Property Tax Help for Low-Income Homeowners: What You Need to Know 

Property taxes are a burden for anyone to pay, and inflation and increased tax rates in Texas each year are not making it any easier. Last year taxes in Harris County increased by an astounding 19% in response to the hurricanes and natural disasters that affected the area, creating a significant strain on homeowners who were already struggling to pay their property tax bill. If you own a home and earn a lower than average income, you likely face additional challenges each year when your tax bill becomes due. Below is some helpful information if you find yourself in this situation. 

Understanding the Challenge 

While property values and tax rates are rising in Texas, it’s unlikely that your yearly income is increasing at the same rate. With higher property values come higher tax bills and a fixed or limited income makes it harder to keep up with payments. A recent report shows that nearly half of Texans spend 30% of their income on housing costs, which doesn’t leave much leftover for other vital expenses.  

Programs and Resources Available 

If you are a low-income homeowner in Texas and are struggling to pay your property tax bill, there are a number of Texas-based and Federal-based options to help make your property tax bill more manageable.  

Tax Relief and Deferment Programs 

Texas offers several exemptions, credits, and deferrals to help homeowners lower or temporarily defer their tax bill if they qualify. 

The Homestead Exemption 

 A common option is the homestead exemption which increased to $100,000 in 2024 and $110,000 for homeowners over 65.  

Tax Deferment 

If you are over 65, a veteran, or disabled you may also qualify to defer your property taxes as long as you live in your home without the threat of foreclosure.  

Texas Homeowner Assistance Fund (TXHAF) 

This fund provides grants of up to $25,000 to eligible homeowners for past-due property taxes and fees. Qualifications include owning and occupying the property as your primary residence, having a household income below the area median income level, and experiencing a financial hardship after January 21, 2020. 

How To Apply for Tax Relief 

Applying for property tax relief can be confusing, you’ll want to start by collecting the necessary documents which typically include proof of income, property ownership documents, past tax filings, and proof of residence. Then you’ll want to contact your local tax assessors’ office or check online for application forms. For The Texas Homeowner Assistance Fund, you can find application details through your local county. Always be sure to check deadlines for filing and follow up on your application after it has been submitted to ensure your application has been processed.  

Other Ways to Manage Property Taxes 

If you don’t qualify for the available tax relief programs, there are other ways to manage your property taxes more efficiently. 

Payment Plans 

Most counties in Texas offer payment plans to homeowners who struggle to pay their tax bill all at once.  

Refinancing Options 

You may qualify to refinance your mortgage to lower your overall monthly payment, making it easier to budget in increased property tax bills.  

Property Tax Loans 

If you are already delinquent and can’t afford to pay your property taxes, a property tax loan like the ones at Johnson & Starr could pay off your property taxes and end threats of foreclosure. 

Johnson & Starr Is Here to Help 

If you are a low-income homeowner and are delinquent on your property taxes, we want to help. Our property tax loans offer flexible repayment terms and rates are not based on your credit score. Contact us here to learn more about your options.