2. 30% to 49% –      up to $7,500 of the assessed value
3. 50% to 70% –     up to $10,00 of the assessed value
4. 70% up to 99% – up to $12,000 of the assessed value

Additional Information:

If someone is selling their home and they currently have any of the following exemptions:  Over 65, Disabled, 100% Disabled Veterans and they are moving into another home within Texas that will be their primary residence they can port over the Exemptions to their new residence. Homestead qualifications will always be that they own/occupy as of January 1^st of the year requesting.

• In what combinations can exemptions be grouped? Any of the below combo’s could have a surviving spouse except the Disabled Person, those listed below are the most common.
  • Homestead, Disabled Person, Disabled Veteran, Disabled Veteran 100%
  • Homestead, Disabled Veteran
  • Homestead, Age 65 and Over
  • Homestead, Age 65 and Over, Disabled Veteran, Disabled Veteran 100%,
  • Homestead, Age 65 and Over, Disabled Veteran
  • Homestead, 100% Disabled Veteran
• If a Home Owner is selling their home, and they have Exemptions on the property, and they are moving out of the state of Texas or moving into an Assistant Living Facility and not porting the Exemptions, the Exemption will stay on the home and the new home Buyer will benefit for that current tax year. However, they will need to apply for the specific applicable Exemption come the following year.