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Property Tax Exemptions

A property tax exemption excludes all or part of a property's value from property

taxation, resulting in lower taxes. A "Partial" exemption excludes a part of the value from

taxation. It can exclude all of the value of a property from taxation if the exemption amount

exceeds the market value (i.e., homestead exemption). An "Absolute" or "Total" exemption

excludes the entire property from taxation (i.e., churches).

Homeowner Exemptions

Residence Homestead Exemption

To qualify, you must own and reside in your home on January 1 of the year application is

made and cannot claim a homestead exemption on any other property. Suppose you

temporarily move away from your home. In that case, you can still qualify for this

exemption if you do not establish another principal residence and intend to return in less

than two years. You may exceed the two-year limit if you are in military service serving

outside of the United States or live in a facility providing services related to health, infirmity,

or aging. Applications cannot be filed before the date you qualify for the exemption. If you

are a single or married homeowner filing together, you may be eligible to apply online.

Each owner, excluding married couples, residing on the property must complete

a separate application to qualify for an exemption for their interest in the property. If

different individuals own this property, you must list the percent of ownership for each

owner's name and mailing address who does not reside at the property. Exemptions are

allocated according to the percent of ownership interest the applicant has in the property.

For property owned through a beneficial interest in a qualifying trust, attach a copy of the

document creating the trust. For heir property, see below for required documents.

Application Requirements:

1. Select all exemptions that apply and check the appropriate box (Step 3)

2. Answer all questions completely (Step 4)

3. Attach all documents required by the application (Step 4 & 5)

a. For all applicants, attach a copy of your TX driver’s license or TX ID card.

You may be exempt from this requirement if you reside in a facility that provides

services for health, infirmity, or aging; or a certified participant of the Address

Confidentiality Program (ACP) for victims of family violence, sexual assault, or

stalking (attach proof). The address listed on your TX driver’s license or TX ID

card must match your homestead address. This requirement may be waived if

you hold a driver’s license under §521.121 (c) or §521.1211 for federal or state

judges and spouse or peace officers (attach proof); or for active-duty members of

the U.S. armed services and spouse (attach proof).

b. For Disabled Person Exemption, attach proof of your disability, including the

date your disability began.

c. For Age 55 or Older Surviving Spouse of individual who qualified for Age 65 or

Older Exemption or the Disabled Person Exemption, attach spouse’s death

certificate, list name of deceased spouse and date of death on the application.

d. For exemptions claimed on another property or your previous residence, list

the property address. If located outside of Taylor County, attach documentation

from the other appraisal district verifying the removal of the exemption.

e. For an applicant temporarily away from the primary residence, list the date you

intend to return to the property and the state the reason away.

f. For a residence less than 100% complete on January 1 of the year

application is made, attach proof of residency that proves you resided at your

residence even though it was not 100% complete on January 1 (such as a utility

bill dated on or before January 1 that was mailed to you at the property address).

g. For any portion of the property that is used for rental purposes or not

occupied/not used for homestead purposes (such as a room over the garage,

detached buildings, second dwelling, servants' quarters, etc.), list the square

footage not occupied / not used for homestead purposes and if rented, record the

date the property was rented. You may only claim a homestead exemption on the

portion of the property you occupy as your primary residence (§11.13).

h. For Cooperative Housing, and you have an exclusive right to occupy the unit

because you own stock in a cooperative housing corporation, attach a copy of the

Certificate of Membership Purchase.

i. For a resident of a facility that provides services for health, infirmity, or

aging, attach a letter from the facility stating the applicant’s date of residency and

confirmation of services received relating to health, infirmity, or aging.

j. For a certified participant of the Address Confidentiality Program (ACP) for

family violence, sexual assault, or stalking (Subchapter C, Chapter 56, Code of

Criminal Procedure), attach proof of participation.

k. For a holder of a driver's license under §521.121 (c) or §521.1211 for federal

or state judges and spouse or peace officers who have omitted the residence

address instead of the courthouse address in which the license holder or spouse

serves, attach a copy of the license application from TX Department of

Transportation.

l. For an active duty member of the U.S. armed services and spouse, attach a

copy of your military ID card or that of your spouse AND a copy of a utility bill for

the homestead property in your name or your spouse's name.

m. For Age 65 or Older, Heir Property, or Disabled Person who

is not explicitly identified on a deed or other recorded instrument as an owner

of the residence homestead, attach an affidavit (included with application) or

other compelling evidence establishing the applicant’s ownership of an interest in

the homestead.

n. For Manufactured Homes, attach a copy of the statement of ownership and

location issued by the TX Department of Housing and Community Affairs AND a

copy of the purchase contract or payment receipt showing you are the owner. If

you cannot establish ownership as stated above after making a good faith effort,

complete the affidavit (included with the application).

