Texas homestead exemptions allow you to take a property tax credit for a portion, or all, of your home's appraised value. Texas law allows you to only take a homestead exemption on your principal residence and certain homeowners may qualify for more than one exemption. General homestead eligibility extends an exemption from school taxes for qualified homeowners, but you may also qualify for exemptions offered to senior citizens or for a disability. Texas law allows homestead exemptions on rural and urban homes.
You can qualify for at least one homestead exemption if you own a home as an individual. Homes owned by businesses do not qualify and you can only receive a homestead exemption on your principal residence. For the property to qualify, you must own the home on Jan. 1 of the year for which you wish to receive the exemption. You can only claim a homestead exemption on one property.
School Tax Exemption
If your home qualifies as a residence homestead, you automatically qualify for an exemption from school taxes. At the time of publication, the school tax exemption allows you to deduct $15,000 from the appraised value of your home. To receive the credit, you must submit an Application for Residential Homestead Exemption with the appraisal district in your local area. If the appraisal district accepts your property for the exemption, you can typically continue to receive the credit in subsequent years without reapplying.
65 Or Older Exemption
Texas offers an additional homestead exemption for homeowners 65 years old and older. If you included your date of birth on the application when you originally applied for a homestead exemption, and submitted your application during or after 2005, you will automatically receive the exemption at age 65 and subsequent years.
If you meet the definition of disabled under the Old Age, Survivor’s and Disability Insurance Act, you may qualify for Texas' disability homestead exemption. You must apply for the exemption with the appraisal district in you local area within one year of qualifying as disabled or up to a year after your tax due date. You typically must submit proof of your disability to the appraisal district. The disability exemption may apply for mental or physical disabilities, and you can get the credit even if you do not receive disability benefits. You cannot receive the age exemption for people 65 years old or older, and the disability exemption at the same time.
Disabled Veterans Exemption
Texas offers a special homestead exemption for disabled veterans. To qualify for the exemption, you must have served in the U.S. Armed Forces and must have received a disability classification from the U.S. Department of Veterans Affairs. If the VA classified you as 100 percent disabled, you can receive a 100 percent homestead tax exemption, relieving you of all property taxes on the qualifying property. You can also receive varying levels of homestead tax exemptions for disabilities lower than 100 percent. For instance, at the time of publication, you can receive a $10,000 veterans disability homestead tax exemption if you have a 50 percent to 69 percent disability.
- Harris County Appraisal District: Disability Homestead Exemptions Information and Requirements
- Texas Comptroller: Application for Residence Homestead Exemption
- Texas Comptroller: Exemptions
- Texas Comptroller: New Homestead Exemption for Disabled Veterans
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Summary Page. Accessed April 17, 2020.
- Institute on Taxation and Economic Policy. "Property Tax Homestead Exemptions." Accessed April 17, 2020.
- Connecticut General Assembly, OLR Research Report. "State Homestead Exemption and Credit Programs." Accessed April 17, 2020.
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Pages 4-46. Accessed April 17, 2020.
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Pages 9 and 41. Accessed April 17, 2020.
- U.S. House of Representatives, Office of the Law Revision Counsel. "11 USC 522: Exemptions." Accessed Feb. 2, 2020.
- Federal Register. "Revision of Certain Dollar Amounts in the Bankruptcy Code Prescribed Under Section 104(a) of the Code." Accessed Feb. 2, 2020.
- Congressional Research Service. "Homestead Exemptions in Bankruptcy After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)," Pages 31 and 36. Accessed April 17, 2020.
Michael Evans graduated from The University of Memphis, where he studied photography and film production. His writings have appeared in numerous print and online publications, including International Living, USA Today, The Guardian, Fox Business, Yahoo Finance and Bankrate.