Property Tax Exemptions

A property tax exemption excludes all or part of a property's value from property taxation, ultimately resulting in lower property taxes. A "Partial" exemption excludes a part of the value from taxation and can exclude all of the value of a property from taxation if the exemption amount exceeds the market value (i.e., homestead exemption). An "Absolute" or "Total" exemption excludes the entire property from taxation (i.e., churches).

Homeowner Exemptions

Residence Homestead Exemption

Age 65 or Older Homestead Exemption

Surviving Spouse of Person Who Received the 65 or Older Exemption

Disability Homestead Exemption

Surviving Spouse of a Person who Received the Disability Exemption

Residence Homestead Exemption for Disabled Veteran with 100% Disability

Late Filing

Benefits of Exemptions

Other Exemptions

Disabled Veteran or Survivors of a Disabled Veteran

Tax Deferral for 65 or Older or Disabled Homeowner

Charitable Exemption

Religious Exemption

Agricultural Appraisal

Freeport Exemptions for Business Personal Property

Pollution Control Property

Motor Vehicle Used for Production of Income and for Personal Activities

Appointment of Tax Consultants

Homeowner Exemptions

Residence Homestead Exemption

To qualify, you must own and reside in your home on January 1 of the tax year application is made and cannot claim a homestead exemption on any other property. If you temporarily move away from your home, you still can qualify for this exemption, if you do not establish another principal residence and you intend to return within two years, or if you are a resident of a health facility, or in the military.

If the person who qualifies for an exemption is not the sole owner of the property to which the exemption applies, an application for a residence homestead exemption must be completed by each owner of the residence. Exemptions are allocated according to percent of ownership interest the applicant has in the property.

The exemption application must be completed and include:

IMPORANT NOTE: The property address on the exemption application must match the address listed on the applicant’s Texas driver’s license/Texas identification certificate and vehicle registration receipt or utility bill; otherwise the Chief Appraiser is prohibited from approving the exemption.

It is a crime to make false statements on a homestead application or to file on more than one property.

Age 65 or Older Homestead Exemption

You may qualify for this exemption on the date you become age 65.

IMPORTANT NOTE: The property address on the exemption application must match the address listed on the applicant’s Texas drivers license/Texas identification certificate and vehicle registration receipt or utility bill; otherwise the Chief Appraiser is prohibited from approving the exemption.

If you qualify for the 65 or Older Exemption, there is a property tax “ceiling” that automatically limits School taxes to the amount you paid in the year that you qualified for the homestead and the 65 or Older exemption. A County, City or Junior College may also limit taxes for the 65 or Older Exemption if they adopt a tax ceiling. Tax ceiling amounts can increase if you add improvements to your home (i.e., adding a garage, room or pool).

In addition, 65 or Older homeowners who purchase or move into a different home in Texas may also transfer the percentage of school taxes paid, based on the former home’s school tax ceiling. This is commonly referred to as a Ceiling Transfer. To transfer your tax ceiling for the purposes of County, City or Junior College District taxes, however, you must move to another home within the same taxing unit. You must request a certificate from the Appraisal District for the former home and take it to the Appraisal District for the new home, if it is in a different district.

Surviving Spouse of a person who received the 65 or Older Exemption

If qualified, a Surviving Spouse may receive an extension of the 65 or Older exemption and the tax ceiling. To qualify, your deceased spouse must have been receiving the 65 or Older exemption on the residence homestead or would have applied and qualified before the spouse's death. The Surviving Spouse must have been age 55 or older on the date of the spouse’s death. You must have ownership in the home, proof of death of your spouse and the exemption application must be completed and include:

Disability Homestead Exemption

Persons with disabilities may qualify for this exemption if they 1) qualify for disability benefits under the federal Old Age, Survivors and Disability Insurance Program administered by the Social Security Administration or 2) have a physician's statement indicating the date the disability began and that you are unable to engage in any substantial gainful work for a period which has lasted or can be expected to last for a continuous period of not less than 12 months or that can be expected to result in death.

The exemption application must be completed and include:

IMPORANT NOTE: The property address on the exemption application must match the address listed on the applicant’s Texas driver’s license/Texas identification certificate and vehicle registration receipt or utility bill; otherwise the Chief Appraiser is prohibited from approving the exemption.

