DCH's Guide to the Texas Homestead Property Tax Exemption
Owning a home is increasingly expensive, and for reasons beyond supply, demand, and inventory. Some barriers, including tax burdens, homeowners insurance, and property taxes, make homeowning even less affordable. Lawmakers offer exemptions to alleviate the tax burden. A homestead property tax exemption allows you to claim your primary residence in a county and state and get benefits. DCH would like to offer this resource to help explain the benefits, eligibility requirements, and ways to ensure you don’t lose this valuable exemption. Your renewal notice may arrive in the mail, and you do not want to throw it away or miss it! There are very real savings in homestead tax exemptions.
What is the Homestead Property Tax Exemption?
The Texas Homestead Exemption reduces homeowners' taxable value of their primary residence, which lowers an overall property tax bill. The general residence homestead exemption applies to most homeowners, but additional exemptions are available for individuals over 65, those with disabilities, and veterans.
Benefits of the Homestead Exemption
Lower property taxes are just one of the benefits of the homestead property exemption. You are able to reduce the taxable value of your home by up to $40,000 for a general exemption, however you are also protected from rising taxes. The exemption caps annual increases in the
Eligibility
For those who have not applied for the exemption, whether you just purchased a house or have moved, to qualify for the homestead exemption, you must meet the following criteria:
Ownership: You must own the property on January 1 of the tax year for which you’re applying.
Primary Residence: The property must be your primary residence. You cannot claim the exemption on multiple properties.
Texas Residency: You must provide proof of Texas residency, such as a driver’s license or state ID with the same address as the property.
The next step if you qualify is to gather documents, including your Texas driver’s license or state ID and proof of property ownership (e.g., deed or property tax statement). Then, complete the downloadable form from your county appraisal district’s website. Then submit via mail or deliver completed forms to your county appraisal district office by April 30.
Maintaining Your Exemption
Once you are approved be sure that you keep your information updated. Notify your county appraisal district of changes to your primary residence or mailing address. Do not rent your home, renting or using the property for business purposes can disqualify you. Reapply when you have moved. As we are coming up on the deadline, you may receive correspondence about your status, if your exemption is under review. You do have the option to file an appeal.
Resources for Homeowners
We believe in empowering homeowners with knowledge and resources. Here are some helpful links: Texas Comptroller Homestead Exemption Overview, Dallas County Appraisal District, Harris County Appraisal District. DCH’s mission is to create opportunities for affordable housing and promote financial security through homeownership. Let’s work together to make homeownership in Texas sustainable and affordable!