Did you get a letter in the mail offering to file your Homestead Exemption for a small fee? Perhaps you got an offer to recover unclaimed government funds if you sign an agreement giving the solicitor half the recovered money from a homestead exemption. In most cases, the homeowner is simply given a filled-out property tax homestead exemption application form from the firm that is conducting the solicitation.
Don’t fall for it. A homestead exemption is easy to file, if you need help Travis County Appraisal District staff is glad to help.
What is a Texas Homestead Exemption? A Texas homestead exemption, in essence, is a tax cut for qualifying homeowners. A homestead exemption removes a fixed dollar amount of a property’s value from taxation
The residence homestead exemption, as it’s formally known, is one of several tax incentives connected with homeownership. Homeowners who qualify for a general residence homestead exemption are also eligible for the following exemptions if they meet these criteria:
The most common type of homestead exemption in Texas is a $25,000 reduction on a home that serves as a primary residence–as outlined in section 11.13(b) of the state tax code.
Other sections of the tax code offer similar exemptions:
Travis County offers a 20% homestead exemption, the maximum allowed by law.
Homestead Tax Savings
Let’s assume that your home is worth $480,000–the median house cost in Austin, Texas. Under the standard Texas homestead exemption, you would be allowed to reduce the taxable value of your property by $25,000. So you would only be paying taxes on a $455,000 property value, versus $200,000. According to the Travis County Property Tax Estimator, your 2021 Property Taxes will be:
A significant saving!
The qualification criteria for the homestead exemption are:
Applying for homestead exemptions in Texas is fairly straightforward, assuming you meet the basic eligibility requirements mentioned above. All you have to do is file a bit of paperwork.
You must file an Application for Residential Homestead Exemption with the county appraisal district between Jan. 1 and April 30 of the tax year.
A property owner may file a late application for a homestead exemption after the deadline for filing has passed if it is filed not later than two years after the delinquency date for the taxes on the homestead.
There is never a fee to file.
You can file the application for a homestead exemption at any time. If you file the completed application and required documentation by April 30 of the tax year for which you are applying, the exemption is processed in time for your property tax bill that comes out in the fall.
A late homestead exemption application, however, may be filed up to two years after the delinquency date, which is usually Feb. 1, and will be applied retroactively.
You can also apply anytime for the over-65 or disabled person exemption after you qualify for the exemption; the exemption will be applied retroactively if you file within a year of turning 65 or becoming disabled.
The process can vary slightly from one county to the next. In Travis County, it is easiest to apply for your homestead application online. The online application pre-fills data from Travis County Records which saves you time filling out the form. You can also track the application as it is processed and the application will be processed quicker.
If you do not want to file online you can also fill out the Texas Homestead Exemption Form (50-114) and mail it in with associated documentation.
In order to submit a homestead exemption application, your driver’s license or state-issued ID must show the property address.
Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application.
Texas has two distinct laws relating to homestead exemptions:
The Texas Tax Code offers homeowners a way to apply for homestead exemptions to reduce local property taxes.
The Texas Property Code allows homeowners to designate their homesteads to protect them from a forced sale to satisfy creditors. This law does not, however, protect the homeowner from tax foreclosure sales of his or her home for delinquent taxes.
Consult with a lawyer if you need details on homestead protection against legal actions.
If you have any further questions regarding this topic, please see the “property tax exemptions” section of the Texas Comptroller’s website. Travis County maintains a Property Tax FAQ with information that will likely answer all the questions you may have about Homestead Exemptions (look under the Exemptions Section). You can also get more information from the Travis County Appraisal District Website.