If you qualify for the Disability Exemption, there is a property tax “ceiling” that automatically limits School taxes to the amount you paid in the year that you qualified for the homestead and Disability exemption. A County, City or Junior College may also limit taxes for the Disability Exemption if they adopt a tax ceiling. Tax ceiling amounts can increase if you add improvements to your home (i.e., adding a garage, room or pool).

In addition, Disabled homeowners who purchase or move into a different home in Texas may also transfer the percentage of School taxes paid, based on the former home’s school tax ceiling. This is commonly referred to as a Ceiling Transfer. To transfer your tax ceiling for the purposes of County, City or Junior College District taxes, however, you must move to another home within the same taxing unit. You must request a certificate from the appraisal district for the former home and take it to the appraisal district for the new home, if it is in a different district.

You may not claim both the Age 65 or Older and Disability exemption in the same tax year.

Surviving Spouse of a Person who Received the Disability Exemption

There may be additional benefits for the Age 55 or Older Surviving Spouse of a person who was receiving the Disability exemption before their death. You may contact the Customer Service department for additional information at 214-631-0910.

Residence Homestead Exemption for Disabled Veteran with 100% Disability

You qualify for this exemption if you are a disabled veteran who receives from the United States Department of Veterans Affairs or its successor 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disability or of individual unemployability. Beginning 2009, this entitles you to an exemption of the total appraised value of your residence homestead.

An exemption application must be completed and accompanied with a copy of your V.A. award letter or other document from the United States Department of Veterans Affairs showing 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or individual unemployability.

A surviving spouse does qualify for the 100% Disabled Veteran Homestead Exemption, but surviving child does not qualify.

Late Filing

When filing for the Residence Homestead exemptions, you must file an application no later than one year after the delinquency date.

Benefits of Exemptions

All school districts in Texas grant a reduction of $15,000 from your market value for a General Residence Homestead exemption. Some taxing units also offer additional optional reductions for the homestead exemption. In addition, each school district will grant a minimum reduction of $10,000 from the market value for the 65 or Older exemption. For optional exemptions, the governing body of each taxing entity decides whether it will offer the exemption and at what percentage or amount.

Other Exemptions

Disabled Veteran or Survivors of a Disabled Veteran

You qualify for this exemption if you are a veteran of the U.S. Armed Forces and your service branch or the Veterans Administration has officially classified you as disabled with a percentage of 10% or more. You must be a Texas resident. Your application can apply to any one property you own on January 1 on which property taxes are assessed. You must complete an application and attach a copy of a current dated letter from the Veterans Administration reflecting the percent of disability awarded. You must file the application by April 30 or no later than one year after the delinquency date. A surviving spouse or child may also qualify to continue this exemption; a surviving spouse may continue the exemption if the survivor does not remarry. When the disabled veteran attains age 65, is totally blind in one or both eyes, or has lost the use of one or both limbs, they will qualify for 100% of the maximum exemption amount of $12,000 offered regardless of the disability percentage awarded by the V.A.

A surviving spouse or child of an armed forces member killed on active duty may qualify for this exemption. The surviving child, under age 18 and unmarried, or surviving spouse must be a Texas resident. An application must be completed along with a letter from the Veterans Administration showing the person died while on active duty, copy of your marriage license; a surviving child must attach a copy of proof of age and relationship to the deceased.

Tax Deferal for Age 65 or Older or Disabled Homeowner

If you are a homeowner who qualifies for the Age 65 or Older or the Disability exemption, you may also defer or postpone paying any property taxes on your home for as long as you own and live in it. It is important to note that this deferral only postpones your taxes and does not cancel them. It also accrues eight (8) percent interest annually until the deferral is removed. When the property is sold or the ownership is transferred to the estate/heirs, the taxes and accrued interest become payable. The Tax Deferral Affidavit form is available on this site or you may contact Customer Service at 214-631-0910.

Note: If you have an existing mortgage on your residence, the tax deferral does not prevent your mortgage company from paying delinquent taxes; a tax deferral applies only to the collection of taxes.

