Property tax exemptions are a critical tool for Texas homeowners to reduce their taxable property value and lower their tax bills. Recent legislative changes have significantly expanded the benefits of the homestead exemption, providing even greater financial relief.
1. General Homestead Exemption
As of January 1, 2023, the homestead exemption for school district property taxes increased from $40,000 to $100,000, under the Property Tax Relief Act (Senate Bill 2).
- Eligibility: You must occupy the property as your primary residence as of January 1.
- Benefit: This change saves homeowners an average of $681 annually, based on the statewide independent school district average tax rate. If you already had the exemption, the increased amount applied automatically starting with the 2023 tax year.
2. Over-65 Exemption
For senior homeowners, the homestead exemption provides additional relief.
- Eligibility: Available to homeowners aged 65 or older. Proof of age, such as a driver’s license, is required.
- Benefit: The exemption amount is $110,000, effective January 2023, for school district property taxes. This also freezes school district taxes at their current level, protecting seniors from future increases.
3. Disabled Person Exemption
The disabled person exemption provides similar benefits to the over-65 exemption, offering substantial tax savings.
- Eligibility: You must meet the Social Security Administration’s disability requirements or provide equivalent documentation.
- Benefit: Includes an additional $10,000 exemption for school district taxes and a freeze on school district taxes at current levels.
4. Disabled Veterans Exemption
Veterans with service-related disabilities qualify for significant tax relief through the disabled veterans exemption.
- Eligibility: Determined by the percentage of disability as assessed by the U.S. Department of Veterans Affairs.
- Benefit: Exemptions range from $5,000 to a full exemption for veterans with a 100% disability rating or those deemed unemployable due to service-related injuries.
5. Surviving Spouse Exemptions
Surviving spouses of qualified individuals may inherit their property tax benefits.
- Eligibility: Includes spouses of veterans, first responders killed in the line of duty, and those aged 55 or older who inherit a property with an existing exemption.
- Benefit: Continues the exemption benefits or tax freezes enjoyed by the deceased spouse.
6. Agricultural Land Valuation
Homes located on agricultural land may qualify for valuation based on the land’s productive capacity rather than its market value.
- Eligibility: The land must be primarily used for agriculture.
- Benefit: Substantially reduces taxable property value.
7. Solar and Energy Efficiency Exemptions
Homeowners who invest in renewable energy systems can benefit from additional exemptions.
- Eligibility: Installation of solar panels, wind turbines, or other qualifying systems.
- Benefit: Exempts the added value of the system from the property’s taxable value.
Applying for Exemptions
Exemption applications must be submitted to your local appraisal district by April 30. If you already have a homestead exemption, the increased exemption amount automatically applies, starting in 2023.
Simplify the Process with Slash-Tax
Navigating property tax exemptions can be time-consuming and complex. Slash-Tax offers expert services to identify and secure every exemption you qualify for, ensuring you maximize your savings with ease. Let us simplify the process and protect your rights as a homeowner.
Suggested Images for This Article
- Homestead Exemption Update: A house with a shield icon labeled “$100,000 Homestead Exemption” with a bold “Effective January 2023” banner.
- Exemption Overview Infographic: A chart listing exemptions with icons for each, including a flag for veterans, a shield for homesteads, and a sun for solar systems.
- Senior Homeowner Tax Relief: A smiling elderly couple with a house in the background, emphasizing the $110,000 over-65 exemption.
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