Texas Homeowners: Important Changes to the Homestead Exemption Rule

Key Takeaways

• Texas homeowners may now need to renew their homestead exemption every five years under a new state law.
• If you receive a renewal request from your appraisal district, you must respond to keep your property tax savings.
• Ignoring a renewal notice could result in losing your homestead exemption and paying significantly higher property taxes.
  

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Owning a home in Texas comes with many benefits, and one of the most valuable is the homestead exemption, which helps homeowners save money on property taxes. However, recent changes to Texas law mean that some homeowners may need to renew their exemption every five years to keep receiving this benefit.

This new requirement is part of Senate Bill 1801, which went into effect on January 1, 2024. Here’s what you need to know to make sure you don’t miss out on valuable tax savings.

What Changed?

Previously, Texas homeowners only had to apply for a homestead exemption once, and it remained in place as long as they lived in the home. Under the new law, appraisal districts are now required to periodically review all homestead exemptions to verify that homeowners still qualify.

This means that at least once every five years, appraisal districts may send a letter asking homeowners to reconfirm their eligibility. If you receive this letter, you will be required to submit a new application to continue receiving the exemption.

What Happens If You Ignore the Letter?

If you fail to respond to a renewal request, you could lose your homestead exemption, leading to a significant increase in your property taxes.

The bottom line:

• Not all homeowners will be affected, but if you receive a notice, DO NOT ignore it.
• You may be required to reapply to keep your homestead exemption.
• Losing your exemption could mean paying hundreds or even thousands of dollars more in property taxes.

How to Stay Protected

To ensure you don’t miss out on tax savings, follow these steps:

• Stay alert – Watch for any mail from your county’s appraisal district regarding your homestead exemption.
• Act quickly – If you receive a renewal request, follow the instructions and submit the necessary paperwork by the deadline.
• Check your status – A quick property search should reveal which exemptions are valid. If you're unsure whether your homestead exemption is active, check your status online or contact your local appraisal district. Click here for a list of county appraisal district websites. Select your county, visit the appraisal district's website, and perform a property search to see which exemptions apply. 

Final Thoughts

Texas homeowners have long benefited from the homestead exemption, and this new law ensures that only those who still qualify continue to receive it. While this update may require some extra steps, staying informed and responding promptly can help you protect your tax savings and avoid unnecessary costs.

For more details, visit your county’s appraisal district website or consult a tax professional for guidance.