Texas Property Exemptions and do you qualify for them?


Texas Property Exemptions and do you qualify for them?

Do you Qualify for any property Tax Exemptions? 

You can only claim HOMESTEAD exemption on one home in Texas. Investors or non-owner occupants also will not be able to have any property Exemptions. If you own multiple properties in Texas, you can homestead the one you currently reside. 


Property Tax Exemptions (Texas Property Tax code 11.13) 

There are several types of exemptions people with disabilities or individuals over 65 can apply for with their tax appraisal district:

  • School district taxes: All residence homestead owners are allowed a $100,000 homestead exemption from their home's value for school district taxes.
  • County taxes: If a county collects a special tax for farm-to-market roads or flood control, a residence homestead owner is allowed a $3,000 exemption for this tax. If the county grants an optional exemption for homeowners age 65 or older or disabled, the owners will receive only the local-option exemption.
  • Age 65 or older and disabled exemptions: Individuals age 65 or older or disabled residence homestead owners may qualify for an additional $10,000 homestead exemption for school district taxes. If the owner qualifies for both 65+ and disability exemptions, the owner can only choose one or the other for school district taxes. The owner cannot receive both exemptions.
  • Optional percentage exemptions: Any taxing unit, including a city, county, school or special district, may offer an exemption of up to 20 percent of a residence homestead's value. No matter what the percentage is, the amount of an optional exemption cannot be less than $5,000. Each taxing unit decides if it will offer the exemption and at what percentage. This percentage exemption is added to any other homestead exemption under Tax Code Section 11.13 for which an owner qualifies.  
  • Optional age 65 or older or disabled exemptions: Any taxing unit may offer an additional homestead exemption amount of at least $3,000 for taxpayers age 65 or older or disabled.

To be eligible for a tax exemption as a person with a disability, an individual must:

  • Qualify to receive disability benefits under the Federal Old-Age, Survivors and Disability Insurance Program administered by the Social Security Administration.
  • Disability benefits from any other program do not automatically qualify a person for a property tax exemption.
  • To prove eligibility, an individual may need to provide the appraisal district with information on their disability. Contact the local appraisal district for information on what documents are required to prove eligibility.

Tax ceiling for people with disabilities and individuals over 65:

  • If an individual qualifies for their residence homestead for an age 65 or older or disabled person homestead exemption for school district taxes, the school district taxes on that homestead cannot increase as long as they own and live in that home.

Property Tax Exemption for Texas Veterans (Texas Property Tax Code 11.13)

This requires an exemption of the total appraised value of homesteads of Texas veterans who received 100 percent compensation from the U.S. Department of Veterans Affairs (VA) due to a 100 percent disability rating or determination of individual unemployability by the VA. This exemption can only be applied to a residence homestead of a disabled veteran.

A disabled veteran who owns property other than a residence homestead may apply for a different disabled veteran’s exemption under Tax Code Section 11.22 that applied according to the veteran’s disability rating of 10 percent or higher.

An individual must apply to their local appraisal district between Jan. 1 and April 30. Download and print Form 50-114, Application for Residence Homestead Exemption from the Comptroller’s website.

Surviving spouses of veterans who qualified for this exemption or who would have qualified for this exemption if it had been in effect at the time of the veteran's death are eligible if:

  • the surviving spouse has not remarried;
  • the property was the surviving spouse's residence homestead at the time of the veteran's death; and
  • the property remains the surviving spouse's residence homestead.

Deferred Property Tax Payments

Texans may postpone paying current and delinquent property taxes on their homes by signing a tax deferral affidavit at their appraisal district office if they are:

• age 65 or older;

• disabled as defined by law;

• qualified disabled veterans, their unmarried surviving spouses, or their unmarried children under age 18, if no surviving spouse; or

• unmarried surviving spouses of U.S. armed service members killed on active duty and their unmarried children under age 18.

Once the affidavit is on file, taxes are deferred — but not canceled — as long as the owner continues to own and live in the home. Taxes accumulate with 5 percent interest per year. The law extends the tax deferral to the surviving spouse of the person who deferred taxes on the homestead if the surviving spouse was at least 55 years old when the deceased spouse died.

A filed tax deferral affidavit keeps homeowners from losing their homesteads because of delinquent property taxes. A pending sale to foreclose on the homestead’s tax lien will also cease as a result of filing a tax deferral affidavit. In addition, no taxing unit can start or continue a lawsuit to collect delinquent taxes once an affidavit is filed. There are no penalties on delinquent taxes during the deferral period; however, a tax deferral does not cancel penalties that were already due. All deferred taxes and interest become due when the homeowner or surviving spouse no longer owns and live in the home. If the tax debt remains unpaid at that time, penalties may be imposed and taxing units may take legal action to collect the past due amount. 

Article from the Office of the Texas Governor | Greg Abbott

More information: Property Tax Exemptions

Comptroller of Texas: https://comptroller.texas.gov/

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