If you’re a homeowner in Texas—or planning to become one—understanding the homestead exemption can save you hundreds or even thousands of dollars a year. But what exactly is it, and how do you make sure you’re getting all the savings you’re entitled to? Let’s break it down.
❓ What is a Texas Homestead Exemption?
A homestead exemption reduces the amount of your home’s value that’s subject to property taxes. For example, if your home is worth $300,000 and you qualify for a $40,000 exemption, you’ll only pay taxes on $260,000.
❓ Who Qualifies for the Homestead Exemption?
To qualify, the home must be your primary residence as of January 1 of the tax year. You must also own the property and not claim a homestead exemption on any other property in or outside of Texas.
❓ How Much Can You Save?
Savings vary depending on your location, but every homeowner who qualifies gets:
- $40,000 off your home’s assessed value for school district taxes.
- Additional exemptions may be available from your county, city, or special districts.
- Some cities also offer a local option exemption, typically 1–20% of the home’s value.
Seniors (65+), disabled individuals, and veterans may qualify for additional exemptions that offer even more savings.
❓ How Do You Apply?
- Apply through your county appraisal district’s website.
- It’s free to apply. Don’t pay anyone to “file for you.”
- You’ll need your Texas driver’s license or ID showing the same address as your homestead.
Pro Tip: You only need to apply once. It will carry forward automatically each year as long as you live there.
❓ What Other Property Tax Breaks Exist in Texas?
- Over-65 or Disabled Exemption: An extra $10,000 off school taxes, plus potential freezes on tax amounts.
- Disabled Veteran Exemption: Ranges from $5,000 up to full exemption depending on disability rating.
- 100% Disabled Veteran or Surviving Spouse Exemption: May eliminate all property taxes.