13 Mar 8 Texas Homestead Property Tax Exemptions
Since Texas has no state income tax (not to mention any inheritance tax), property taxes have been historically higher here than in most states. The previous Texas legislative session addressed this by increasing the homestead exemption for school district taxes from $40,000 to $100,000 (as of year 2025).
This may be increasing to $140,000 (it has already been passed by the Texas Senate). Homeowners would then have a reduction of the value of their homestead being taxed with the possibility of reduced property taxes. An adult who is disabled or 65 or older is entitled to an additional exemption of $10,000 of the appraised value. Additionally, the property tax rate increase was previously limited to 3.5% without public consent. Notwithstanding the same, local governments can still raise rates for infrastructure, public services and fee through additional taxes. Property values have increased over 145% in Dallas in the last 10 years (3rd highest of larger cities in the U.S.). Wages have not kept pace.
The following are some of the homestead property tax exemptions (in addition to the school district exemptions) although you can’t have 2 or more of the exemptions.
#1 Adult over 65 years of age;
#2 Disabled (or determined by federal law) individual;
#3 Surviving spouse of a disabled individual if the surviving spouse is at least 55 years of age;
#4 Surviving spouse if the deceased was receiving or entitled to the homestead exemption in the year of death and the surviving spouse is at least 55 years of age and it remains the resident homestead;
#5 Military member who is rated 100% disabled as a result of military service (service-connected disability) is entitled to total exemption;
#6 Surviving spouse of a disabled veteran (if the disabled veteran qualified for the exemption at the time of the veterans death) if the surviving spouse has not remarried and it was the resident homestead of the surviving spouse and remains the residence homestead of the surviving spouse. If the surviving spouse moves into another home, he or she is entitled to an exemption of an equivalent dollar amount of the former residence (if he or she hasn’t remarried);
#7 Surviving spouse of a member of the US Armed Forces who is killed or fatally injured in the line of duty is entitled to an exemption from taxation of the full amount of the total appraised value if the surviving spouse has not remarried. If the surviving spouse moved into another homestead, then he or she will be entitled to an equivalent dollar amount of exemption if he or she hasn’t remarried;
#8 The surviving spouse of a first responder (i.e. fireman, police officer, paramedic, jailer, etc.) who is killed or fatally injured in the line of duty is entitled to full exemption provided he or she hasn’t remarried. If the surviving spouse moves into another homestead, then an equivalent dollar amount of exemption if he or she hasn’t remarried.
It should also be noted that property tax statements are often to confirm a homestead exemption for public benefits such as Medicaid.
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