$4,078. That’s how much the typical property tax bill is for a Harris County, Texas homeowner.
That’s a pretty big expense, especially for first-time homeowners who may need a guide to property taxes to deal with such unexpected costs.
Fortunately, Texas provides some significant property tax exemptions that can reduce your tax liability. One of the best options is the Texas homestead exemption, which can potentially save you thousands in taxes. This article will show you how to save money by applying for an exemption before the Harris County deadline.
Understand What a Homestead Exemption Is
Homestead exemptions reduce the assessed value of your primary residence. Thus, you are not taxed on the full value of your home, bringing your property taxes down.
Types of Homestead Exemptions Available in Harris County
While general homestead exemptions benefit most Texas homeowners, you may be eligible for additional tax breaks based on your age and other qualifications.
General Homestead Exemption
Texas provides a general homestead exemption that requires all school districts to exempt part of qualifying homesteads from taxation. As of 2023, the exemption amount is $100,000. However, current Senate Bill 4 aims to increase this homestead exemption to $140,000.
In addition to the general homestead exemption, Harris County provides a 20% (or $5,000, whichever amount is greater) optional homestead exemption for all homeowners in the county. For example, if your home is valued at $250,000, the Harris County optional exemption lowers its taxable value to $200,000, and the Texas general homestead exemption lowers it further to $100,000.
Over-65 Homeowners Exemption
There are three exemptions for seniors in Harris County.
The state-wide over-65 exemption, often called the senior exemption, grants homeowners ages 65+ an additional $10,000 exemption.
Harris County also has a school tax ceiling or freeze for those 65 and older. School district taxes will not increase for qualified recipients unless they make improvements to their homes.
The county and other taxing units can even provide additional exemptions of $3,000 or more. Call the HCAD (Houston Central Appraisal District) tax office at 713-957-7800 to see if you qualify for this additional tax exemption.
Disability Exemption
Property owners who qualify as disabled under the definition of the Social Security Administration receive a $10,000 homestead exemption for school taxes. Other taxing units can also provide an optional exemption of at least $3,000.
Veteran Exemption
If you have a disability connected to your time in the U.S. Armed Services, you can qualify for the disabled veteran exemption. This offers varying levels of tax relief based on your veteran’s disability rating. If you're determined to be 100% disabled, you will receive a 100% exemption.
Eligibility Requirements for Claiming Homestead Exemptions
To qualify for a general homestead exemption in Texas, you must be an individual homeowner. Homes owned by corporations or business entities don't qualify.
Only your principal residence can use a homestead exemption. If you own other properties inside or outside Texas, they won't qualify for an exemption.
Important Application Deadlines
The deadlines for general homestead, over-65, and disabled exemption applications vary, so keep the following dates in mind.
Annual Application Deadline
Harris County's regular residential homestead exemption forms are due between January 1 and April 30. Early application forms aren't accepted.
If you miss the April 30 deadline, Harris County will still accept late applications up to two years after the original deadline. Ownwell can help you file these retroactive homestead exemptions!
Special Deadlines for Over-65 and Disabled Homeowners
If you're a homeowner who just turned 65, you can apply for the over-65 homeowners exemption that year. Disabled homeowners can also apply for a disability exemption the year they became disabled.
The deadline for the application is the first anniversary of the date you qualified for the exemption. If you purchased a different home and are already eligible for the over-65 or disability exemption, you have one year from the day you moved into your new home to apply for the exemption.
How To Apply for a Homestead Exemption
When applying for the Harris County Appraisal District's homestead exemption, you need different types of documentation, depending on which exemption you qualify for.
Required Documentation for Application
You’ll need a Residence Homestead Exemption Application (Form 50-114), which you can obtain from the Texas Comptroller’s website.
Include a copy of a valid Texas driver’s license or Texas-issued personal ID showing your homestead address. If you're exempt from this, fill out Section 4: Waiver of Required Documentation.
If you’re applying for the disability exemption, provide proof of your disability.
If you're the surviving spouse of a homeowner with the over-65 exemption and you're 55 or older, you can receive your spouse’s exemption. Include a copy of your spouse’s death certificate to qualify.
Refer to Form 50-114 instructions for any additional required documentation.
Step-by-Step Application Process
Fill out all required application sections and select all the exemptions you're applying for. If you’re filing a late application, check the box at the top of the form.
File your homestead exemption form and all required documentation with the Harris County Appraisal District office. Forms can be submitted online, in person, or by mail.
What To Do if Your Application Is Denied
Contact the local appraisal district to review the reasons for denial. See if you made any mistakes with the application or if you need additional documents to show your eligibility. If you feel you’re still qualified, you can file an appeal.
FAQs
Different regulations affect how you apply for and maintain a homestead exemption in Harris County. Consider the following scenarios.
What happens if I move to a new home?
If your new home already has a general homestead exemption when you move in, the exemption will remain in place for that tax year. However, you must file a new application in your name the following year to keep receiving the exemption.
Check to see if your new home’s previous owners had a “homestead cap” that kept property taxes from rising. If they did, your property taxes may increase the year after you moved into your new home. This is because your “homestead cap” won’t take effect until the second year after you receive your homestead exemption.
The HCAD will send you a postcard every year to confirm your homestead exemption. If the information on the postcard is correct, your exemption will automatically renew. If you do not receive a postcard by mid-January, check your online HCAD account to confirm your homestead exemption is in place. If the postcard was returned as undeliverable, HCAD may cancel your exemption. Notify HCAD immediately if your exemption is not listed on your account.
If your home’s previous owners received the over-65 or disabled exemption, these exemptions will stay in place for the rest of the tax year. However, your property taxes will rise if the previous owners transfer their exemptions to another homestead. If you qualify for the over-65 or disability exemption, be sure to apply as soon as possible to get your tax break.
Can I receive multiple exemptions at the same time?
You can receive a general homestead exemption from the state of Texas and any optional homestead exemptions offered by your county simultaneously. However, if you qualify for the over-65 and disabled exemptions, you cannot use both in the same tax year. You must choose one or the other.
Can you file a homestead exemption online in Harris County?
Yes. You can apply for your homestead exemption using the Harris County Appraisal District (HCAD) Information and Exemption App. The app lets you submit an exemption application and provide images of your driver’s license. You can also use the app to check the status of your application.
Getting Help With Your Homestead Exemption in Harris County
If you’re ready to lower your Harris County property taxes, Ownwell can show you all the exemptions you qualify for.
We’ll also help file your application and get any refunds you may be due. This is particularly interesting for those filing retroactively to claim exemptions from the past two years, which requires additional paperwork and time.
In addition, we monitor your exemption status to keep your property taxes from rising and help you protest your property taxes!
Learn how much you can save today!
