Texas has some of the nation\u2019s highest property tax bills, but many may not know there\u2019s a way to bring down their payments.<\/p>\n
Texas homeowners can apply for a homestead exemption, which can cut thousands of dollars off the taxable value of a home. That gives homeowners a break on the taxes they pay to public schools, often the biggest chunk of an owner\u2019s tax bill, and often on the taxes they pay to cities and counties, too.<\/p>\n
Despite the savings potential, many homeowners don\u2019t claim the exemption. Homeowners may face hurdles when it comes to applying or having the right documents in order. Others simply might not know about the exemption.<\/p>\n
That means many homeowners are missing out on considerable savings on their property tax bill, which local tax offices sent out this month.\u00a0<\/p>\n
Here\u2019s what to know about claiming a homestead exemption.\u00a0<\/p>\n
Who qualifies for a homestead exemption?<\/p>\n
Homeowners who have at least some ownership stake in their primary residence and live in that residence as of Jan. 1 can apply for an exemption. Homeowners may not claim more than one primary residence in Texas or anywhere else in the country.<\/p>\n
Homeowners who are undocumented effectively do not qualify for a homestead exemption. It\u2019s illegal for undocumented immigrants to obtain a Texas drivers license, which is crucial for claiming the exemption.\u00a0<\/p>\n
How much is the homestead exemption?\u00a0<\/p>\n
Texas law sets the homestead exemption school districts must provide at $140,000. So, if a home is worth $200,000, a qualifying homeowner only pays school property taxes on $60,000 of that value. Homeowners age 65 and or have a qualifying disability receive an additional $60,000 exemption on top of the $140,000 exemption they receive from school districts.\u00a0<\/p>\n
The school tax bill freezes the moment a homeowner turns 65. Older Texans get the option to pay their property taxes in installments, and may also get additional breaks from local school districts if those districts offer them.<\/p>\n
Homeowners with a homestead exemption can also automatically start receiving exemptions from any property taxing entity, like cities and counties, that offer one.<\/p>\n
Properties with the homestead exemption also benefit from the state\u2019s 10% appraisal cap, which limits how fast a home\u2019s taxable value can rise each year.<\/p>\n
What are the requirements to apply for a homestead exemption?<\/p>\n
Most homeowners must have a valid Texas driver\u2019s license or state ID and provide a clear copy of that identification.<\/p>\n
The address on their identification must match the property address. However, the addresses do not need to match for active duty military members and residents of nursing homes or assisted care facilities.<\/p>\n
An heir may obtain an exemption if their name isn\u2019t on the deed or title. They must submit an affidavit<\/a> proving their ownership interest as well as documents including a death certificate, a recent utility bill showing that they reside at the property and any legal documents that establish the inheritance.<\/p>\n There are other documents homeowners will need to claim additional exemptions like one for homeowners with qualifying disabilities or for surviving spouses of veterans.<\/p>\n How do you apply for a homestead exemption?<\/p>\n