Texas Homestead Exemption: What It Is and How to Apply

If you buy a home in Texas and live in it, one of the first things to do after closing is apply for the Texas homestead exemption. It is a reduction in the value your home is taxed on, it costs nothing to apply, and it is easy to miss when you are surrounded by moving boxes. Here is what the Texas homestead exemption is, what it does for your tax bill, who gets the extras, and when and where to apply.

A homestead is the primary place of residence you own and live in, including the land and the buildings. The Governor's office notes that a household can have only one homestead in Texas, and that there is no limit on the property's value to qualify.

A homestead exemption reduces the value of your home when property taxes are calculated. In the words of the state's presentation on the topic, people who qualify "will owe less in annual property taxes." It does not remove your tax bill, and it does not apply to a second home or a rental.

How much is the Texas homestead exemption?

For school district taxes, the Comptroller says school districts must provide a $140,000 exemption on a residence homestead, with an additional $60,000 for people 65 or older or disabled. Other taxing units may offer their own exemptions, so check your county.

When is the deadline to apply?

The application form says to file no later than April 30 of the year you want the exemption. A late application may be filed up to one year after the tax delinquency date. If you qualify for the age 65 or disability exemption, you must apply no later than the first anniversary of the date you qualify.

Does it cost money to apply?

No. The Governor's office says the application is free, and you file it with your county appraisal district. You do not need to pay anyone to file it for you.

Do I have to apply every year?

Not usually. The state application says that once the chief appraiser grants the exemption, you do not need to reapply annually unless the chief appraiser requires it. You do have to notify the appraisal district in writing when your right to the exemption ends.

Does the homestead exemption limit how much my taxes can go up?

It starts a 10 percent limit on increases in the home's appraised value, beginning the tax year after you first qualify. It does not cap your tax rate or your whole tax bill. People 65 or older or disabled also get a ceiling on school taxes.