Types of Property Tax Exemptions in Texas
Although every property owner in Texas is taxed on the value of their property, it is possible to qualify for a partial or even total exemption that reduces the property amount on which you are taxed. What type of exemptions are there and how can you find out if you qualify? Below are the most common exemptions for Texas property taxes.
If you believe you qualify for one of the exemptions below, be sure to contact your local tax authority for more information, as most of the exemptions will require an official application in order to be considered for the tax break.
A homestead exemption can be claimed by homeowners who live in the property as their primary residence. Applying for a homestead exemption removes part of your home’s value from being taxed, ultimately helping to lower your overall taxes.
You can apply for a homestead exemption whether you own a house, condo, or a manufactured home, as long as it is your primary residence in Texas. Your homestead may also include up to 20 acres of land. You cannot have more than one Texas homestead.
Someone who inherits a property either through a will, transfer, or death deed can also apply for a homestead exemption if they live in the property as their primary residence. If you are not identified as the homeowner on the home’s deed or in county recordings, you will need to provide evidence such as a copy of the property owner’s death certificate or a copy of the property’s most recent utility bill in order to qualify for the exemption.
Age 65 or Older or Disabled Persons
People who are age 65 or older qualify for an exemption between $3,000 to $10,000 depending on the county you live in. To qualify, you must have ownership in the property and live in the home as your primary residence. If a homeowner age 65 or older dies, the surviving spouse may continue to receive the exemption if they are age 55 or older at the time of their spouse’s death. However, the spouse may need to reapply for the exemption.
A disabled person can apply 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 tax exemption, those who have these exemptions in place may be eligible to defer their taxes while they still live in the home, which means the taxes continue to accrue, but no foreclosure action can be taken for unpaid taxes.
Disabled Veterans or Their Surviving Spouses; Surviving Spouses of First Responders Killed in the Line of Duty
Partial exemptions are available for disabled veterans and vary based on their disability rating. A surviving spouse of a disabled veteran who does not remarry, as well as their surviving children, may also qualify for the exemption.
Surviving spouses of a first responder killed in the line of duty can also receive an exemption if they have not remarried since the death of the first responder.
All exemption applications must be submitted to your county appraisal district. The exemption application only needs to be filed once and is free to submit.
For more information about property tax exemptions and for the forms to apply visit https://comptroller.texas.gov/taxes/property-tax/exemptions/.