How to Apply for Your Homestead Exemption - Plus Q and A

According to the Harris County Appraisal District, A homestead exemption helps you save on property taxes by removing part of the value of your property from taxation and lower your taxes. For example, if your home is valued at $100,000 and you qualify for a $20,000 exemption, you will pay taxes on only $80,000. Here is how and where to apply for your homestead exemption, in addition to require documents needed to complete your application process. I have also included some questions and answers.

To apply for a Homestead Exemption, you must submit the following to the Harris Central Appraisal District (HCAD) along with the completed form:

• A copy of your valid Texas Driver's License showing the homestead address, this required but can be waved if you are:
  a resident of a facility that provides services related to health, infirmity, or aging; or certified for participation in the address confidentiality program administered by the AG.
• The license must bear the same address as the property for which the homestead exemption is requested (homestead address) unless you are:
  active duty military or their spouse, showing proof of military ID and a utility bill.
  a federal or state judge, their spouse or a peace officer whose address information has been omitted from your driver's license. You must provide a copy of your application for the driver's license.
• If you do not have a driver's license, you may submit a copy of a state issued personal ID showing the homestead address.
  A completed Homestead Exemption Application showing the homestead address.
  Proof of disability, for those who are applying for an exemption due to disability.

If you live in Harris County, to file online click here

For Montgomery County click here and choose homestead exemption for available forms drop down

For Bazoria County: click here to complete, sign and submit the form

Fort Bend County - You need to create an account before submitting your online form.

                                   Questions and Answers

What Kinds of Homestead Exemptions Are Available?

• School taxes all homeowners. If you qualify for the homestead exemption, you will receive at least a $25,000 homestead exemption on the value of your home for school district taxes.
• County taxes all homeowners. Harris County currently provides a 20% optional homestead exemption to all homeowners. This means, for example, that if your home is valued at $100,000, the exemption will reduce its taxable value for Harris County taxes by $20,000 to $80,000.
• Optional exemptions all homeowners. Any taxing unit, including a school district, city, county or special district, may offer an exemption for up to 20% of your home's value. The amount of an optional exemption can't be less than $5,000, no matter what the percentage is. For example, if your home is valued at $20,000 and your city offers a 20% optional exemption, your exemption is $5,000, even though 20% of $20,000 is just $4,000. The governing body of each taxing unit decides whether it will offer the exemption and at what percentage. This percentage exemption is added to any other homestead exemption for which the applicant qualifies.

Application Deadlines

You should file your regular residential homestead exemption application between January 1 and April 30. Early applications will not be accepted. If your application is postmarked by April 30. If you miss the April 30th deadline you can still apply:

For a general exemption: up to two years after the date taxes became delinquent for the year (usually February 1 of the year following the tax year).

For an over-65 or disabled person: if you turn 65, become totally disabled, or acquire a property during the year, you can apply and have the over-65 or disability exemption activated for that year. The deadline to apply for an over-65 or disabled person's exemption for the year in which you qualify is the first anniversary of the date you qualify. In other words, you have one year from the date you qualify to apply. For more information please visit here:

Homestead Cap

An additional benefit of the general homestead exemption, especially in an appreciating housing market, is the homestead cap, or limitation on increases in appraised value. The cap applies to your homestead beginning in the second year you have a homestead exemption. The cap law provides that if you qualify, the value on which your taxes will be calculated (called your appraised value) cannot exceed the lesser of:

1. This year's market value; or
2. Last year's appraised value, plus 10% plus the value added by any new improvements made during the preceding year. If homes are appreciating at more than 10% per year, the cap can provide substantial tax savings. For more information, click here.

Over-65 Homeowners

A person who is 65 or older may receive additional exemptions. You are eligible for these exemptions as soon as you turn 65; you don't need to be 65 as of the first of the year to apply. School districts automatically grant an additional $10,000 exemption for qualified persons who are 65 or older. An additional advantage of the over-65 exemption is the school tax ceiling. Once you qualify, your school taxes will not increase unless you make improvements to the home. Cities, the county, and other taxing units may, but are not required to, offer over-65 homestead exemptions of at least $3,000 and sometimes much more. For more information, please call the Harris County Appraisal District at  713.957.7800

Homeowners with Disabilities

A person with a disability also may get exemptions. Disabled means either (1) you can't engage in gainful work because of physical or mental disability or (2) you are 55 years old and blind and can't engage in your previous work because of your blindness. If you receive disability benefits under the federal Old Age, Survivors and Disability Insurance Program administered by the Social Security Administration, you will qualify.

If you qualify as a disabled person, you can receive a $10,000 exemption for school taxes, in addition to the $25,000 exemption for all homeowners. And, any taxing unit can offer an exemption of at least $3,000 from the home value of disabled homeowners. Disabled homeowners also qualify for a school tax ceiling, the same as for those who are over-65. For more information, please call the Harris County Appraisal District 713 957 7800.

100% Disabled Veteran's Homestead Exemption

You can qualify for this exemption on your homestead if you have a disability rating of 100% or individual unemployability from the Veterans' Administration and you receive 100% disability payments from the VA. Your disability must be service connected. If you qualify, 100% of the value of your residence homestead will be exempted.

Selling or Buying a Home with an Existing Homestead Exemption

When you sell or buy a home, the taxes for the year will generally be prorated at the closing. This doesn't actually change your tax liability; the tax assessor will calculate that later in the year. The proration at closing will be based on estimated taxes due. You should be aware of the rules regarding homestead exemptions so that you are prepared if your actual tax liability turns out to be different.

If you buy or sell a home that has only a general homestead exemption on it, the exemption normally stays in place for that entire tax year. The final taxes for the year will reflect the exemption. However, the new owner will have to qualify for the exemption by filing an application in his or her own name for the following year.

If you buy or sell a home that has an existing over-65 or disability exemption, the rules are different. Whether the over-65 or disability exemption stays in place depends on whether the person who qualified for that exemption transfers it to a different homestead during the same year. For more information, please click here

Have You Inherited Your Home?

Homeowners who have inherited their home may qualify for a money-saving homestead exemption.  A new Texas law enacted in 2019 makes it easier for heir property owners to qualify for a homestead exemption by creating more accessible application requirements.  Property owners who are receiving a partial homestead exemption on heirship property can now apply for a 100 percent homestead exemption even when the home has co-owners. Please click here to see the entire brochure.

For any questions or additional assistance, you are encouraged to call an HCAD representative at the numbers and location listed on the contact page.

Source: Harris County Appraisal District

Image: Harris County Appraisal District

Thank you so much for stopping by, and remember, if you are thinking of purchasing your new home, or selling an existing one, please give us a call. It will be a pleasure to work with you. Until next time...Diana

Astor & Eaton Realty
Diana Walton
Broker
713.208.8013
www.astoreaton.com
Write to Diana Walton at homes@astoreaton.com
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