Property Tax Exemptions In Texas

Texas property taxes can be substantial, but the good news is there are numerous property tax exemptions available that could significantly reduce your annual bill. Whether you’re a homeowner, senior citizen, veteran, disabled individual, or business owner, understanding the property tax exemptions in Texas is key to maximizing your savings.

Who is Exempt from Paying Property Taxes in Texas?

While most property owners are required to pay property taxes, certain individuals and organizations are fully exempt. These include:

  • Religious organizations: Churches, synagogues, mosques, and other religious institutions.
  • Non-profit organizations: Charitable organizations with a 501(c)(3) status.
  • Educational institutions: Public schools, colleges, and universities.
  • Government entities: Federal, state, and local government properties.

Texas Property Tax Exemptions for Homeowners | Your Residence Homestead

If you own and live in your home as your primary residence, you’re entitled to a residence homestead exemption. This is one of the most common and valuable property tax exemptions in Texas — here’s how it works:

The General Residence Homestead Exemption is mandatory for school districts and reduces the taxable value of your home by a set amount. For the 2024 tax year, this amount is $40,000.

Optional Percentage Exemptions: Some local taxing units may offer an additional exemption of up to 20% of your home’s value. Check with your local appraisal district for specifics.

Who Qualifies for a Residence Homestead Exemption?

To claim the residence homestead exemption, you must meet certain criteria:

  • Own and occupy the property as your primary residence on January 1st of the tax year.
  • Be a Texas resident (with a valid Texas driver’s license or ID card).
  • Not claim a homestead exemption on any other property.

Additional Property Tax Exemptions in Texas

Texas offers a variety of property tax exemptions beyond the residence homestead exemption:

Over 65 or Disabled Exemption

If you or your spouse is 65 years of age or older, or if you have a disability, you’re entitled to an additional $10,000 knocked off the taxable value of your homestead. This is specifically for school district taxes, meaning your school tax bill could decrease significantly. 

It’s also important to note that this exemption stacks on top of the general homestead exemption, potentially resulting in even greater savings.

Disabled Veteran Exemption

The Texas property tax code honors the service of disabled veterans with substantial property tax exemptions. The amount varies depending on the veteran’s disability rating assigned by the U.S. Department of Veterans Affairs. Ratings of 10% to 30% may qualify for a $5,000 exemption. Higher ratings can lead to increasing exemptions, with a 100% disability rating potentially resulting in a complete property tax exemption.

Surviving Spouse of Military Exemption

To honor the ultimate sacrifice made by fallen service members, Texas offers a complete property tax exemption for surviving spouses of military members killed in action. This exemption can provide significant financial relief during a difficult time.

Partial Exemption for New Property Owners

If you purchased your home after January 1st of the tax year, you might not be eligible for a full year of exemptions. However, you can often still receive a partial exemption based on the remaining months of the year that you owned and occupied the property as your primary residence. This can provide some relief as you settle into your new home.

Agricultural, Timber, or Wildlife Exemption

Properties actively used for agricultural production, timber operations, or wildlife management may be eligible for specialized property tax exemptions. These exemptions often involve specific criteria related to land use, income, and conservation practices. Consult with your local appraisal district to understand the requirements and potential benefits for your specific property.

Open-Space Land Exemption

This exemption encourages land conservation and helps preserve the natural beauty of Texas. Landowners who dedicate their property to open space, such as parks, nature preserves, or agricultural land, can apply for an exemption. The property is assessed at a lower value based on its use, rather than its potential development value. 

Claiming Your Property Tax Exemptions

To claim your property tax exemptions, you will need to file an application with your local appraisal district. The deadline varies, but it’s usually around April or May. The appraisal district may require additional documentation, such as proof of age, disability, or veteran status.

Partner with Property Tax Experts | The Hegwood Group, LP

Navigating the complexities of property tax exemptions in Texas can be a daunting task. That’s where The Hegwood Group, LP comes in.  We’re a Dallas-based firm specializing in property tax consulting and compliance.  Our team of experts can help you:

  • Identify all the property tax exemptions you may be eligible for.
  • Prepare and file your exemption applications.
  • Negotiate with appraisal districts on your behalf.
  • Appeal your property tax appraisal if necessary.

Take Control of Your Property Taxes

Don’t let property taxes take a bite out of your budget. By understanding the property tax exemptions available in Texas and partnering with The Hegwood Group, LP, you can potentially save thousands of dollars each year. Reach out today for a free consultation — and let us help you maximize your savings.