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Texas Property Tax Exemptions While Texas has no state property tax, each county levies and collects taxes through their appraisal district (CAD). The first step to lowering these taxes is to use every exemption available to you. Exemptions shield part of your property’s value from taxation, essentially making your property worth less for taxable purposes. This is the easiest way to lower taxes in Texas, and doing so is simple. While the homestead type is the most common, there also exist exemptions for those over 65, disabled veterans, and more. Some of these options will stack with each other, granting larger savings for those that qualify.

What Is the Texas Homestead Exemption? The Lone Star State boasts a variety of different exemptions meant to aid homeowners in reducing their yearly tax bill. The homestead exemption is the most famous and the most flexible of the lot, and the perfect starting spot on your journey to lowering your taxable value. When applied to your primary residence, it allows you to reduce your taxable value. Since your bill is predicated on this figure, reducing it typically cuts your tax burden as well. If your home has been appraised by your local CAD to be valued at $300,000, and you receive the typical homestead reduction of $100,000, then you will only be taxed on the amount of $200,000. It should be noted that recent legislation may raise this reduction to $140,000, if the public votes for it in November of 2025.

Who Qualifies for Exemptions? To be eligible, you must:  Own and occupy the home as your principal residence on January 1 of the tax year  Not claim a homestead exemption on any other property  Have a Texas driver’s license or another state ID that matches the address you are trying to claim the exemption on  A deed number or a copy of the deed to your property

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Types of Texas Tax Exemptions Available In addition to the basic homestead option, other homeowners may also qualify for exemptions such as: Over-65 Disability Veterans and Surviving Spouse  Agricultural/Open-Space (Ag Use)

How to Apply for a Texas Property Tax Exemption You can apply through your CAD by completing the appropriate form and submitting required documentation, like a Texas driver’s license or ID with the property address. These must be submitted by April 30 to go into effect for the tax year.

Combine Exemptions with Tax Protests Even if you qualify for one or more exemptions, you can still challenge your property’s market value. In fact, combining tax breaks for homeowners with a well-executed appeal often yields the highest savings.

Why Choose O’Connor? With decades of experience, O’Connor helps thousands of Texas homeowners file exemptions, appeal their property values, and lower their tax bills with no upfront fees. You don’t pay unless we reduce your taxes.

Property Tax Exemptions FAQs

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