4. Complete the requested information (Step 6, Driver’s License, and Date of Birth). If

you are married, it is to your benefit for your spouse to also provide ID information.

5. Sign and date the application (Step 6). You must affirm you have not claimed another

residence homestead exemption in Texas or another state, and all information provided

in the application is true and correct.

It is a crime to make false statements on a homestead application or file on more than

one property. You could be found guilty of a Class A misdemeanor or a state jail felony

under §37.10, Penal Code.

If you need to change your address on your TX driver’s license or TX ID card to your

homestead property address, please visit one of the Texas Department of Public Safety

(DPS) locations.

TEXAS DRIVERS LICENSE LOCATIONS

Texas Department of Public Safety, 4649 S 1

St, Abilene, TX 79605

Phone: (325) 695-0988

www.txdps.state.tx.us

Age 65 or Older Homestead Exemption

You may qualify for this exemption on the date you become age 65.

Suppose you qualify for the 65 or Older Exemption. In that case, there is a property

tax "ceiling" that automatically limits School taxes to the amount you paid in the year that

you qualified for the homestead and the 65 or Older exemption. A County, City, or Junior

College may also limit taxes for the 65 or Older exemption if they adopt a tax ceiling. Tax

ceiling amounts can increase if you add improvements to your home (i.e., adding a garage,

room, or pool).

In addition, 65 or Older homeowners who purchase or move into a different home in Texas

may also transfer the percentage of school taxes paid based on the former home’s school

tax ceiling. This is commonly referred to as a Ceiling Transfer. However, to transfer your

tax ceiling for County, City, or Junior College District taxes, you must move to another

home within the same taxing unit. You must request a certificate from the Appraisal District

for the former home and take it to the Appraisal District for the new home if located in a

different district.

You may not receive both the Age 65 or Older and Disabled Person exemption from the

same taxing unit in the same tax year; however, you may receive both exemptions from

different taxing units. Please contact the Appraisal District if you believe you qualify.

Surviving Spouse of a Person who Received the 65 or Older Exemption

A Surviving Spouse may receive an extension of the 65 or Older exemption and the tax

ceiling if qualified. To qualify, your deceased spouse must have been receiving the 65 or

Older exemption on the residence homestead or would have applied and qualified before the

spouse's death. The Surviving Spouse must have been age 55 or older on the date of the

spouse’s death. You must have ownership in the home and proof of death of your spouse.

Disabled Person Homestead Exemption

You may receive the Disabled Person exemption immediately upon qualification of the

exemption. You are eligible for this exemption if you are unable to engage in any substantial

gainful work because of a physical or mental impairment which can be expected to result in

death, or which has lasted or can be expected to last for a continuous period of not less

than 12 months, or you are 55 years old and blind and unable to engage in your previous

work because of the blindness. To automatically qualify, you must meet the Social Security

definition for disabled and receive disability benefits under the Federal-Old Age, Survivors

and Disability Insurance Program administered by the Social Security Administration. To

verify your eligibility, you must provide a current dated statement from the Social Security

Administration showing that you are disabled and the date your disability began.

Disability benefits from any other program do not automatically qualify you for this

exemption. You do not have to receive disability benefits to qualify, but you must meet the

Social Security definition for disabled. Suppose you are not receiving Social Security

benefits. In that case, you must have your physician complete the DCAD "Physician’s

Statement" form available on this site, or you may contact Customer Service at 214-631-

0910.

If you qualify for the Disability Exemption, there is a property

tax "ceiling" that automatically limits School taxes to the amount you paid in the year

you qualified for the homestead and Disability exemption. A County, City, or Junior College

may also limit taxes for the Disability Exemption if they adopt a tax ceiling. Tax ceiling

amounts can increase if you add improvements to your home (i.e., adding a garage, room,

or pool).

In addition, Disabled homeowners who purchase or move into a different home in Texas

may also transfer the percentage of school taxes paid based on the former home’s school

tax ceiling. This is commonly referred to as a Ceiling Transfer. However, to transfer your

tax ceiling for County, City, or Junior College District taxes, you must move to another

home within the same taxing unit. If located in a different district, you must request a

certificate from the appraisal district for the former home and take it to the appraisal district

for the new house.

You may not receive both the Age 65 or Older and Disabled Person exemption from the

same taxing unit in the same tax year; however, you may receive both exemptions from

different taxing units. Please contact the Appraisal District if you believe you qualify.

