If you felt some sticker shock when you got your property tax bill, you’re not alone. Rising home values have put Dallas and Fort Worth among the top 10 metro areas where taxes have increased the most — even as state lawmakers and city leaders offer relief in the amount homeowners pay to fund local governments, public schools and municipal services such as road maintenance. Last month, the Texas Senate approved a proposal to cut property taxes by raising the homestead exemption to $140,000; Dallas City Council made senior homeowners or those who are disabled eligible for an increase in their exemption last summer.
So those exemptions are key to lowering your taxes. “I think the best part about exemptions is that it’s free money in your pocket,” notes Matthew Huhn, lead consultant for North Texas Property Tax Services. (The company handles residential tax appeal services, with a focus on high-end properties.) Certain types of tax exemptions are applied automatically, and some require annual applications, but most that are relevant for typical homeowners require a one-time application. Filing for an exemption is “something you can do in the course of a couple of minutes,” Huhn adds.
And you still have time to do it for this year, even if you already paid your tax bill. When you apply for an exemption with your appraisal district before May 1, and it is approved, the exemption will be applied to the current year’s taxes and you can get a refund. In fact, you can apply retroactively for up to two years for certain exemptions.
Available property tax exemptions for Texas homeowners
Not sure where to begin? Start by figuring out what exemptions you’re eligible for. The most universal is the homestead exemption; every primary residence in Texas qualifies. In 2023, Texas voters approved a measure to raise the school-district tax exemption to $100,000 per homestead, a move that saved homeowners an average of $700 a year. (Under the Texas Senate’s proposed $140,000 exemption, homeowners would save an additional $363 on average, according to The Dallas Morning News reporting.)
Most people file for this exemption upon the purchase of their home, but Huhn advises you to double check your tax bill and make sure it is being applied; his company has helped many people who somehow didn’t get their homestead exemption recoup those funds.
Next, determine if you qualify for an additional $10,000 residence homestead exemption — available to homeowners age 65 and older or those who are disabled. These exemptions require verified documentation. Certain surviving spouses of senior homeowners may also be eligible. (The homestead and 65-and-over exemptions are those that can be applied for retroactively up to two years as well as for the current year, says Huhn.)
Disabled veterans or their surviving spouses may qualify for a 100% exemption, depending on the nature of the disability. A disabled veteran who is considered 100% disabled or unemployable is eligible for the 100% exemption. Surviving spouses of armed service members or first responders who lost their lives in the line of duty may also qualify for the 100% exemption.
Finally, if you have installed solar- or wind-powered energy devices on your home and it has raised your home value, you can qualify for an exemption to negate that increase.
By the way, you can download a rundown of all the homestead exemptions through the Texas Comptroller’s website.
How to get your property tax exemption
Once you’ve determined your eligibility, requesting an exemption is pretty straightforward. Go to your county’s appraisal district website to fill out the appropriate application. (They’re also on the Texas Comptroller’s site.) The applications include info on necessary documentation.
Kelly Gelson lives in The Colony and says she easily navigated applying for exemptions for both her own residence and other properties she owns. She echoes Huhn’s recommendation that you double check your property tax bill even after you are approved. Gelson qualifies for both homestead and disability exemptions, “but I was surprised when I checked my bill in December and it was like, ‘Holy moly, this is a lot higher than I was expecting.’”
She called the tax office and discovered that a clerical error meant that neither exemption was applied. “I was fortunate because I could cover [the cost] while I was waiting for the office to correct the mistake and process the exemptions,” she says.
Huhn encourages homeowners to keep written documentation to facilitate the corrections. And if your bill is still higher than you expected, consider an appeal. (Here’s what to know about filing an appeal on your own versus hiring a professional.)
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