Property Tax Exemptions
New and Top Exemptions
Learn the Property Tax Exemptions that have extended deadlines
The Texas legislature passed a law in the summer of 2017. It extends the deadline to file certain exemptions.
Great news for those needing last minute help!
New Changes Summary
The deadline has been extended to two years after the default date for that year. For example, you have until January 31, 2020, to file for the 2017 tax year.
The deadline has been extended to five years after the default date for that year. For example, you have until January 31, 2020, to file for the 2014 tax year.
Top 6 Exemptions We See the Most
A complete list can is on the Texas State Comptroller Website here.
1. The Homestead Exemption.
You can claim a Homestead Exemption on your primary residence.
To qualify you must be:
1) living there as of January 1st of that year.
2) List that address on your driver’s license.
This exemption gives you a discount on many taxing areas. It helps to lower the taxable value of your home. It puts a 10% limit on the increase of the taxable value for your property each year.
Joe’s property qualifies for a Homestead Exemption in 2019. The valued started at $100,000. In 2020 the market value jumped. The new year’s value is $200,000. Therefore, the 10% tax increase will go to $110,0000 ($100,000 + 10% = $110,000). Joe’s tax bill sets to $110,000 and not the $200,000. This save Joe a lot of money. The Homestead Exemption is quite helpful in our booming market.
The deadline to file for the Homestead Exemption is annual. It is one year after taxes were due. For example, you need to file for a Homestead Exemption for the 2018 tax year by January 31st, 2020. This is one year after your tax due date.
2. The Over 65 Exemption.
The year you turn 65 years old you get another tax break. You are eligible to claim an Over 65 Exemption on your homestead. The Over 65 exemption entitles you to bigger discounts. It is even more savings than the normal Homestead exemption. Plus it puts a limit on the tax you pay to your local school district. The limit will stay until there is more “value” to add to your property.
Example: Barbara turned 65 in 2019. She qualifies for the Over 65 tax exemption. That year her Austin Independent School District (ISD) tax bill is $5,000. Her exemption freezes that tax bill for upcoming years. This means she will not pay more than $5,000 to Austin ISD. Her tax freeze stays with her going forward. It remains set at that amount as long as she is in the state of Texas.
There are more advantages with The Over 65 Exemption. It allows you to defer paying property taxes. This is in effect as long as you own the property. It will continue to accrue 8% interest each year. However, it will is due once the property has sold or transfers ownership.
3. Disabled Person’s Exemption.
The benefits of this exemption are similar to the Over 65 exemption. It includes bigger discounts from certain tax entities. Plus it freezes the tax amount for the school district jurisdiction. You must meet the Social Security Administration’s definition of disability to qualify.
4. The Disabled Veteran Exemption.
Some US veterans qualify for a Disabled Veteran exemption. They must have a disability rating of 10% or more to claim this exemption. Furthermore, the discounts vary depending on your disability rating.
5. Solar and Wind-Powered Energy Devices.
Contact our office if you have these devices on your property.
The exemption removes the value of the devices from the taxable value of the property.
You may be eligible to claim the exemption but it may not be the best strategy. In some cases the exemption will not benefit you. To get the best savings talk to a Texas Protax specialist.
The application for this exemption is due by April 30th. Your property keeps this exemption until there are changes to the equipment.
6. Exemptions for Historical or Archaeological Sites.
Is your property is a designated historic building? Is it an archaeological site? Does it have historical significance? If true, then you may be eligible for a Historical or an Archaeological Exemption.
These conditions give discounts for some jurisdictions but not all. The discounts are different for every property. Contact our office for more information.
Call or email with questions
AUSTIN (512) 339-6671 firstname.lastname@example.org HOUSTON (713) 635-9100 email@example.com
For more information:
Texas Protax FAQ