Surviving Spouse of a Person who Received the Disability Exemption

If qualified, a Surviving Spouse may receive an extension of the tax ceiling. To qualify, your

deceased spouse must have been receiving the Disabled Person exemption on the residence

homestead. The Surviving Spouse must have been age 55 or older on the date of the

spouse’s death. You must have ownership in the property and proof of death of your

spouse. You may contact the Customer Service department for additional information at

214-631-0910.

Residence Homestead Exemption for Disabled Veteran with 100% Disability

You qualify for this exemption if you are a disabled veteran who receives from the United

States Department of Veterans Affairs or its successor 100 percent disability compensation

due to a service-connected disability and a rating of 100 percent disability or individual

unemployability. Beginning 2009, this entitles you to an exemption of the total appraised

value of your residence homestead.

An exemption application must be completed and accompanied with a copy of your V.A.

award letter or another document from the United States Department of Veterans Affairs

showing 100 percent disability compensation due to a service-connected disability and a

rating of 100 percent disabled or individual unemployability.

A surviving spouse does qualify for the 100% Disabled Veteran Homestead Exemption, but

surviving child does not qualify.

Donated Residence Homestead of Partially Disabled Veteran or Surviving

Spouse of Disabled Veteran who qualified for Donated Residence Homestead

A disabled veteran is allowed an exemption equal to their disability rating (if less than 100

percent) on a residence homestead donated by a charitable organization. The same

percentage exemption extends to the surviving spouse if certain conditions are met.

Surviving Spouse of First Responder Killed in the Line of Duty

A surviving spouse of a first responder who is killed or fatally injured in the line of duty

which has not remarried since the first responder's death may be entitled to an exemption

from taxation of the total appraised value of the surviving spouse’s residence homestead.

Documentation must be provided.

Late Filing

When filing for the Residence Homestead exemptions, you must apply no later than two

years after the delinquency date. The Late filing includes the Age 65 or Older / Disabled

Person Exemption.

Benefits of Exemptions

All school districts in Texas grant a reduction of $25,000 from your market value for a

General Residence Homestead exemption. Some taxing units also offer additional optional

reductions for the homestead exemption. In addition, each school district will grant a

minimum reduction of $10,000 from the market value for the 65 or Older exemption. For

optional exemptions, the governing body of each taxing entity decides whether it will offer

the exemption and at what percentage or amount.

Heir Property is property owned by one or more individuals. At least one

owner claims the property as a residence homestead, and the property was

acquired by will, transfer on death deed, or intestacy. An heir property

owner not explicitly identified as the residence homestead owner on a deed

or other recorded instrument in the county where the property is located

must provide:

• An affidavit establishing ownership of an interest in the property

• A copy of the property owner’s death certificate;

• A copy of the property’s most recent utility bill; and

• A citation of any court record relating to the applicant’s property ownership, if

available.

Each heir property owner who occupied the property as a principal residence, other than the

applicant, must provide an affidavit that authorizes the submission of the application.

Other Exemptions

Disabled Veteran or Survivors of a Disabled Veteran

You qualify for this exemption if you are a veteran of the U.S. Armed Forces. Your service

branch or the Veterans Administration has officially classified you as disabled with a

percentage of 10% or more. You must be a Texas resident. Your application can apply to

anyone property you own on January 1, on which property taxes are assessed. You must

complete an application and attach a copy of a currently dated letter from the Veterans

Administration reflecting the percent of disability awarded. You must file the application by

April 30 or late file no than five years after the delinquency date. A surviving spouse or child

may also qualify to continue this exemption; if the survivor does not remarry, a surviving

spouse may continue the exemption. When the disabled veteran attains age 65, is blind in

one or both eyes, or has lost the use of one or both limbs, they will qualify for 100% of the

maximum exemption amount of $12,000 offered regardless of the disability percentage

awarded by the V.A.

A surviving spouse or child of an armed forces member killed on active duty may qualify for

this exemption. The surviving child, under age 18 and unmarried, or surviving spouse must

be a Texas resident. An application must be completed along with a letter from the Veterans

Administration showing the person died while on active duty and a copy of your marriage

license; a surviving child must attach a copy of proof of age and relationship to the

deceased.

Tax Deferral for Age 65 or Older or Disabled Homeowner

Suppose you are a homeowner or heir property owner who qualifies for the Age 65 or Older

or the Disability exemption. In that case, you may also defer or postpone paying any

property taxes on your home for as long as you own and live in it. It is important to note

that this deferral only postpones your taxes and does not cancel them. It also accrues five

(5) percent interest annually until the deferral is removed. When the property is sold, or the

ownership is transferred to the estate/heirs, the taxes and accrued interest become

payable. The Tax Deferral Affidavit form is available on this site, or you may contact

Customer Service at 214-631-0910.

