The Homestead Exemption is a legal provision that removes some or all of the property taxes on a homeowner’s primary residence, thereby providing financial relief to homeowners.
In Texas, the Homestead Exemption can significantly reduce the property taxes owed on a home by allowing homeowners to exempt a portion of their property’s value from taxation. This is particularly important in areas like Houston, where property values have surged in recent years.
To qualify for the Homestead Exemption, the homeowner must occupy the property as their principal residence and must apply for the exemption through their local appraisal district. Once granted, the exemption typically applies to the home for as long as it remains the owner’s primary residence.
There are several types of Homestead Exemptions available in Texas:
-
General Homestead Exemption: This exemption provides a reduction in the appraised value of the home for school district taxes. For the general exemption, a portion of the home’s value—up to $40,000—is exempt from taxation for homeowners aged 65 or older or who are disabled.
-
Over 65 or Disabled Homestead Exemption: Homeowners who are 65 years old or older or who are disabled can qualify for an additional exemption, which further reduces their property taxes.
-
Disabled Veteran Homestead Exemption: Veterans with a service-related disability may qualify for this exemption, which can eliminate property taxes entirely based on the severity of the disability.
-
Surviving Spouse Exemption: A surviving spouse of a service member who qualified for the Homestead Exemption may also qualify for continued exemption benefits.
The Homestead Exemption not only provides tax relief but can also protect homeowners from creditors in certain situations, as it creates a legal barrier against the forced sale of the home to satisfy debts. In summary, utilizing the Homestead Exemption can offer significant financial benefits and legal protections to Houston homeowners.
« Back to Glossary Index