Residential homestead exemptions can help people lower their property taxes and protect their domicile and up to 20 acres of land by removing part of the value from their primary residence’s assessed real estate value.
Determining how the Texas homestead exemption applies to your situation can be complex. This blog aims to provide information about Texas homestead exemptions.
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Qualifying For a Texas Homestead Exemption
Not all homes qualify for the homestead exemption; only the property owner’s primary residence does. The home must meet the state’s definition of a residence homestead (a structure designated for and occupied as a residence). Finally, the owner on the deed must be an individual, not a corporation or other business entity. The owner must occupy the property as their primary residence.
Types of Homestead Exemptions in Texas
You likely qualify for a Texas homestead exemption if you fall into one of the following categories:
- General Residence Homestead Exemption: This is a general exemption for taxpayers who own and reside on the property as of January 1st of that year. It is usually available every year that the property owner claims the property as their primary residence.
- Person Age 65 or Older (or Surviving Spouse) Exemption: Available for property owners the year they turn 65. This also limits the amount of school taxes the owner pays each year, effectively freezing them as long as the property owner doesn’t add a pool, garage, or other specific improvements. This exemption may be transferred if the property owner moves to a different Texas school district.
- Disabled Person (or Surviving Spouse) Exemption: This exemption is available for those who meet the Social Security Administration’s standards for disability and who are determined to be unable to sustain gainful employment for at least 12 months.
- 100 Percent Disabled Veteran (or Surviving Spouse) Exemption: Disabled veterans with a 100% disability rating due to a service-connected disability receive an exemption from taxation of the total appraised value of the homestead.
- Disabled Veteran or Survivor Exemption: Disabled veterans who do not have a 100% disability rating may receive a partial exemption based on the percentage of their disability rating. It’s open to Texas residents who are veterans and have a service-connected disability rating of at least 10%.
- Donated Residence of Partially Disabled Veteran (or Surviving Spouse): A partial exemption for property donated to veterans by a charitable organization (that the veteran now owns). The exemption is determined by the percentage of the veteran’s service-connected disability as long as the veteran’s disability rating is 10% or higher.
- Surviving Spouse of an Armed Services Member Killed in Action Exemption: Surviving spouses of active military members killed in action are eligible for a 100% property tax exemption on their residence and may receive it until they remarry.
- Surviving Spouse of a First Responder Killed in the Line of Duty Exemption: Surviving spouses of military members killed in the line of duty are eligible for a 100% property tax exemption until they remarry.
Details For Filing a Homestead Exemption in Texas
Applying for a Texas Homestead Exemption is fairly straightforward: submit your application and supporting documents online, via mail, or in person to the County Clerk’s Office in the county in which you reside.
Action on your application will occur within 90 days of its submission. If you do not qualify, you will receive notification via mail along with instructions for an opportunity to protest the state’s decision.
Christene Krupa Downs of Krupa Downs Law, PLLC does not practice real estate law, and this blog on homestead exemptions is for informational purposes only.
