How to Get a Property Tax Break in Texas: A Complete Guide to Exemptions and Savings

Texas homeowners face high property taxes, but there are several ways to reduce your tax burden through exemptions. Property tax breaks can significantly lower the amount you owe each year. This guide covers the main types of exemptions available in Texas, who qualifies, and how to apply for these valuable benefits.

1. Homestead Exemption: The Essential Tax Break for Homeowners

The General Homestead Exemption is the most common tax break available to Texas homeowners. This exemption applies to your primary residence and can reduce your property’s taxable value by a significant amount.

• Who Qualifies: You must own and occupy the property as your primary residence on January 1 of the tax year.
• Benefit: This exemption typically reduces your taxable value by at least $25,000.
• How to Apply: Complete the Residence Homestead Exemption Application (Form 50-114) and submit it to your local appraisal district.

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2. Age 65 or Older Exemption: Additional Savings for Seniors

Texas offers an additional exemption for homeowners aged 65 and older, which can significantly reduce the tax burden for seniors on a fixed income.

• Who Qualifies: Homeowners who are 65 or older as of January 1 of the tax year.
• Benefit: An additional $10,000 exemption on school district taxes, plus potential exemptions from other taxing entities.
• How to Apply: Submit proof of age, such as a Texas ID or driver’s license, along with your application to your appraisal district.

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3. Disability Exemption: For Homeowners with Disabilities

The Disability Exemption offers tax relief to homeowners with disabilities, helping to ease financial burdens associated with medical expenses or limited income.

• Who Qualifies: Homeowners with a disability as defined by Social Security Administration standards.
• Benefit: An additional $10,000 exemption on school district taxes.
• How to Apply: Provide proof of disability status and submit it along with the homestead exemption application.

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4. Veteran’s Exemption: Significant Benefits for Disabled Veterans

Texas provides valuable property tax breaks for disabled veterans, including a 100% exemption for those with a 100% disability rating. Lower disability ratings may qualify for partial exemptions.

• Who Qualifies: Veterans with service-related disabilities, as verified by the Department of Veterans Affairs.
• Benefit: Exemptions vary based on disability rating, potentially exempting up to the entire taxable value.
• How to Apply: Complete the Disabled Veteran’s or Survivor’s Exemption Application (Form 50-135) and submit it with proof of disability rating.

5. Surviving Spouse Exemption: Tax Relief for Spouses of Fallen Service Members

Surviving spouses of disabled veterans or service members who died in the line of duty may qualify for property tax exemptions. This benefit extends financial relief to honor their sacrifice.

• Who Qualifies: Surviving spouses who have not remarried and meet specific residency requirements.
• Benefit: Full or partial exemptions, depending on the veteran’s disability rating or service status.
• How to Apply: Submit the same application form used for disabled veterans, with proof of marriage and the veteran’s service status.

6. Property Tax Deferral for Seniors and Disabled Homeowners

If you’re 65 or older or have a disability, Texas allows you to defer property tax payments on your homestead. This option delays payments until the property is sold or the homeowner passes away, providing temporary financial relief.

• How It Works: Deferred taxes accrue interest but are not due until ownership changes.
• How to Apply: Submit a Property Tax Deferral Affidavit (Form 50-126) to your appraisal district.

7. Applying for Property Tax Exemptions in Texas

To get started on your property tax exemption applications, follow these steps:

1. Gather Necessary Documentation: Include proof of age, disability status, veteran status, or other eligibility criteria.

2. Complete the Application: Fill out the correct exemption form(s) and submit them to your appraisal district by April 30 for the current tax year.

3. Renew As Needed: Some exemptions require periodic renewal, so keep an eye on deadlines.

8. Additional Tips for Lowering Your Property Taxes

Beyond exemptions, here are additional strategies to consider:

• Protest Your Property Tax Assessment: If your assessed value seems too high, file a protest to potentially reduce your tax bill.
• Track Property Value Trends: Market trends can affect your property’s assessed value. Abode’s monitoring tool provides alerts when your assessment changes, helping you stay proactive.
• Take Advantage of Local Exemptions: Some counties offer additional exemptions for homeowners with low income or specific needs. Check with your local appraisal district for options.

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Understanding and applying for property tax exemptions can save Texas homeowners a substantial amount each year. From the general homestead exemption to specialized benefits for seniors, veterans, and those with disabilities, these breaks are designed to make homeownership more affordable. With Abode’s tools, you can easily track changes, estimate potential savings, and take control of your property taxes.

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