You never want to leave money on the table when you’re buying a home or when it’s time to pay taxes. Knowing your eligibility for property tax exemptions or ways to slash your home’s taxable value keeps money in your pocket. One sizable exemption to be aware of is the Homestead Exemption. Here’s how it works, who is eligible, and how to apply:

What It Is: The Homestead Exemption is a legal provision that lowers your property taxes by removing part of your home’s value from taxation

The Benefit: It cuts your home's value before taxes are calculated and caps tax hikes at 10% per year.

The Savings: The state gives a $140,000 exemption for school taxes. Seniors and disabled homeowners get an extra $60,000, bringing their total exemption to $200,000.

For Age 65 or Older: You are eligible for an extra $10,000 savings and can have the school taxes “frozen” or locked in at a specific ceiling. 

For Disabled Veterans: You must hold a service-connected disability rating of at least 10% from the U.S. Department of Veterans Affairs (VA). The property tax reduction amount is based on your combined service-connected disability percentage.

For Disabled: If you qualify for Social Security Disability Insurance (SSDI), you can receive an additional exemption plus a school tax ceiling.

Eligibility Requirements: You must be the property owner. The property owner needs to occupy this home as their primary residence on January 1 of the tax year and not claim a homestead exemption on any other property in the state of Texas or in another state. 

Renters/tenants are not eligible for this exemption.

The Deadline: The annual deadline to apply is April 30.

Auto-Renewal After Approved: Once your initial application is approved, the exemption automatically renews annually as long as you own and occupy the home as your primary residence. Under Texas law, your local appraisal district is required to audit and verify all homestead exemptions at least once every five years. If selected, you will receive a verification letter and must re-confirm your eligibility to avoid losing the tax break.

Where to Apply: If you live in Fort Bend County, you will file your application with Fort Bend Central Appraisal District, click here to visit their website. 

If you live in Harris County, you will file your application with Harris Central Appraisal District (HCAD), click here to visit their website.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, #2 in 2022, #5 in 2023 and 2024. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.