How to Lower Your Property Taxes in Texas

You can significantly cut your property tax bill by understanding available exemptions, knowing how to qualify, and taking proactive steps. Here's everything you need to know to navigate the property tax system and make the most of the available savings.

Understanding Property Taxes in Texas

Property taxes are local taxes based on the value of your home and are used to fund community services like schools, roads, and emergency services. Every year, your local County Appraisal District (CAD) assesses the value of your property, and your tax bill is determined based on this assessed value and the tax rates set by local entities.

Property Tax Exemptions

Exemptions can help lower your home's taxable value, reducing the amount you owe in property taxes. Several exemptions are available in Texas, and knowing which ones apply to you can lead to significant savings.

Homestead Exemption‍

This is one of the most common exemptions and is available for homeowners who use the property as their primary residence. It reduces the taxable value of your home by $25,000 for school district taxes, and additional exemptions may be available from county and local jurisdictions.

Age 65 or Older Exemption‍

If you are 65 or older, you can receive an extra $10,000 reduction in the appraised value of your primary residence for school district taxes. Some local taxing units may also offer additional reductions.

Disabled Person Exemption‍

Homeowners who are considered disabled under Social Security guidelines can qualify for this exemption, which provides an additional $10,000 reduction in your home’s value for school district taxes.

Veterans Exemption‍

Disabled veterans and their surviving spouses may qualify for property tax reductions based on their disability rating from the VA. Some veterans and their spouses can receive a full exemption from property taxes, especially if the veteran was killed in action.

Do All Homes Qualify for Homestead Exemptions?

Not every home qualifies for the homestead exemption. To be eligible, the property must be your primary residence, and you can only claim one homestead exemption at a time. Vacation homes or rental properties do not qualify.

What is a Homestead?

A homestead is simply your primary residence. It can be a house, condo, or even a manufactured home on land that you own. The key is that it must be your main place of living.

How Do I Get a Homestead Exemption?

Applying for a homestead exemption is straightforward. You’ll need to complete an application from your local CAD, provide proof of ownership, and submit an ID that shows your current address. Most applications are due by April 30th.

What If I Miss the Deadline for Filing for a Homestead Exemption?

If you miss the deadline, you may still be able to file late but don’t delay. Texas allows for retroactive filing in some cases, so contact your local CAD as soon as possible.

Can I Keep My Homestead Exemption if I Temporarily Move Away?

Yes, you can keep your exemption if you temporarily move for reasons like work or school, as long as you do not establish another primary residence.

Transferring Tax Ceilings and Other Benefits

If you’re 65 or older, or disabled, you may have a tax ceiling that limits the amount of school taxes you pay. This ceiling can often be transferred if you move to a new home in Texas. Additionally, if you’re the surviving spouse of a person with a tax ceiling, you may qualify to transfer those benefits under specific conditions.

Appealing Your Property Tax Assessment

If you think your property has been over-assessed, you have the right to file a protest with your local CAD. Start by reviewing your assessment notice for any inaccuracies, such as incorrect square footage or property condition. Gather evidence, like photos or recent sales data of similar properties, and submit your Notice of Protest by May 15th or within 30 days of receiving your assessment.

Save Big on Property Taxes: Texas Property Tax Assessment Appeal Guide.

Property Tax in Texas: Top 10 Property Tax by County 

1. Property Tax in Harris County 
2. Property Tax in Dallas County  
3. Property Tax in Tarrant County (Fort Worth)
4. Property Tax in Bexar County (San Antonio)
5. Property Tax in Travis County (Austin)
6. Property Tax in Collin County (Plano)
7. Property Tax in Denton County (part of the DFW metroplex)
8. Property Tax in El Paso County (El Paso)
9. Property Tax in Fort Bend County (suburb of Houston)
10. Property Tax in Montgomery County (north of Houston)

Consider Working with Abode

Navigating the complexities of property tax exemptions and assessments can be daunting. Abode specializes in helping Texas homeowners understand their eligibility for exemptions, appeal assessments, and maximize their savings. Our team of experts provides step-by-step guidance to ensure you don’t overpay on your property taxes. Let Abode help you navigate the process and unlock the savings you deserve. Sign up today and take control of your property taxes!

FAQs:

How to decrease property tax in Texas?

To decrease property tax in Texas, you can file a protest if your property is over-assessed, apply for available exemptions (e.g., homestead, senior, or disability), and regularly review your property’s assessed value.

Can I write off my property taxes in Texas?

Yes, you can write off your property taxes in Texas on your federal tax return, subject to the $10,000 cap on state and local tax (SALT) deductions.

Will property tax rates go down in Texas?

Property tax rates in Texas are influenced by local governments and school districts. While rates may decrease with new legislation or voter approval, overall property tax bills can still rise due to increasing property values.