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.
Texas Homestead Exemption in Texas
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:
- Over 65 exemption: For homeowners 65 and older. If you are over 65 when you die, your surviving spouse 55 or older will get your over-65 exemption.
- Disabled Persons Homestead Exemption: For homeowners (not their children) who have a disability that would qualify for Social Security Disability benefits. If you are a senior and have a disability, you can take only one of the exemptions.
- Disabled Veterans Exemption: For veterans who have a disability, their spouses and survivors, and spouses and survivors of military personnel killed on active duty. The amount of the exemption depends on the percentage of service-connected disability. 100% disabled equals 100% exemption.
How Does the Standard Exemption Work?
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:
- Section 11.13(n) gives taxing units the option to offer a separate homestead exemption of up to 20% of the appraised property value — but not less than $5,000.
- Section 11.13(a) requires a homestead exemption of $3,000 to be offered in those counties that collect flood-control or “farm-to-market” taxes.
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:
- $10,448 without the Homestead Exemption
- $9,208 with a Homestead Exemption
A significant saving!
Who Qualifies for a Homestead Exemption?
The qualification criteria for the homestead exemption are:
- Must be an individual (not a corporation or other business entity)
- The home is your primary residence as of January 1 of any tax year. In other words, you can’t use a homestead exemption on a second/vacation home.
- You have not claimed any other homestead in or outside of Texas.
- You live in a house, condominium or mobile home on owned or leased land
- Your land is 20 acres or less and for private, residential use
- Property is not used for agricultural or a commercial business
How Do I Apply for a Homestead Exemption in Travis County?
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.
When do I apply for a homestead exemption?
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.
How do I File a Travis County Homestead Exemption?
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.
To start, go to the Travis Central Appraisal District website and click on the Online Homestead Application.
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.
Will the homestead protect me in case of a lawsuit?
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.
Additional Information on Homestead Exemption
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.
