TEXAS HOMESTEAD EXEMPTION: What You Need to Know

TEXAS HOMESTEAD EXEMPTION: What You Need to Know


TAXES. Nobody likes them. Everybody pays for them. I’m sure when you thought about purchasing a home, you heard about the tax savings you can get from that. Well now you own your own home and you pay your own property taxes. You want to pay as little as you have to because who wants to pay more? Well the good news is that you can reduce the property taxes that you pay by claiming a homestead exemption. Hi guys! I’m Kyle Pfaffe, REALTOR, and welcome to Real Estate. Real Answers. Here we provide you with honest answers to your real estate questions. Today I want to help you understand how you can save money and your property taxes by claiming a homestead exemption. First of all, what is a homestead exemption? Well, a homestead exemption removes a slice of your home’s value from being taxed. A homestead is any structure, condominium or manufactured home on a piece of property that you own of less than 20 acres. To claim your homestead exemption, there’s a few criteria that you have to meet. First of all, you have to own your home and have to use it as your primary residence as of January 1st in the year for which you are applying for your homestead exemption. Also the address on your driver’s license or state issued ID has to match the address of the property for which you’re claiming your homestead exemption. Secondly, how much is your homestead exemption. Well, Texas law mandates that all school districts must provide a $25,000 exemption for property tax. So if your home is worth $100,000, that means that you’re only going to be taxed on $75,000 of that. Texas law also allows other taxing units to provide exemptions to you if they choose and that will be based on where you live. Travis County offers a 20% exemption on your property taxes and Williamson County offers a $3000 exemption on a special tax for roads. It’s also important to know that with your homestead exemption, the county cannot raise the appraised value of your home by more than 10% each year even if the actual value is greater. With the current rate of appreciation we’ve seen over the past few years, a lot of homeowners are saving money on their property tax because of that provision. A third question is What other exemptions are available? Well the most common other exemptions are a senior citizen exemption, a disabled exemption and an exemption for disabled veterans. For both a senior exemption and the disabled exemption, school districts are required to give a $10,000 exemption for your property taxes, but you can only claim one of the other even if you qualify for both. When you turn 65, you may also qualify for a tax ceiling. That is, the school district may not increase your taxes as long as you live in that home. The veterans exemption is able to disabled veterans and their surviving dependents. It entitles a disabled vet an exemption equal to a service-connected disability, up to 100% I put a list of all the exemptions available to you in Texas in the link below. Another question I often get is how do I apply for my homestead exemption? Well if you receive a piece of mail that offers to file your homestead exemption for you for a fee of $40 or $50, that is a scam and do not do it. You can claim your exemption for free simply by going to your county’s tax website, downloading the form and mailing it in yourself. So please save yourself some money by doing it that way. In the notes below, I put links to most of the forms you in need for the counties in Central Texas. You can file your form as early as January 1st but the deadline that you must file by is April 30th. Anyways, I hope this REAL ANSWER has been helpful for you. Please go to my website and sign up receive updates with more REAL ANSWERS, because if you don’t need it, I guarantee you a friend or family member who needs honest answers to their real estate questions. Thank you so much for watching. This is real estate and that is the REAL ANSWER.

43 thoughts on “TEXAS HOMESTEAD EXEMPTION: What You Need to Know

  1. You must file your Homestead Exemption before April 30 to save on your 2017 property taxes. Don't wait! It's free to claim your exemption!

  2. Hey thank you so much for the video that really answered a lot of questions I appreciate that

  3. Thanks – very valuable info! I bought my house in Apr-2015 and filed a homestead exemption later in 2015 but apparently TCAD just ignored it as I was not the owner on Jan-1-2015. After that, in 2017 I realized my homestead exemption is not accounted (obviously) in my 2016 and 2017 Appraisal notices. Can I still file my homestead exemption? Is there any exclusions? Thank you!

  4. You can also get your home removed from the tax rolls. Property taxes on private property is very illegal. They can only tax commercial properties doing business. Know the law, anything else is corporate extortion. Do your homework, know how to do this according to the constitution concerning real private property. Has nothing to do with land patents, those are worthless. Educate yourself and fight back.

  5. Why isn't the property taxes subsidized for the elderly and disabled? Even with an exemption in TEXAS property taxes are still nuts!

  6. ty for the video!

  7. is a business in dallas call RAC Refund Advisory Corp that is charging half of your refund money just to fill out your homesteads and no body do nothing to stop those thieves please some body do something

  8. Do you have to file every year?

  9. So, if I'm 80%disabled veteran in Tarrant county, how does this help Me? Does my monthly payment go down?

  10. Thanks for explaining

  11. thanks man, needed this info!

