The Homestead Exemption in Texas

An adult is entitled to a $140,000 exemption from school district taxes on the appraised value of the residence homestead. A residence homestead is a structure (including a mobile home) with up to 20 acres of land and improvements used for the residence, owned and occupied as the owner's principal residence. Any taxing unit (county, city, school district or special district) may also adopt a local option exemption of up to 20% of appraised value (at least $5,000). There is also a $3,000 homestead exemption from county taxes levied for the purposes authorized by Article VIII, Section 1-a of the Texas Constitution.

File the residence homestead application (Comptroller Form 50-114, with affidavits on Form 50-114-A) with the chief appraiser of the appraisal district in each county where the property is located. An applicant not named on the recorded deed, such as an heir property owner, must provide an ownership affidavit and, for heirs, the prior owner's death certificate, a recent utility bill and any related court record. Once allowed, a homestead exemption need not be claimed again until the property changes ownership or the owner's qualification changes; the chief appraiser may ask for a new application only after trying to confirm eligibility and giving written notice of the specific reason.

For exemptions based on qualifications on January 1, the application must be filed before May 1; the chief appraiser may extend the deadline once for good cause by up to 60 days. A late residence homestead application must be accepted if filed no later than two years after the delinquency date for the taxes on the homestead; if approved, unpaid tax on the exempted amount is removed or paid tax is refunded automatically.

The appraised value of a residence homestead may not increase in a tax year by more than the lesser of its market value or the prior year's appraised value plus 10% plus the market value of new improvements. The limit takes effect on January 1 of the tax year after the owner first qualifies the property for the homestead exemption and ends when neither the owner nor the owner's spouse or surviving spouse qualifies for it.