Why Filing for a Homestead Exemption in Texas is a Smart Move

If you’re a Central Texas homeowner, filing for a homestead exemption on your property taxes can save you a significant amount of money each year. Homestead exemptions reduce the taxable value of your home, which in turn lowers your property tax bill. This benefit is available to most homeowners who use their property as their primary residence, and it’s an essential tool for reducing annual expenses.

Let’s dive into why you should consider filing for a homestead exemption and how to do it in some key Central Texas counties.

Benefits of a Homestead Exemption

1. Lower Property Taxes A general residence homestead exempts a portion of your home’s value from taxation, potentially lowering your taxes. For example, Tax Code Section 11.13(b) mandates that school districts provide a $100,000 exemption on a residence homestead. This means if your home is appraised at $300,000, you will pay school taxes as if your home were valued at $200,000.
2. Protection Against Rising Appraisals Once you file for a homestead exemption, the appraised value of your home for tax purposes cannot increase by more than 10% annually, thanks to the homestead cap. This offers protection against sudden spikes in property values.
3. Additional Exemptions for Certain Groups Homeowners who are over 65, disabled, or veterans may qualify for additional exemptions, further reducing their tax burden.

Eligibility Requirements

To qualify for the general residence homestead exemption, a home must meet the definition of a residence homestead. This includes:

• Having an ownership interest in the property.
• Using the property as your principal residence.
• Declaring that you do not claim a homestead exemption on another property in or outside of Texas.

If you acquire the property after January 1, you may still qualify for the homestead exemption for the applicable portion of the tax year, provided the previous owner did not receive the same exemption for that year. Legislation enacted in 2023 that may require homeowners to renew their application for their homestead exemptions every five years. Don't be alarmed if you receive a letter from the appraisal district asking you to renew. Just resubmit with the same qualifications above.

Filing Deadlines

The deadline to apply for a homestead exemption is typically April 30 of the tax year. However, it’s always a good idea to check with your local appraisal district for any updates or exceptions.

How to File for a Homestead Exemption

Filing for a homestead exemption is straightforward, and many counties allow you to file online. Below are links to Central Texas appraisal districts where you can submit your application:

• Bell County Appraisal District
• Travis County Appraisal District
• Williamson County Appraisal District
• Hays County Appraisal District

Steps to File Online

1. Visit the website for your county’s appraisal district.
2. Locate the “Homestead Exemption” section.
3. Complete the online application, ensuring you have proof of residency, such as a Texas driver’s license with an address matching the property.
4. Submit the application before the deadline.

Final Thoughts

Filing for a homestead exemption is a simple way to lower your property tax bill and gain financial security for your home. Whether you’re a first-time homeowner or have lived in your home for years, taking advantage of this exemption can provide significant savings over time. As a reminder, Texas is a non-disclosure state, meaning purchasers are not required to disclose the sales price of their home—a valuable privacy benefit.

If you’re unsure about the process or need assistance, don’t hesitate to reach out. And remember, the earlier you file, the sooner you can start enjoying the benefits!