Texas Property Tax Exemptions Explained: What You Need to Know

Property taxes in Texas can feel like a major hit to your budget, but did you know there are ways to lower that bill? Texas offers a range of property tax exemptions that could save you hundreds—or even thousands—each year. Understanding how these exemptions work and how to claim them can make a big difference for homeowners. In this guide, we’ll break down what property taxes are, who has to pay them, and how you can take advantage of tax breaks to lighten the load. Plus, we'll walk you through how to file for exemptions, key deadlines, and what happens if you miss them.

What is Property Tax?

Property tax is a tax assessed by local governments (like counties, cities, and school districts) based on the value of your property. In Texas, this tax is one of the primary sources of funding for public services, including schools, infrastructure, and emergency services. Every year, your local county appraisal district (CAD) appraises your property to determine its taxable value. Property taxes are then calculated based on that value and the tax rates set by local taxing authorities.

How Much Can You Save with Property Tax Exemptions?

The amount you can save depends on the type of exemption you qualify for. For example, the Homestead Exemption alone reduces the appraised value of your home by at least $25,000 for school district taxes. For homeowners who are over 65 or disabled, the savings are even more significant, with additional exemptions that reduce taxable values even further.

What Are the Property Tax Exemptions Available in Texas?

Homestead Exemption:

This exemption is available to homeowners who use the property as their primary residence. It reduces the taxable value of your home by at least $25,000 for school district taxes, and some counties offer additional reductions.

Age 65 or Older Exemption:

This provides an additional $10,000 reduction in the appraised value for those aged 65 or older. It can significantly reduce property taxes for seniors, and some jurisdictions may offer additional benefits.

Disabled Person Exemption:

Homeowners with disabilities can qualify for an additional $10,000 exemption for school district taxes. Like the Age 65 exemption, local jurisdictions may offer extra relief.

Veteran Exemptions:

Veterans with disabilities can qualify for varying levels of exemptions, depending on their disability rating. The exemptions range from $5,000 to 100% of property taxes. Surviving spouses of veterans killed in action may also qualify for a full exemption.

Surviving Spouse Exemption:

The surviving spouse of a disabled veteran or a first responder killed in action may qualify for a total property tax exemption on their home.

Agricultural or Open-Space Land Exemption (also called the 1-d-1 Open Space Exemption):

Property used primarily for agricultural purposes can qualify for this exemption, which values the land based on its productivity value rather than its market value, leading to significant tax savings.

How to File for an Exemption in Texas?

To claim a property tax exemption, homeowners need to apply with their local County Appraisal District (CAD). Here’s how:

Gather Required Documents:

Proof of ownership (like your deed or title).

Proof of residency for homestead exemptions (such as your Texas driver’s license).

For age-based or disability exemptions, you’ll need to provide proof of age or documentation of your disability.

Submit the Application:

You can download the necessary exemption forms from the Texas Comptroller’s website or your local CAD’s website. Fill out the forms, attach the required documentation, and submit them to the CAD either by mail or in person.

Follow Up:

Once submitted, it’s important to follow up with the appraisal district to ensure your application is processed and approved.

🏠 Continue reading: 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)

When is the Deadline to Apply for Property Tax Exemptions?

The deadline to apply for most property tax exemptions in Texas is April 30 of the tax year. If you miss this deadline, you may still be able to file late, but the chances of receiving the full benefit for that tax year decrease.

Is There a Limit on How Much My Appraisal Value Can Rise?

Yes, for homeowners who qualify for the homestead exemption, Texas limits how much the appraised value of their home can increase each year. Under this law, the assessed value of a home cannot increase more than 10% per year—even if the market value of the home increases by a larger amount. This cap protects homeowners from sharp property tax increases.

How Do I Qualify for a Homestead Exemption on an Inherited Home?

If you inherit a home and live in it as your primary residence, you may be able to qualify for the homestead exemption, even if the property is still in the name of the deceased owner. In this case, you’ll need to provide documentation that you are the rightful heir and that the home is your primary residence.

What Happens if I Don’t Pay My Property Taxes?

If you don’t pay your property taxes, the local government may place a lien on your property. Over time, this could lead to penalties, interest, and even the potential for foreclosure if the taxes remain unpaid.

Can I Pay Property Taxes in Installments?

Yes, Texas allows homeowners to pay property taxes in installments. If you are over the age of 65, disabled, or own a home that was damaged in a disaster, you can choose to pay your taxes in four equal installments, with the first payment due by January 31.

If the Owners Are Married, Can They Claim Two Homestead Exemptions?

No, only one homestead exemption is allowed per married couple, even if they own more than one property. The exemption must be applied to the primary residence.

Can You Do It On Your Own or Do You Need to Hire Someone?

Filing for property tax exemptions is a process you can handle on your own. However, for more complex situations—such as appealing a property tax assessment or applying for less common exemptions—you might benefit from hiring a professional. Companies like Abode can help you navigate the process, ensuring that you claim every exemption for which you qualify and avoid overpaying on your property taxes.

Conclusion

Property taxes in Texas are a significant cost for homeowners, but with the right exemptions, you can drastically reduce your tax bill. Whether it's the homestead exemption or a special exemption for veterans or the disabled, understanding and claiming these benefits is essential. Don’t let your property taxes be a financial burden—make sure you're taking advantage of every opportunity to save.

Ready to lower your property taxes? Let Abode guide you through the process. Our experts can help you claim the right exemptions, appeal unfair appraisals, and keep more money in your pocket. Sign up with Abode today!