Homestead Exemption 101 – Everything You Should Know

Texas property taxes are regularly included as some of the highest across the U.S., so homeowners should take advantage of every opportunity to reduce their property tax bill. Exemptions are a great way to make the cost of property taxes fit your budget, and the residential homestead exemption is one of the most beneficial, saving Texas homeowners hundreds or even thousands of dollars every year. 

Homestead Exemptions | Home Tax Solutions

What is a Homestead Exemption? 

Most states, Texas included, offer property tax exemptions to encourage people to invest money in buying homes and business. Exemptions help save money on property taxes by reducing the taxable value of a property. For example, if your home is valued at $100,000 and you qualify for a $25,000 exemption, you’ll pay taxes as if your home is valued at $75,000. 

The amount of your homestead exemption will vary based on your taxing district, your age, veteran status, and a number of other factors. However, most homesteads receive exemptions of at least $25,000 as a school tax exemption. Additional reductions are available from special taxing districts, county discretion, and other optional exemptions. If you’re over the age of 65, disabled, or a veteran, you are likely eligible for even more exemptions. 

Am I Eligible? 

Homestead exemption eligibility only requires two factors. First, you must own the home. Second, the home must be your primary place of residence as of January 1st. If you answered yes to both of these, you should apply for a homestead exemption. You can begin applying on January 1, and, in most counties, the application deadline is April 30.  

How Do I Apply? 

To get started, you’ll need to find and complete the Texas residential homestead exemption application form and/or the form that is specific to homestead exemption in your county. To determine which form(s) to complete, contact your county tax assessor collector. As part of the application, a number of support documents will be requested. Take care to include all of these documents with your application. If you have questions, reach out to your tax assessor collector or the contact listed on the application form.

Can Home Tax Solutions Still Help Me Repay My Property Taxes? 

Home Tax Solutions Team

Even after your homestead exemption, you may find yourself struggling to keep up with the annual costs of your property taxes. As long as your current home taxes and penalties exceed $2,000, you may be eligible for a property tax loan. It’s easy to get started! Simply complete our online form or call any of our Texas Home Tax Solutions locations. With offices throughout the state, we proudly support residents of all 254 Texas Counties.