Texas Homeowners: Don’t Risk Losing Your Homestead Exemption

If you’re a Texas homeowner, there’s a new rule you need to know about: you must now verify your homestead exemption every five years. Ignoring a verification request from your county appraisal district could mean losing your exemption and paying significantly more in property taxes. Here’s everything you need to know about this new requirement and how to protect your tax savings. 

What Is a Homestead Exemption?

In Texas, homeowners benefit from a homestead exemption, which lowers property taxes by reducing the taxable value of your home. Essentially, your taxes are calculated on a value lower than your home’s appraised or market value, offering a substantial savings. 

Until recently, the homestead exemption was a “set it and forget it” benefit. However, a 2023 state law now requires appraisal districts to verify your eligibility at least once every five years. 

Why the New Rule? 

The new law is designed to ensure that only eligible homeowners receive the tax break. It’s meant to verify that the property claiming the exemption is still your primary residence. 

What Happens If You Don’t Respond?

If you receive a verification notice from your appraisal district and fail to respond, you could lose your homestead exemption. Without the exemption, your taxes will be calculated at the full appraised or market value, which could mean thousands of dollars more in property taxes. 

Take the case of Mike Bryson, a Texas homeowner whose property tax bill skyrocketed from $6,000 to $12,000 after his exemption disappeared. Even though he reapplied, he had to pay the higher tax bill until his exemption was reinstated—a process that took several months. 

How to Check Your Homestead Exemption Status

To avoid this scenario, here’s what you can do: 

1. Visit Your County’s Appraisal District Website: Use the [Texas Comptroller’s county directory](https://comptroller.texas.gov/taxes/property-tax/county-directory/) to find your local appraisal district’s website.
2. Search for Your Property: Perform a quick property search to confirm which exemptions are valid for your home.
3. Verify Your Exemption: If you receive a verification notice, follow the instructions and respond promptly.

What If You Lose Your Homestead Exemption? 

If your exemption is dropped, don’t panic. Reapplying is a straightforward process: 

1. Complete a Two-Page Form: Most counties provide this form online. It typically requires your name, property address, and confirmation that the home is your primary residence.
2. Verify Your ID: Ensure that the address on your Texas driver’s license or state ID matches the property’s address.
3. File the Form: Submit it to your appraisal district as soon as possible.

Once your exemption is reinstated, you may be eligible for a refund of any overpaid taxes. Most appraisal districts process refunds on a monthly basis. 

What About the New Tax Savings from Proposition 4?

In November, Texas voters overwhelmingly approved Proposition 4, which increases the homestead exemption, offering the largest property tax rebate in state history. This makes verifying your exemption even more important, as losing it could mean missing out on significant savings. 

Key Takeaways for Texas Homeowners 

1. Watch Your Mail: If you receive a verification notice from your appraisal district, don’t ignore it.
2. Check Your Exemption Status: Use your county’s appraisal district website to confirm your current exemptions.
3. Reapply Promptly: If your exemption is dropped, reapply as soon as possible to avoid higher taxes.
4. Keep Your Records Updated: Ensure your driver’s license or state ID matches your property address.

Bottom Line 

The new homestead exemption verification rule is a small step that can save you thousands of dollars in property taxes. By staying on top of your exemption status and responding to appraisal district requests, you can protect your tax savings and avoid financial headaches. 

If you have questions about managing your property taxes or are looking to buy or sell a home in San Antonio, contact Kristen Smith, Realtor, for expert advice and guidance. 

Protect your tax savings—stay informed and take action today!

#TexasHomesteadExemption #SanAntonioRealEstate #PropertyTaxSavings #KristenSmithRealtor #TexasHomeowners 

Kristen Smith, Realtor San Antonio's best realtor