2025 Texas Homestead Exemption Explained

In Texas, homeowners can take advantage of homestead exemptions to reduce their property tax burden. These exemptions lower the taxable value of a primary residence, leading to potential savings on annual property taxes.

Eligibility Criteria for Homestead Exemptions in Texas

To qualify for a homestead exemption in Texas, the following conditions must be met:

• Primary Residence: The property must serve as your principal residence. This means it’s the home where you predominantly live and the address reflected on official documents like your driver’s license and tax returns.

• Ownership: You must own the property and occupy it as your main residence.

It’s important to note that only one homestead exemption is allowed per individual; secondary or vacation homes do not qualify.

Types of Homestead Exemptions Available

Texas offers several homestead exemptions to cater to different homeowner situations:

• General Residence Homestead Exemption: As of November 2023, homeowners are entitled to a $100,000 exemption from public school district taxes. 

• Age 65 or Older or Disabled Persons Exemption: Individuals aged 65 or older, or those with disabilities, are eligible for an additional $10,000 exemption for school district taxes. 

• Disabled Veteran Exemption: Disabled veterans may receive exemptions ranging from $5,000 to $12,000, depending on the severity of their disability. 

• Surviving Spouse Exemption: Surviving spouses of disabled veterans or members of the armed services killed in action may qualify for specific exemptions. 

Application Process for Homestead Exemptions

Applying for a homestead exemption involves the following steps:

1. Obtain the Application: Download the “Application for Residence Homestead Exemption” from the Texas Comptroller’s website. 

2. Complete the Application: Fill out the form with accurate property and personal information.

3. Provide Required Documentation: Include a copy of your Texas driver’s license or state-issued ID card that matches the property address.

4. Submit the Application: Send the completed form and documents to your local county appraisal district.

Applications are typically due by April 30th of the tax year. Once approved, the exemption remains in effect as long as you own and occupy the property as your primary residence.

Recent Legislative Updates

In November 2023, Texas voters approved Proposition 4, which increased the homestead exemption for school district taxes from $40,000 to $100,000.  This change aims to provide greater property tax relief to homeowners across the state.

Staying informed about these exemptions and legislative changes can lead to significant savings on your property taxes. For personalized advice, consider consulting with a property tax professional or your local appraisal district.