Texas homeowners can reduce their property taxes through exemptions and annual protests. In many cases, combining qualifying Texas homestead exemptions with a property tax protest filed through your Texas appraisal district can lower what you owe the county.
Texas is ranked eleventh in the nation for the highest median property tax bills. The state relies heavily on property taxes because it has no sales tax, giving local governments more say over how funds are spent. If you own a home or property, you must know how to reduce property taxes in Texas to keep more money in your pocket.
Key Takeaways
Texas homeowners usually lower their tax bill in two ways: exemptions and annual protests.
The general homestead exemption reduces your home's taxable value for school district taxes by $140,000.
Homeowners who are 65 or older, disabled, or disabled veterans may qualify for additional exemptions.
Agricultural and wildlife management land may qualify for productivity-based valuation instead of market value.
To protest your assessment, file Form 50-132 by May 15 or 30 days after the county mails your appraisal notice, whichever is later.
If you missed the homestead exemption, you can apply retroactively for up to two prior tax years.
Understand the Types of Property Tax Exemptions Available
To help offset the burden on taxpayers, Texas offers several property tax exemptions. These are some of the simplest ways to reduce your property taxes. There's the general state-wide homestead exemption and several additional ones you may qualify for.
Exemption Type | Who Qualifies | Approximate Savings | Application Form |
|---|---|---|---|
General Homestead | Primary residence owners | Reduces the school district's taxable value by $140,000 | Form 50-114 |
Over-65 | Homeowners 65+ | An additional $60,000 school district exemption, plus a tax ceiling | Form 50-114 |
Disabled Individual | Meets SSA disability definition | Additional $60,000 school district exemption | Form 50-114 |
Disabled Veteran | Veterans with a rated disability | $5,000 to full exemption, depending on rating | Form 50-135 |
Agricultural | Land used for agriculture for 5 of the last 7 years | Productivity-based valuation instead of market value | Form 50-129 |
Wildlife Management | Qualifying conservation land transitioning from agricultural use | Productivity-based valuation | Form 50-129 + wildlife plan |
Homestead Exemptions for Primary Residences
If you use your property as your primary residence, you may qualify for a $140,000 reduction in your home's taxable value for school district taxes through the general homestead exemption.
Agricultural Exemptions for Farmland
If your land is used for agricultural purposes and has been for at least five of the previous seven years, you may qualify for a special appraisal.
This is not a traditional exemption. Instead, qualifying land is taxed based on its productivity value rather than its market value. Apply with Form 50-129 and submit it to your county appraisal district.
Wildlife Exemptions for Conservation Lands
There is also a wildlife management appraisal if your property is used to help native Texas wildlife and its natural habitats survive.
This special appraisal typically continues agricultural valuation after the land shifts to qualifying wildlife management use. You must have a wildlife management plan approved by Texas Parks and Wildlife or a certified wildlife biologist, and you generally apply through Form 50-129 with your county appraisal district.
Determine Eligibility for Exemptions
A general homestead exemption lowers the assessed value of your home to reduce your tax liability, but there are criteria you must meet to qualify.
Criteria for Homestead Exemptions
You must use the property as your principal residence.
You must own the property.
You can only claim the homestead exemption on one property.
You must own the property before January 1 of the year you're applying for.
Additional Benefits for Seniors and Disabled Individuals
In addition to the basic homestead exemption, seniors and disabled individuals are eligible for other exemptions.
Seniors 65+: Anyone over 65 is eligible for an additional $60,000 school district exemption. Some taxing units also offer a local option exemption, and school district taxes are subject to a tax ceiling once you qualify.
Disabled Individuals: If a disabled person meets the definition of disabled under the Social Security Administration's Federal Old-Age, Survivors and Disability Insurance Act, they also qualify for an additional $60,000 school district exemption. Unfortunately, you can't qualify for the exemption for both senior and disabled individuals. You can only have one at a time.
Disabled Veterans: There is an additional exemption for disabled veterans. Depending on your disability rating, the exemption can range from $5,000 to a full exemption for certain 100% disabled veterans.
Disability Rating | Exemption Amount |
|---|---|
10%–29% | $5,000 off assessed value |
30%–49% | $7,500 off assessed value |
50%–69% | $10,000 off assessed value |
70%–99% | $12,000 off assessed value |
100% (total disability) | Full exemption; $0 property taxes |
Application Process for Property Tax Exemptions
All of the exemptions mentioned above are one-time applications. However, in 2023, a new state law (Texas Property Tax Code Section 11.43(h-1)) requires counties to verify homestead exemptions once every five years.