Charitable Exemptions

An organization that qualifies as a charitable organization is entitled to certain exemptions from taxation. To qualify, the organization must be organized exclusively to perform religious, charitable, scientific, literary, or educational purposes, engage exclusively in performing one or more of many charitable functions. A charitable organization must be operated in a way that does not result in accrual of distributable profits, realization of private gain resulting from payment of compensation in excess of a reasonable allowance for salary or other compensation for services rendered, or realization of any other form of private gain, and some charitable organizations must be organized as a non-profit corporation as defined by the Texas Non-Profit Corporation Act. See the Texas Property Tax Code in Section 11.18 for more details (link available on this site). The application is available on this site or you may contact Customer Service at 214-631-0910.

Religious Exemptions

An organization that qualifies as a religious organization is entitled to certain exemptions from taxation. To qualify, the organization must be organized and operated primarily for the purpose of engaging in religious worship or promoting the spiritual well being of individuals. The organization must be operated in such a way that no individual profits (other than salary) and the organization's bylaws, charter or other regulations must pledge its assets for use in performing the organization's religious functions. See the Texas Property Tax Code in Section 11.20 for more details (link available on this site). The application is available on this site or you may contact Customer Service at 214-631-0910.

Agricultural Appraisal

Land designated for agricultural use is appraised at its value based on the land's capacity to produce agricultural products. The value of land based on its capacity to produce agricultural products is determined by capitalizing the average net income the land would have yielded under prudent management from production of agricultural products during the five (5) years preceding the current year. Property owners may qualify for agricultural appraisal under two different laws. You may refer to Subchapter C, Section 23.41 and Subchapter D, Section 23.51 of the Texas Property Tax Code (link available on this site) for details of these laws or you may consult with the appraisal district. The open-space land (1-d-1) application is available on this site or you may contact Customer Service at 214-631-0910.

Freeport Exemptions for Business Personal Property

Material that is transported outside of this state not later than 175 days after the date the person who owns it on January 1 acquired it, or imported it into this state, and assembled, manufactured, repaired, maintained, processed, or fabricated and shipped the materials out of the state during the required time is freeport goods. An application for this exemption must be filed with the appraisal district by April 30 each year. Copies of this application complete with instructions and supplemental forms are available on this site or obtained from the appraisal district.

Pollution Control Property

A person is entitled to an exemption from taxation of all or part of real and personal property that the person owns and that is used wholly or partly as a facility, device, or method for the control of air, water, or land pollution if it qualifies on January 1. A person seeking an exemption under this section shall provide to the chief appraiser an exemption application on or before April 30 and a copy of the letter issued by the executive director of the Texas Commission on Environmental Quality under Subsection (d) determining that the facility, device, or method is used wholly or partly as pollution control property. A person seeking this exemption must render the pollution control property when filing a timely rendition.

Motor Vehicle Used for Production of Income and for Personal Activities

An individual is entitled to an exemption from taxation of one motor vehicle the individual owned on January 1. The exemption will only apply to a vehicle used in the course of their occupation or profession and also used for personal activities that do not involve the production of income. This exemption does not apply to a motor vehicle used to transport passengers for hire (such as but not limited to, a taxi, bus, or limousine). You must file the application between January 1 and April 30. Attach a copy of the current vehicle registration receipt to the application. Failure to do so will result in the denial of the exemption. You may protest a denial of the exemption to the Appraisal Review Board. For the purposes of this application, an individual is one person or owner, as in a sole proprietor (not a partner, corporation, or cooperative). Motor vehicle means a passenger car or light truck. Passenger car means a motor vehicle, other than a motorcycle, golf cart, taxi, bus or limousine, designed or used primarily for the transportation of persons. Light truck means a commercial motor vehicle that has a manufacturer’s rated carrying capacity of one ton or less.

Appointment of Tax Consultants

A person may not perform property tax consulting services for compensation unless the individual is a registered property tax consultant or a registered senior property tax consultant. Consultants must complete Appointment of Agent forms listing each account the consultant is authorized to represent. That form must be on file with the appraisal district prior to actions taken on behalf of the tax consultant's client. Check with the appraisal district for more details on applying for this form.