Is home ownership more expensive than you anticipated or dragging on your budget? Fortunately, at Ownwell, we’ve paired local tax experts with cutting-edge software to discover ways to save both residential and commercial property owners money.
One of the best ways to save is to ensure you have all of the homestead exemptions that you qualify for. Here’s how to check your residence homestead exemption status in Texas.
Understanding Homestead Exemptions in Texas
A Texas homestead exemption saves homeowners money on property taxes by reducing a portion of their home's assessed value from taxation. This requires that you own part of the property, that it’s your primary residence, and that you’re a resident of Texas.
There are also additional exemptions for those who are disabled, 65 and older, or veterans, and we’ll help you understand how those work.
Types of Homestead Exemptions Available
Homestead exemptions are designed to offer property tax relief for residents. Only the general homestead, 65+ exemption, and inheritance exemptions apply to school district taxes.
General homestead exemption: Applies to school districts' taxes and decreases the taxable amount of your home by $100,000.
Over 65 exemption: There are several benefits available for those 65 and older. These include an extra $10,000 from school district taxes, a positive local exemption, and a possible freeze on certain taxes after the year you qualify.
Disability exemption: Similar to the age exemption, the property's assessed value is decreased by $10,000 for school district tax purposes.
Veteran exemption: This is available to any U.S. Armed Forces veteran who has been honorably discharged. The amount is dependent on the disabled veteran's disability rating.
Eligibility Criteria for Texas Homestead Exemptions
Texas has strict criteria to ensure that property owners don’t exploit homestead exemptions.
Age Requirements
The property owner must be 65 or older to qualify for the senior exemptions.
Disability Requirements
Anyone with a qualified disability under the Federal Old-Age, Survivors and Disability Insurance Act administered by the Social Security Administration is eligible for a homestead exemption, as long as they're eighteen or over.
Ownership and Residency Requirements
The ownership and residency requirements for a homestead exemption include the following:
You must own (or partially own) the home you claim as a homestead.
The homestead must be your primary personal property and residence.
You must live on the property on or before January 1 of the year you request the exemption and be a resident of Texas.
Application Process for Homestead Exemption in Texas
Applications can be made in person, online, or by mail. They are done through your county’s appraisal district (CAD). Exemption applications for the following year are due April 30th of the current year. Applications require the following documentation:
Proof of principal residence: This could be a Texas identification card or driver’s license that has the home address of your homestead.
Social security number: In some cases, you do need your Social Security number.
Proof of ownership: Official documentation, such as a deed, is required to show you own the home.
Proof of disability or age: Documentation proving age or disability status is required for your exemption application.
How to Check Your Homestead Exemption Status in Texas
Once you’ve applied for your exemption, expect an answer within one to three months. During this time, you can check your Texas homestead exemption status with your county appraisal district (CAD), do an online property search, check the Texas Comptroller’s website for additional information, verify in the local property records, or double-check your property tax exemptions statement.
Importance of Verification Requirements
The integrity of the property tax system relies on accurate documentation and exemption records. This ensures the exemption goes to the right people, prevents misuse and fraud, and maintains fairness in the tax system.
Deadlines for Reapplication and Renewal
If you’re reapplying for an exemption or renewing a current exemption, April 30th is still the deadline. If you miss the deadline, your exemption might still be applied retroactively.
Annual Reapplication Criteria
In 2023, Texas passed a new state law that requires CADs to ensure that property owners remain eligible to claim their homestead exemptions every five years. They'll do this by mail. However, some counties, like Harris, send annual postcards to help verify residents' exemption status.
There is no annual reapplication for the general homestead exemption. If you qualify under the age or disability status, you only need to submit the exemption form again if your eligibility changes. The surviving spouse exemption only needs to be filed once.
Otherwise, you only need to reapply if you change properties.
Unsure if you’re eligible for a homestead exemption or have questions about exemptions or how to lower your property taxes? At Ownwell, we can handle all of the paperwork for you, especially for Texans who qualified for specific homestead exemptions from the past two years but never applied.
We'll not only help you retroactively apply for your exemptions, but will also appeal your property taxes on your behalf. Best of all, you only pay if we save!
See how much you can save on property taxes!
