Is Your Homestead Exemption Still Active? How to Check Your Status Before It’s Too Late

Here’s what you need to know about your homestead exemption status:

• If your homestead exemption is inactive, your property tax bill could increase by hundreds or even thousands each year.
• Your status could be inactive due to paperwork issues, purchase of a new property, deed or title changes, or a loss of eligibility.
• We recommend proactively checking your exemption status by searching the property record on your local CAD’s website.
• If necessary, reapply immediately by submitting the exemption form to your CAD with the required supporting documentation.

The Importance of an Active Homestead Exemption

Homestead exemptions can become inactive for several reasons, which would leave you vulnerable to property tax bill increases. It exempts $140,000 of your property’s assessed value from school district taxes, as well as other local taxes, depending on your County Appraisal District (CAD). 

If even one year passes without an active exemption, you could see hundreds or even thousands of dollars more on your next bill. As more time passes, that number can keep going up without the additional protection of the homestead cap.

Why Your Homestead Exemption May Be Inactive

A homestead exemption may be removed for any of the following reasons:

• Errors by the county in records or paperwork
• Moving to a new home without updating your address
• Failure to verify exemption eligibility when requested
• Undelivered Appraisal Notices or other county communications
• Any ownership changes to the deed or title updates

Remember that you must be a Texas resident, own the home, and use it as your primary residence as of January 1st. If any of those things have changed, that could also be why your exemption is no longer active. In that case, you would not be eligible to reapply and receive benefits for that property.

How to Check Your Homestead Exemption Status

A new Texas law requires CADs to verify homeowners’ exemption eligibility every five years. You may receive an audit letter at any time in this 5-year period asking for proof that you still qualify. Once processed, the CAD will notify you if you are deemed no longer eligible, which you have the right to appeal. Otherwise, your homestead exemption status should remain active and appear on your next tax bill.

However, it’s best not to wait until you receive the audit letter or notice the exemption missing on your property tax bill. Proactively find your property record on your local CAD’s website by searching the address or account number. There should be an area that lists any active exemptions. If you don’t see this, or if it says expired or inactive, then you may need to reapply for benefits.

How to Reapply

If you need to reapply, download the Application for Residential Homestead Exemption (Form 50-114) from the Texas Comptroller website. Complete the form and attach a copy of your state-issued driver’s license or ID card that matches the property’s address. Submit the form to your CAD by certified mail or their online portal, if allowed.

Be aware that deadlines and submission instructions can vary by county. Check the deadline on your audit letter or your county’s website. It is also possible to apply late, up to two years, in some cases, and have the exemption applied retroactively.

Is your homestead exemption status incorrectly marked as inactive? Gill, Denson & Company can help you protest your property tax appraisal, gathering the necessary evidence to support your exemption eligibility.