Property Taxes: Top 5 Exemptions That Can Save You $$$

Dated: January 1 2019

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>>> Be sure and apply for your property tax exemptions as soon as you can (the first January at your new residence). There isn't a limit on exemptions, so if you qualify for all of them, save that money honey! <<<

1. Homestead

This is probably the most used property tax exemptions and is used when someone claims this property as their principal residence. Depending on where you live, you can get up to 20% off your home's appraised value, so you'll be taxed on less. Also, once you receive your homestead exemption from the appraisal district, there will be a 10% cap on the tax increase the appraisal district can raise annually on your specific property (this can be kind of tricky, because it only applies to the value of your home, not your land. So there's a loophole that your local government can take advantage of). You can apply for this exemption if you own a detached home, a townhome or a condo, as long it's your primary residence ...and if you forget to apply the first January you live at your new home, it's retro active up to 3 years. It's never too late to start saving money though, so apply as soon as you can. To apply for your homestead exemption, find your county below:

2. Seniors & Disabled

Persons age 65 or older and those identified by a physician as disabled qualify for this property tax exemption and can save an additional $10,000 off of the appraised value of your home. So, if you've qualified for a homestead exemption and a senior exemption, you can enjoy 20% and $10,000 off your home's appraised value - making a HUGE difference in your property taxes. See below for your county application:

  • DALLAS COUNTY - Seniors & Disabled Exemptions
  • COLLIN COUNTY - Senior & Disabled Exemptions
  • ROCKWALL COUNTY -Seniors & Disabled Exemptions
  • DENTON COUNTY - Seniors & Disabled Exemptions

3. Military Veterans

Provides partial exemptions to disabled vets, their spouses and children and can be up to 100% if the veteran is unemployable or was killed in the line of duty. This exemption remains in effect until, A) the surviving spouse remarries and B) this property remains the residence homestead of the surviving spouse. See below for links to these exemptions:

  • DALLAS COUNTY - Military Veteran Exemptions
  • COLLIN COUNTY - Military Veteran Exemptions
  • ROCKWALL COUNTY -Military Veteran Exemptions
  • DENTON COUNTY - Military Veteran Exemptions

4. Preservation & Historical Tax Incentives

There's a list of mostly commercial buildings in the state of Texas and if your income-producing building is on it, you could qualify for a 20% income tax credit. This applies to rehabilitating historic buildings, buildings with historical designations, and more. Click hereto check out the FAQs page for tax credit programs. 

5. Energy Incentives

When talking about energy incentives applying to property tax exemptions, for now this only applies to solar and wind-powered energy producing devices. In highly metropolitan areas like Dallas, you'll see solar panels, not wind turbines. There's not a lot right now, but it's certainly growing in popularity (with the ability to purchase or rent solar panels). For exemption guidelines, click here. For the exemption application, see below:


Is It Worth Going Through The Trouble?

For sure! The median property tax paid in the United States is about $2,000 annually (usually as a portion of your mortgage payment). A homestead exemption could protect you from county-wide increases and could have the potential to not only save you significant money annually, but dramatically decrease your monthly mortgage. Contact your local County Appraisal District for more information on how much you could save. 

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Candace Carew

Born in Florida, but I got to Texas as fast as I could! I’ve spent almost my entire life in the Dallas area and I’ve seen it change, grow and flourish. Whether you’re relocating, wanting to buy ....

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