TEXAS PROPERTY TAX EXEMPTIONS

TEXAS PROPERTY TAX

EXEMPTIONS

WHAT IS AN EXEMPTION?

An exemption removes part of the value of your

property from taxation and lowers your taxes.

For example, if your home is valued at $100,000

and you qualify for a $25,000 exemption, you

pay taxes on your home as if it was worth only

$85,000. Other than an exemption for disabled

veterans or survivors these exemptions apply

only for your homestead. They do not apply to

other property you own.

DOES YOUR HOME QUALIFY FOR AN

EXEMPTION?

You must own your home.

To qualify for a general or disabled homestead

exemption you must own your home on January

If you are 65 years of age or older you need not

own your home on January 1. You will qualify

for the over 65 exemption as soon as you turn

65, own the home and live in it as your principal

residence.

You homestead can be a separate structure,

condominium or a mobile home located on

leased land as long as you own it.

If you are not the sole owner of the home you

will receive only a portion of any qualified

exemption based on your percent of ownership.

For example you own a 50% interest in a

homestead valued at $100,000 for a total value

of $50,000. You will receive 50% of a $25,000

school homestead exemption, or $12,500.

You must use the home as your principal

residence.

If you have more than one house you can only

get exemptions for your main or principal

residence. You must live in this home on January

If someone other than you lives in the home and

you live somewhere else the property does not

qualify for the exemption.

WHAT HOME EXEMPTIONS ARE THERE?

GENERAL HOMESTEADS

School districts grant a $25,000 general

residential homestead exemption on your

home’s value for school taxes.

Any taxing unit, including a school district,

city, county, or special district may offer

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 you home is valued at

@20,000 and your city offers a 20% exemption,

your exemption is $5,000 even though 20% of

$20,000 is just $4,000.

Each taxing unit decides whether it will

offer the exemption and at what percentage.

This percentage exemption is added to any

other home exemptions for which you qualify.

AGE 65 OR OLDER EXEMPTIONS

School exemptions. If you are 65 or older

your residence homestead will qualify for more

exemptions.

You will qualify for a $10,000 exemption for

the school taxes on your home’s value. This is in

addition to the $25,000 exemption for all

homeowners.

If you qualify for both the $10,000

exemption for over-65 and the $10,000

exemption for disabled homeowner, you must

choose one or the other. You cannot receive

both.

Optional Exemptions. In addition to the

$10,000 exemption for school taxes, any taxing

unit including a school district can offer an

additional exemption of at least $3,000 for

taxpayers age 65 or older.

Tax Ceiling. Once you receive an over-65

homestead or disability exemption, you get a

tax ceiling for that home on your total school

taxes. The school taxes on your home cannot

increase as long as you own and live in that

home. The tax ceiling is the amount you pay in

the year that you qualify for the over-65

homeowner exemption. The school taxes on

your home may go below the ceiling but the

school taxes will not be more thee amount of

your ceiling.

However, your tax ceiling can go up if you

improve your home (other than normal repairs

or maintenance). For example, if you add a

garage or a game room to your room your tax

ceiling can go up. Also, you tax ceiling will

change if you move into a new home.

Transporting your tax ceiling to a new

residence. If you purchase another home you

may qualify for the over-65 exemption when

you live in the new home as your principal

residence. You may transfer the percentage of

school tax paid based on our former home’s

over-65 school tax ceiling to the new home. For

example, if you currently have a tax ceiling of

$100 but would pay $400 without the tax ceiling

the percentage of tax paid is 25%. If the taxes on

your new home are $1,000 the new school tax

ceiling would be $250 or 25% of $1,000. You

may request a certificate from the appraisal

district for the former home to take to the

appraisal district for your new home.

Surviving Spouse. When a homeowner who

has been receiving the school tax ceiling dies the

ceiling transfers to the surviving spouse if the

survivor is 55 or older and has ownership in the

home. The survivor must apply to the appraisal

district for the transfer. The ceiling remains in

effect as long as the spouse lives in the home.

Tax deferral. If you are a homeowner age

65 or older you may defer or postpone paying

any delinquent property taxes on your home for

as long as you own and live in it. To postpone

your tax payment, file a “tax deferral affidavit”

with your appraisal district. The deferral is for all

delinquent property taxes of the taxing units

that tax your home.

A tax deferral only postpones paying your

taxes; it doesn’t cancel them. Interest is added

at the rate of 8% a year. Once you no longer

own your home or live in it past taxes and

interest become due. Any penalty and interest

that was due on the tax bill for the home before

the tax deferral will remain on the property and

also become due when the tax deferral ends.

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

through the Social Security Administration you

will qualify.

Disability benefits from any other program

do not automatically qualify you for this

exemption. To establish your eligibility for the

exemption you will need to provide currently

dated letters from two physicians which state

that your disability meets the Old-Age, Survivors

and Disability Insurance Act definition and date

your disability began.

If disabled you will qualify for 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 taxpayers

with disabilities.

Are you a disabled veteran or survivor?

You may qualify for a property tax

exemption if you are either (1) a veteran who

was disabled while serving with the US armed

forces or (2) the surviving spouse or child (under

18 years of age and unmarried) of a disabled

veteran or a member of the armed forces who

was killed while on active duty. You must be a

Texas resident.

You must have documents from either the

Veterans’ Administration or the branch of the

armed forces that show the percentage of your

service-related disability. Your disability rating

must be at least 10%. If you are a surviving

spouse or child you must have the veterans’

disability records. You may need other

documents such as proof of marriage or age.

This exemption ranges from $5,000 to

$12,000 depending on the extent of the

disability. This exemption is not only for a home

– you can apply it to any property you own on

January 1. However, you may pick only one

property to receive this exemption.

HOW TO FILE FOR AN EXEMPTION

1. Get an application form from the appraisal

district office. There is a separate

application for the disabled veterans;

exemption. Phone 903.675.9296 for forms

to be mailed to you or check our website.

2. Return the form to the appraisal district

after January 1 but no later than April 30.

Making false statements on your exemption

application is a criminal offense.

3. Provide necessary information. For

example, the appraisal district must have a

copy of your Texas Driver’s License or Texas

Personal Identification certificate.

4. If your property is valued by more than one

appraisal district you must file an

application with both of the district offices.

This occurs when your property is located in

a taxing unit that is also in a neighboring

county. Contact the appraisal district officer

if you aren’t sure.

You may file for a homestead exemption up

to one year after (a) the date you paid the

taxes on your home or (b) the date the

taxes became delinquent whichever date is

earlier. You will get a new tax bill with a

lower amount or a refund if you already

paid. Late filing does not apply to the

disabled veteran’s exemption.

5. If you are 65 this year you may file for the

over-65 exemption up to one year from the

date you turned 65.

6. If the Chief Appraiser asks you for more

information you will have at least 30 days to

reply.

7. If the Chief Appraiser denies or modifies

your exemption he must tell you in writing

within 5 days. This notice must explain how

you can protest before the appraisal review

board.

8. Once you receive a homestead exemption

or a disabled veteran’s exemption you don’t

have to apply again unless the Chief

Appraiser asks you to apply or unless your

qualifications change. If you move to a new

home you will have to fill out a new

application. If you have your 65

birthday

or become disabled you must file a new

application to receive the additional

exemption.

9. The Chief Appraiser may require a new

application by sending you a written notice

and an application form. If you don’t return

the new application you will lose your

exemptions.

Henderson County Appraisal District

P.O. Box 430

1751 Enterprise Drive

Athens, TX 75751

903.675.9296