An Overview of Tax Exemptions and Tax Relief in Texas 

The process of buying or maintaining a home is littered with hidden costs, and property taxes are one of those unexpected costs that can be a significant burden on many homeowners. However, not everyone is required to pay their full property tax bill. Under some circumstances, you may qualify for tax assistance in the form of deferrals or exemptions. Read below for a full guide on tax exemption in Texas. Curious about property tax deferral? Access the full guide here.  

What Is Property Tax Exemption? 

Different from a property tax deferral, an exemption removes part of the value of your home from being taxed, therefore lowering your taxes. The exemption can offer some relief to those facing growing tax bills. While exemption won’t eliminate your tax bill entirely, it can help lower it.  

Types of Tax Exemptions in Texas 

There are dozens of different property tax exemptions in the State of Texas, including some fairly obscure ones, with some counties having exemptions specific to them. While there are some exceptions, most exemptions fall into the following categories: 

Homestead Exemptions 

Don’t let the name confuse you. If you own a residence, it’s your primary residence, and you aren’t currently claiming the exemption somewhere else, you qualify for the homestead exemption. Your home qualifies whether it’s a house, a condo, or even a manufactured home. The law requires school districts to offer a $25,000 exemption on residence homesteads.  

Tax Exemptions for Veterans and Their Surviving Spouses and Children 

There are many exemptions for veterans, active military, and disabled veterans. These exemptions will vary by county. Here are the most common: 

• If you are a disabled veteran who receives 100% disability compensation for a service-connected disability, you may qualify for a special total property tax exemption. This exemption can also be claimed by surviving spouses if the deceased veteran would have qualified at the time of their death. 

• If you are a disabled veteran and qualify for a residence homestead credit, you may qualify for a partial exemption. The exemption amount is determined according to the percentage of a service-connected disability.  

• Surviving spouses of a member of the U.S. armed services who were killed in action qualify for a total property tax exemption until they remarry. 

Tax Exemptions for Seniors 

If you are age 65 or older, you also qualify for a tax exemption. The amount varies depending on the county you live in. In order to receive this exemption, you must own the property and it must be your primary residence. If you pass away, your surviving spouse may continue to receive the exemption if they are aged 55 or older.  

Disabled Tax Exemptions 

A disabled person qualifies for an exemption if they meet the definition of disabled for the purpose of receiving disability insurance benefits under the Federal Old Age, Survivors, and Disability Insurance Act. In addition to the exemption, disabled individuals may qualify for a deferment that keeps any foreclosure action from being taken.  

How to Apply For an Exemption 

If you think you qualify for a tax exemption, you’ll want to reach out to your local county to discuss which exemptions are available and their specific criteria. You’ll then likely need to file an application and return it to your county’s tax assessor office with any supporting documentation to prove your qualifications. Once you are approved, you’ll receive an updated tax bill. 

Johnson & Starr Can Offer Additional Assistance 

While a property tax exemption can help you lower your taxes, you’ll still need to find a way to pay any delinquent property taxes to avoid foreclosure. Johnson & Starr can help you pay your delinquent taxes once and for all. Give us a call at 1-800-203-9157 or book your 15-minute loan consultation here.