For the general homestead exemption, file Form 50-114 with your county appraisal district.
Some exemptions not mentioned, such as property tax abatement, historical and archeological sites, and low-income housing, require that you file an application every year.
How to Apply for Homestead Exemptions
You must apply for the Texas homestead exemption through your county. To do so, fill out Form 50-114. You only need to apply once.
Deadlines for Exemption Applications
The deadline for exemptions is April 30 in the year the exemption is requested, although there are cases where you can retroactively file for up to two years missed.
Retroactive Claims for Missed Deadlines
Have you missed the homestead exemption but are still looking for ways to reduce property taxes in Texas? The good news is that you can retroactively apply for the exemption for up to two previous years. At Ownwell, we help you handle this process.
Unsure Which Exemptions You Qualify For?
How to File a Property Tax Protest in Texas
To protest your property taxes in Texas, complete the Notice of Protest Form and submit it to your county appraisal district by the deadline. After you file, you can present evidence in an informal meeting before your County Appraisal District (CAD). If you can’t reach an agreement with the CAD, you can take your protest to the Appraisal Review Board (ARB) for a formal hearing.Â
Texas tax code requires appraisal districts to reappraise all property in their jurisdictions at least once every three years. However, the vast majority do so annually. These large appraisals don't always take into account your property's unique features, which can affect the assessed value and lead to a higher tax bill.
When you receive your property's appraised value and tax statement in April or May, and you disagree with the amount, there's a process to protest it.
Receive your Notice of Appraised Value, typically in April or May.
Review the assessed value and compare it with the market value.
Complete Form 50-132, the Notice of Protest.
Submit your protest by May 15, or within 30 days of receiving your notice, whichever is later.
Gather evidence, such as comparable sales, an appraisal, or damage documentation.
Attend an informal hearing with the appraisal district if one is offered.
If the dispute is not resolved, present your case at a formal ARB hearing.
Requirements for Filing a Protest
To file a protest, complete the Notice of Protest Form (Form 50-132) and send it by certified mail with a receipt. This form includes the following information:
Address, contact information, and property description
Appraisal district's account number
Property value based on your opinion
Reasons you're protesting
Preferred method of notice (certified mail, mail, or email)
Preferred type of hearing (written affidavit, telephone, or in-person)
Signature
Timeline for Submitting a Protest
The Texas property tax protest deadline is May 15, or 30 days after your county mails your appraisal notice, whichever is later.
Note that the time period starts immediately after the letter is mailed, not when you receive it. You can file a late property tax protest if you are traveling for work or serving in the military.
Your Neighbors Might Be Paying Less...
How to Prepare for a Texas Property Tax Protest Hearing
Two weeks before your hearing, you'll receive the notice of the hearing date and time, a copy of the Comptroller pamphlet, a copy of the Appraisal Review Board (ARB) procedures, and notification that you have access to any information the district plans to use at your hearing.
Informal Hearings vs. Formal Hearings
An informal hearing can be done between you and your CAD. When you present your evidence, you may settle with them without a formal hearing.
A formal hearing is held before the ARB, and each party must produce evidence to prove its point. The ARB often consists of local citizens who issue a decision after the meeting. If you still don't agree, you have the option to challenge the matter in district court or through binding arbitration.
Gathering Evidence to Support Your Case
Come to your hearing prepared to increase your chances of success. The district will provide you with any information they used to appraise your property. You can counter the amount with any of the following:
A professional appraisal from a qualified real estate appraiser
Comparable sales data of homes similar to yours in your area
Signs of deterioration or property damage to your property that may reduce its value
Documentation of the sales price if you bought it within the previous three years
Photographs, insurance records, sworn witnesses, official notices of the property, or assessment comparables
The appraisal district's evidence packet, which you are legally entitled to request under Texas Property Tax Code Section 41.461
Expert Tip from Sam Sosa, our Head of Property Taxes at Ownwell:
To increase your chances of a successful property tax protest in Texas, I'd strongly encourage securing a copy of the appraisal district's evidence packet. Not only are you legally entitled to it under section 41.461 of the Texas Property Tax Code, but any data the county used to determine the value of your property will be in there. It's safe to say that not all increases in value are created equal.Â
While some increases are warranted, we see repeatedly that many cases do not fulfill the "clear and convincing" standard the appraisal district is required to meet.
