All you need to know about Homestead Exemptions in Texas

What is a Homestead Exemption?

A homestead exemption offers homeowners significant financial benefits and legal protections. Essentially, it reduces the taxable value of your home, resulting in lower property taxes. Additionally, it provides a legal shield against certain creditors, ensuring that your home remains safe from certain legal actions.

How to know if i am eligible for a homestead exemption?

1. Homeownership: You must own your home, even partial ownership counts towards eligibility.

1. Principal Residence: The home must serve as your primary and principal residence.

2. Texas Residency: You must have a Texas driver’s license or Texas-issued personal identification certificate. It's important that the address on your ID card matches your principal residence address.

Homeowners who qualify for the general residence homestead exemption may also be eligible for additional exemptions if they meet specific criteria:

• Over 65 Exemption: Available for homeowners aged 65 and older. If you are over 65 at the time of your passing, your surviving spouse, if aged 55 or older, may receive your over-65 exemption.

• Disability Exemption: Designed for homeowners (not their children) with disabilities that would qualify for Social Security Disability benefits. If you are a senior with a disability, you can choose only one of these exemptions.

• Veteran Exemption: Applicable to veterans with disabilities, their spouses, and survivors, as well as spouses and survivors of military personnel killed on active duty. The amount of the exemption varies depending on the percentage of service-connected disability.

Homestead Value Cap: Limiting Property Tax Increases

Texas Property Tax Code Section 23.23 imposes restrictions on the annual increase in the total assessed value of a property under a homestead exemption, the homestead cap restricts the annual increase in the assessed value of a homeowner's property for tax purposes, the cap limits the increase to a maximum of 10% per year. This prevents property taxes from rising sharply, even if the market value of the property appreciates rapidly.

Legal Protections Offered by Homestead Exemptions

In Texas, the homestead exemption shields a home from some creditors following the death of a homeowner, spouse, or declaration of bankruptcy. This means that creditors cannot force the sale of the homestead property to satisfy debts in certain situations, safeguarding your home and your equity. However, it's essential to note that the extent of protection may vary depending on state laws and individual circumstances.

Step by step: how to apply for a homestead exemption in Texas

1. Determine Eligibility: Ensure you meet the eligibility criteria for the homestead exemption, including homeownership, residency, and other specific requirements based on factors such as age, disability, or military service.

2. Gather Required Documents: Collect the necessary documentation, which typically includes proof of ownership (such as a deed), proof of residency (such as a Texas driver's license or ID card), and any additional documents required for specific exemptions (such as proof of age or disability).

3. Complete the Application: Obtain the appropriate application form for the homestead exemption from your county appraisal district's website or office. Fill out the application accurately and completely, providing all required information and supporting documentation.
   For example, for Harris Central Appraisal District, you can find the form here: https://hcad.org/hcad-forms/hcad-all-forms/#forms-711 under Residential Exemption form number 11.13

4. Submit the Application: Once the application is completed, submit it to your county appraisal district. This can typically be done online, by mail, or in person at the district office.

5. Wait for Processing: Allow time for the appraisal district to process your application. Processing times may vary depending on the volume of applications received and other factors.

6. Receive Confirmation: Once your application has been processed and approved, you will receive confirmation of your homestead exemption status. This confirmation may be provided electronically or by mail.

7. Check Renewal Requirements: Familiarize yourself with any renewal requirements for the homestead exemption. In some cases, such as the general residence homestead exemption in Texas, the exemption remains in place without needing annual renewal. However, other exemptions may require periodic renewal or reapplication.

8. Update as Necessary: Keep your homestead exemption information up to date, especially if there are any changes to your homeownership status, residency, or eligibility for specific exemptions.

9. Seek Assistance if Needed: If you encounter any difficulties or have questions about the application process, don't hesitate to reach out to your county appraisal district for assistance. They can provide guidance and support to ensure your application is completed correctly. Additionally, at DELCOR, we are here to assist you every step of the way. We can help you fill out your homestead application accurately and efficiently, ensuring that all necessary information is provided. If you have any questions regarding eligibility criteria or need clarification on any aspect of the homestead exemption process, our team is readily available to provide answers and guidance

10. Enjoy Tax Savings: Once your homestead exemption is approved, enjoy the tax savings and the financial relief offered by the homestead exemption.