Note: If you have an existing mortgage on your residence, the tax deferral does not

prevent your mortgage company from paying delinquent taxes; a tax deferral applies only

to the collection of taxes.

Charitable Exemptions

An organization that qualifies as a charitable organization is entitled to certain exemptions

from taxation. To qualify, the organization must be organized exclusively to perform

religious, charitable, scientific, literary, or educational purposes, engage exclusively in

performing one or more of many charitable functions. A charitable organization must be

operated in a way that does not result in accrual of distributable profits, realization of

private gain resulting from payment of compensation in excess of a reasonable allowance

for salary or other compensation for services rendered, or realization of any other form of

private gain, and some charitable organizations must be organized as a non-profit

corporation as defined by the Texas Non-Profit Corporation Act. See the Texas Property Tax

Code in Section 11.18 for more details (link available on this site). The application is

available on this site, or you may contact Customer Service at 214-631-0910.

Religious Exemptions

An organization that qualifies as a religious organization is entitled to certain exemptions

from taxation. To qualify, the organization must be organized and operated primarily to

engage in religious worship or promote the spiritual well-being of individuals. The

organization must be operated in such a way that no individual profits (other than salary)

and the organization's bylaws, charter, or other regulations must pledge its assets for use in

performing the organization's religious functions. See the Texas Property Tax Code in

Section 11.20 for more details (link available on this site). The application is available on

this site, or you may contact Customer Service at 214-631-0910.

Agricultural Appraisal

Land designated for agricultural use is appraised at its value based on the land's capacity to

produce agricultural products. The value of land based on its capacity to produce

agricultural products is determined by capitalizing the average net income the land would

have yielded under prudent management from production of agricultural products during

the five (5) years preceding the current year. Property owners may qualify for agricultural

appraisal under two different laws. You may refer to Subchapter C, Section 23.41 and

Subchapter D, Section 23.51 of the Texas Property Tax Code (link available on this site) for

details of these laws, or you may consult with the appraisal district. The open-space land

(1-d-1) application is available on this site, or you may contact Customer Service at 214-

631-0910.

Freeport Exemptions for Business Personal Property

Material that is transported outside of this state not later than 175 days after the date the

person who owns it on January 1 acquired it, or imported it into this state, and assembled,

manufactured, repaired, maintained, processed, or fabricated and shipped the materials out

of the state during the required time is freeport goods. An application for this exemption

must be filed with the appraisal district by April 30 each year. Copies of this application

complete with instructions and supplemental forms are available on this site or obtained

from the appraisal district.

Pollution Control Property

A person is entitled to an exemption from taxation of all or part of real and personal

property that the person owns, and that is used wholly or partly as a facility, device, or

method for the control of air, water, or land pollution if it qualifies on January 1. A person

seeking an exemption under this section shall provide to the chief appraiser an exemption

application on or before April 30 and a copy of the letter issued by the executive director of

the Texas Commission on Environmental Quality under Subsection (d) determining that the

facility, device, or method is used wholly or partly as pollution control property. A person

seeking this exemption must render the pollution control property when filing a timely

rendition.

Motor Vehicle Used for Production of Income and Personal Activities

An individual is entitled to an exemption from taxation of one motor vehicle the individual

owned on January 1. The exemption will only apply to a vehicle used in their occupation or

profession and used for personal activities that do not involve the production of income.

This exemption does not apply to a motor vehicle used to transport passengers for hire

(including a taxi, bus, or limousine). You must apply between January 1 and April 30. Attach

a copy of the current vehicle registration receipt to the application. Failure to do so will

result in the denial of the exemption. You may protest a denial of the exemption to the

Appraisal Review Board. An individual is one person or owner for this application, as in a

sole proprietor (not a partner, corporation, or cooperative). A motor vehicle means a

passenger car or light truck. A passenger car means a motor vehicle, other than a

motorcycle, golf cart, taxi, bus, or limousine, designed or used primarily for the

transportation of persons. A light truck means a commercial motor vehicle with a

manufacturer’s rated carrying capacity of one ton or less.

Appointment of Tax Consultants

A person may not perform property tax consulting services for compensation unless the

individual is a registered property tax consultant or a registered senior property tax

consultant. Consultants must complete Appointment of Agent forms listing each account the

consultant is authorized to represent. That form must be on file with the appraisal district

before actions are taken on behalf of the tax consultant's client. Check with the appraisal

district for more details on applying for this form.

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