What to Expect During the Hearing
At the hearing, the panel chairman will introduce the identifying information and protest number. They will verify that the committee kept the information confidential. Any written or electronic material is presented to the chairman, who then swears in witnesses.
As a property owner, you will then present the evidence of your property's value. You can examine witnesses if necessary and state your opinion about the value. The district then cross-examines any witnesses and may question you, present their own evidence, and introduce their own witnesses.
You can then cross-examine any witnesses the district added, and both parties then make closing arguments. Once the hearing is closed, the panel deliberates. You receive the outcome through certified mail.
What to Do If Your Texas Property Tax Protest Is Denied
If your protest is unsuccessful, and you and your county appraisal district can't agree upon an assessed value, you can continue the case through the State Office of Administrative Hearings or binding arbitration, depending on your property and the type of appeal you file. SOAH is an administrative appeal process, while binding arbitration uses a neutral arbitrator appointed through the Texas Comptroller.
Process for Appealing the Decision
To appeal to the SOAH and appeal before an ARB, file the Notice of Appeal by Property Owner form within 30 days of receiving the information from the board.
If you pursue binding arbitration instead, fill out the Comptroller's form for your district and pay the required deposit. The deposit amount varies by property type and value, so confirm the current amount with the Texas Comptroller before filing.
If your property is appraised at $5 million or less, you may qualify for binding arbitration. If the property is over $5 million, it generally must be homesteaded for arbitration.
Tips for a Successful Appeal
Read through Tax Code Chapter 41A, learn about property tax bills in Texas, and understand the Comptroller Rules before arbitration. Prepare with strong evidence that you can explain simply. Gather as much information as you can, and read through it thoroughly. Look for comparable sales that most closely match your property.
Get the Highest Reduction With Ownwell
At Ownwell, we understand Texas property taxes and know how to reduce them. From calculating how much you're overpaying or exemptions you qualify for, we use proprietary software combined with input from local property tax experts to maximize your reduction and savings.
Get started on the path to lower taxes today.
Frequently Asked Questions
How much can I save with a Texas homestead exemption?
The general homestead exemption reduces your home's assessed value for school district taxes by $140,000. Additional exemptions for seniors, disabled individuals, and disabled veterans can further increase total savings. The exact dollar savings depend on your local tax rate.
What is the deadline to protest property taxes in Texas?
The Texas property tax protest deadline is May 15, or 30 days after your county mails your Notice of Appraised Value, whichever date is later. Missing this deadline generally means you cannot protest for that tax year, though limited exceptions exist for military service members and those traveling for work.
Can I protest my property taxes every year in Texas?
Yes. Texas property owners have the right to protest their appraised value every year. Annual protests are common and often effective, particularly when market values are declining or the appraisal district's assessment does not reflect your property's actual condition.
What evidence do I need to protest property taxes in Texas?
The most effective evidence includes comparable sales data for similar properties in your area, a professional appraisal, documentation of property damage or deterioration, and the appraisal district's own evidence packet, which you are legally entitled to request under Texas Property Tax Code Section 41.461.
Who qualifies for the over-65 property tax exemption in Texas?
Texas homeowners who are 65 or older and use the property as their primary residence qualify for an additional school-district tax exemption in addition to the general homestead exemption.Â
They also receive a tax ceiling that prevents school district taxes from increasing beyond the amount paid in the year they qualified, subject to adjustments for improvements and certain local rules.
What is the difference between a property tax exemption and a property tax protest in Texas?
A property tax exemption reduces the taxable value of your property based on qualifying characteristics, such as primary residence, age, or disability. A property tax protest challenges the appraisal district's assessed market value of your property. Both strategies can reduce your tax bill and can be used at the same time.
How long does a Texas property tax protest take?
Most informal hearings are resolved within a few weeks of filing. Formal ARB hearings typically occur within 30-90 days of filing the protest. However, this is very county dependent, and some can go into December. If you proceed to binding arbitration or district court, the process can take several months to over a year.
Do I need a lawyer or professional to protest my property taxes in Texas?
No, Texas property owners can protest their taxes without professional representation. However, using a property tax protest company or consultant can improve outcomes, particularly for complex properties or cases where the appraisal district's evidence is difficult to counter without expertise.
