Learn More About Property Taxes and the Homestead Exemption in Texas

Here in Texas, we have this little thing called a Homestead Exemption that can save you thousands on your property taxes. So, to help those who are new the Lone Star State, here’s a few tid bits of information to help guide you through the filing process.

How Property Taxes Are Calculated in Texas

The Appraisal: A property’s appraised value is determined annually by the county appraisal district, also referred to as (CAD).

The Math

The General Homestead Exemption

All home owners are go given a $25,000 exemption from their home’s value for taxation purposes.

For example, if your home is appraised at $200,000 then you will pay taxes as if it were worth only $175,000.

Qualifications for Claiming a General Homestead Exemption

In order to claim a general residence homestead exemption, the property owner must:

  • Have owned the property as of January 1st of the tax year.
  • Be an individual person (i.e. not a corporation or business entity).
  • Use the property as their primary place of residence.
  • Not be claiming homestead exemption on another property.

Applying for a Homestead Exemption

  1. Go to your CAD’s website and submit your homestead exemption application online. Here in Central Texas, Travis, Hays, and Williamson Counties all accept online applications.
  2. You are required to submit a copy of your Texas driver’s license and ID card with your application, showing that your home address matches the property address.
  3. Applications must be submitted on or before April 30th of the year for which the exemption is requested.
  4. Once you receive the exemption, you do not need to submit the application again. There is no need to reapply unless the chief appraiser requests it.

About the author

Rich Patterson has been a REALTORĀ® since 2006 and is the Owner of Urban to Suburban Realty.