Index
Texas Homestead Exemption & Property Taxes
Summary
If you own a home in Texas and use it as your primary residence, you can claim a Homestead Exemption to lower your property taxes and cap how much your taxable home value can increase each year.
Rights & Rules
- 01.You get a massive discount on your property's taxable value for school taxes (typically a $100,000 exemption).
- 02.Your home's appraised value for tax purposes cannot increase by more than 10% per year, no matter how much the housing market goes up.
- 03.The exemption protects your home from being seized by most general creditors to pay off debts (exceptions: your mortgage, property taxes, and mechanic's liens).
- 04.You only need to apply for this exemption once; it stays on the property as long as you own and live in it.
Penalties
- 01.If you fail to file for the exemption, you will pay significantly higher property taxes, and your home's assessed value can skyrocket without the 10% cap.
Verified Citations
Texas Property Code Section 41.001 & Tax Code 11.13
Source"A homestead and one or more lots used for a place of burial of the dead are exempt from seizure for the claims of creditors except for encumbrances properly fixed on homestead property."