  12. Sir, I filed bankruptcy in 2014, and I believe I had to file a homestead deed at that time for THAT house.
    In 2017 I purchased a home in Feb. and I wanted to know if the paperwork I filed in the bankruptcy is the same as what a homestead is for tax purposes?
    If it is the same what can I do so I can file it for my new home? (If I can) And lastly I retire from the military in 3 years can I refile under the disability that I get?
    Thank you so much for helping me, I lost that house due to a divorce, I was deployed for a year, I came back to find out the mortgage hadn't been paid, and that house required a mortgage I couldn't afford by myself. So I had to let it go sadly.
    Thank you again Sir, you really made this sound very simple!
    J. Goode USN

  13. Did Trump do away with the exemptions?

  14. Whats the thing called where you file some paperwork and then your property is protected from lawsuit or debt for up to 100k ? I thought that was the Homestead exemption.

  15. How do I transfer a previous Homestead Exemption to my current property?

  16. Where did you get that picture of the 360 bridge?

  17. Didn't work for me I applied and my mortgage went up by 150 bucks. bought my home in March of 2017 and applied in Jan 2018…in march of 2018 it went up.

  18. So if i file for this Jan 2019 when will i get the benefit of it..2020? Or can it be within the same year i file?

  19. Also is there an exemption if you're a city employee. Police dept?

  20. God Bless you, with many things my friend. Honesty..

  21. Hi I have this question and don't know how to answer it can you please help me? "How many acres (not to exceed 20) are used for residential occupancy (yard/garden etc.) of the structure?" (NOTE: The structure and the land and improvements must have identical ownership).

  22. So i will be paying taxes for 300k instead of 400k value if i file for homestead?
    Is there any downside of filing the homestead. Any side effects and the home value or future on anything?
    Thanks for the video

  23. Hi, I have a question for this. I live in Houston (Harris County) house is being built, will be completed this month (October 2018) is there an exception to file for this exemption to take effect for 2019? or do I have to wait for the following year for this exemption to take effect?

  24. Do I need to  reapply every year for the exemption?

  25. if i already filed homestead exemption and granted, am I automatically have Texas Homestead Protection, that is protection of my property from judgement/creditors from forcing me to sale the house or seize my house from lawsuit ? or is it the case that i have to do/apply separately to have that "Texas Homestead Protection" ? Thanks !

  26. I am 90% disabled veteran how much would I have to pay for an 150,000.00 home in texas.

  27. Thanks for the concise helpful video and links!

  28. I bought a house that the former owner has homestead on, I just received a mail about it that I need to submit it before February 20, and I have absolutely no idea what it's means, I just know it's about homestead, do I have to call them, sign and submit, or ignore it. Thanks

  29. Thanks Sir, First easy to understand explanation I have found so far!

  30. Off of my property taxes it will just save you about $60 a month, does that sound about right?

  31. This guy honestly deserves more views.

  32. Thanks for the tips I will take advantage of the resources you provided.

  33. Has it changed to where one can claim both the Homestead Exemption and the Disabled Veteran Exemption?

  34. I applied 2 years ago and it deducted the exemption only on that year and not the succeeding years but I was searching for other property and I saw one property that had 3 deductions happened through the years and it says hs cap loss which I believe is the same as homestead. Does it suppose to keep deducting the appraised value to represent the assessed value?

  35. Thank you for simplifying this exemption!

  36. I took the papers that I signed once I bought the house and when I turned in my homestead paper the lady took a copy of my paperwork for how much I paid for my home . Is that good or bad or routine?

  37. Its ridiculous that we have to pay for taxs on something we already own .sales tax should be enough

  38. Comunication line with representative follow up was prety good and the cost of the funds in the interest-rate and the term were very satisfactary.I would recomend use them again by calling 1 304 362 0022

  39. What if you have more than 20 actes

  40. Can a senior citizen have multiple houses under his name and be tax exempted on his/hers properties? Some people are losing their house due to high taxes. SMH

  41. what if I occupy the property say on 01/20/2019? can I still file for the homestead exemption?? Thanks in advance 🙂

  42. Question. I purchase a fixer upper with the intent to fix it up to live in. I'm over 65 and apply for the homestead senior tax exemption and also apply for the property tax freeze. Once I complete the improvements and of course the house would be appraised at a higher value, my property taxes will not go up due to the freeze, am I correct?

  43. What is a "Land Patent" ?

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