what Are Homestead Exemptions in texas and How To Apply For Them
The Homestead Exemption:
A Homestead Exemption in Texas allows homeowners to lower their property tax by allowing a lower home value to be used for tax calculations by their local central appraisal district. Depending on the value of the home, this can potentially save homeowners thousands of dollars each year. In Texas, property owners may apply for a Homestead Exemption starting on January 1, but no later than April 30 of each year. However, not all Texas real estate qualifies for this type of tax exemption.
To qualify for a Homestead Exemption the homeowner must:
1) Be an individual, not a corporation or other type of business entity,
2) Own the home as of January 1 of the tax year, and
3) Occupy the home as the principal residence on January 1 of the tax year.
The January 1 ownership and residency are not required for individuals who are disabled or age 65 or older for the disabled or age 65 homestead exemptions.
Homesteads can be a condominium, separate structure or manufactured home located on leased or owned land, so long as the individual living in the home owns it.
If you move away temporarily, you can still qualify for the exemption if you do not establish another principal residence and you have intentions to return within two years. Exceptions exist for those who do not return within two years, including being away due to military service or live in a facility providing services for health, infirmity or aging.
If you do not own 100% of the property, exemptions are allocated based on the percent-ownership interest each applicant has in the home.
Types of Homestead Exemptions:
An individual may receive several types of exemptions if they qualify.
· County Taxes. A $3000 exemption is available if a county collects a special tax for flood control or farm-to-market (“FM”) roads. Homeowners will only receive a local-option exemption if the county grants an optional exemption for disabled or age 65 or older individuals.
· School Taxes. All who qualify for a homestead exemption are allowed a $25,000 homestead exemption for school taxes.
· Age 65 or Older and Disabled Exemptions. Individuals who are disabled or 65 or older qualify for a $10,000 Homestead Exemption for school taxes, in addition to the $25,000 exemption for all homeowners. For those individuals who qualify for both the $10,000 exemption for disabled homeowners and the $10,000 exemption for age 65 or older, the owner can only choose one or the other exemption for school taxes; the owner cannot receive both exemptions simultaneously.
· Optional Disabled or Age 65 Exemptions. An additional exemption of at least $3,000 for taxpayers who are disabled or age 65 or older may be offered by any taxing unit.
· Optional Percentage Exemptions. An exemption of up to 20% of a home’s value may be offered by any taxing unit, such as a school, city, county or special district so long as this optional exemption is not less than $5,000. Each taxing unit has the discretion of whether to offer this Optional Percentage Exemption and at what rate and they are required to make these decisions before July 1 of the tax year.
How To Apply For a Homestead Exemption:
Each owner residing in the home must complete a separate application (except legally married couples who can file one application for the two of them) to qualify for an exemption based on their interest in the property.
In the form, select all exemptions that apply by checking the appropriate boxes. Answer all questions completely and attached required-documents required by the application. Your Homestead Exemption will be denied unless all of the required documents, including your Driver’s License, show the same homestead address. Mail your filled-out applications that are specific to your County Appraisal District. For some County Appraisal Districts, the Homestead Exemption can be filed online.
Once an exemption is received, the homeowner does not need to reapply unless the chief appraiser sends you a new application, or circumstances change your status for qualifying for homestead exemptions, the latter of which requires you to inform the appraisal district before May 1st of the next tax year.
For Dallas County homestead exemptions, information can be found at the Dallas Central Appraisal District Website by clicking here. This includes a Dallas homestead exemption, Richardson homestead exemption, Garland homestead exemption, Sunnyale homestead exemption, Highland Park homestead exemption, Irving homestead exemption, among other cities in Dallas County.
For Tarrant County homestead exemptions, information can be found at the Tarrant Appraisal District Website by clicking here. This includes Fort Worth homestead exemption, Arlington homestead exemption, Southlake homestead exemption, Keller homestead exemption, Colleyville homestead exemption, among other cities in Tarrant County.
For Collin County homestead exemptions, information can be found at the Collin Central Appraisal District Website by clicking here. This includes a Plano homestead exemption, a Frisco homestead exemption, a McKinney homestead exemption, and an Allen homestead exemption, among other cities in Collin County.
For Denton County homestead exemptions, information can be found at the Collin Central Appraisal District Website by clicking here. This includes a Denton homestead exemption, Lewisville homestead exemption, Little Elm homestead exemption, and an Argyle homestead exemption, among other cities in Denton County
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