A property tax exemption reduces the taxable portion of your property's value, directly lowering your tax bill. Various exemptions exist for homeowners, seniors, veterans, disabled individuals, and agricultural properties.
Exemptions work by subtracting a fixed amount from your assessed value before taxes are calculated. If your home is assessed at $400,000 and you have a $100,000 exemption, you only pay taxes on $300,000.
Most exemptions aren't automaticâyou must apply and meet specific eligibility requirements. Missing an exemption you qualify for means overpaying on taxes year after year.
Exemptions and appeals work together to minimize your property taxes. Exemptions reduce what portion of your value gets taxed. Appeals reduce the value itself.
Many homeowners focus on one or the other. Smart homeowners do both: claim every exemption you qualify for AND protest if your assessed value is too high.
Check your appraisal notice for exemptions currently applied. If you're missing one you qualify forâespecially the homestead exemptionâapply immediately. You may be able to claim it retroactively for up to two years.
Common exemptions in Texas:
⢠Homestead: $100,000 off for school taxes (all homeowners)
⢠Over 65: Additional $10,000+ off (varies by taxing unit)
⢠Disabled: $10,000 off, plus tax ceiling benefits
⢠Disabled Veteran: Up to 100% exemption based on disability rating
⢠Agricultural: Land taxed on productivity value, not market value
A Texas homeowner over 65 might have both homestead and senior exemptions, removing $110,000+ from their taxable value.
File an exemption application with your county appraisal district (Texas) or assessor's office (California). Most counties offer online applications. You'll need proof of eligibility such as ID, age verification, or disability documentation.
Yes. If you no longer meet eligibility requirements (sell the home, move out, etc.), you must notify the appraisal district. Keeping an exemption you don't qualify for can result in back taxes plus penalties.
Most exemptions (homestead, senior, disability) only apply to your primary residence. Agricultural exemptions apply to qualifying land regardless of residence status. Investment and rental properties typically don't qualify for major exemptions.