Texas Property Tax Exemptions

A property tax exemption removes part of the value of your property from taxation and lowers your tax bill. For example, if your home is appraised at $200,000, but you qualify for a $15,000 exemption, you pay property taxes as if your home were valued at $185,000

Understanding and taking advantage of available property tax exemptions can save you thousands of dollars. Here are several common examples of residential real estate exemptions:

Homestead Exemption

To qualify for a homestead exemption, you must own a detached home, condominium or manufactured home. The property must be the principal residence of the owner of record, who must live in the property on January 1 of the tax year. The owner must be an individual (not a corporation). The residency requirement is waived if the homeowner is over the age of 65 or disabled. A taxpayer may qualify for a homestead exemption on only one Texas property per year.

The amount of the exemption will vary by year and taxing body. Schools may offer homestead properties exemptions of up to $15,000. Other taxing entities may offer homestead exemptions of up to twenty percent of the value of your property but must provide a minimum of a $5,000 exemption regardless of assessed value if they choose to offer the homestead exemption. In 2010, Plano ISD offered a $15,000 homestead exemption; The City of Plano offered a 20% exemption on homestead properties and Collin County offered a 5% exemption.

Age 65 or Older Homeowner Exemption

In addition to the homestead exemption, taxpayers age 65 and older may qualify for an additional $10,000 exemption from school district taxes. The exemption applies as of January 1 of the year in which you reach the age of 65. If you qualify for both the over 65 exemption and the disabilities exemption, you must choose only one exemption for school district taxes.

Homeowners with Disabilities Exemption

Taxpayers with disabilities may qualify for a $10,000 exemption from the school district. Any taxing authority may offer an exemption of at least $3,000 due to disabilities.

Disabled Veteran or Survivor Exemption

All or part of the residence of a disabled veteran may be exempted from property taxation. In addition, disabled veterans may qualify for partial exemptions on non-homestead properties.

 

An Exemption of up to the Appraised Value

Disability Rating

$5,000

At least 10% but less than 30%

$7,500

At least 30% but less than 50%

$10,000

At least 50% but less than $70%

$12,000

70% and above

 

If you are a disabled veteran who receives 100% disability compensation due to a service-connected disability and a rating of 100% disabled or of individual unemployability, you are entitled to an exemption of the total appraised value of your residence homestead.

Additional Exemptions

There are rules for transferring disability and over 65 exemptions to surviving spouses should the qualifying property owner die. There are also special rules on assessing your property if you have solar and/or wind-powered energy devices installed on your property. Please see the Texas Comptroller for additional rules.

How to File for an Exemption on Your House

To file for an exemption on your house, do the following:

  • Obtain an application form from your local appraisal district office or download online here
    • For homestead, over 65 and disability exemptions, use form #50-114
    • For disabled veteran exemptions, use form #50-135
  • Return the completed with all requested documentation after January 1 but no later than April 30 in the year in which you qualify