An easy way to lower your property-tax bill

What has four pages and can knock $15,000 off the taxable value of the home you purchase? The application for a residence homestead exemption.

That means if you buy a house that’s appraised for $200,000, you’ll be taxed on only $185,000. Pretty nice, huh?

What’s the catch?

To qualify for an exemption, your home must meet the state comptroller’s definition of residence homestead: The owner must be an individual, not a business entity, and use the home as his principal residence on Jan. 1 of the tax year.


Does Texas take my word for it?

A new law went into effect Sept. 1 that requires applicants for all homestead exemptions to provide a copy of their Texas driver’s license or state ID card and vehicle registration receipt. The documents must show the same address as the property for which the exemption is requested. Applicants who don’t have a vehicle can use a utility bill with the correct address in place of the registration receipt.

How much does it cost?

Nothing. Beware of official-looking envelopes and letters that arrive in the mail after you move into your new home offering to file your homestead exemption for a fee. There is no fee for applying for a homestead exemption – you just download the application and file it with your local appraisal district between Jan. 1 and April 30.

Once you recover from filling out the myriad documents involved with closing on a house, make sure you file for your homestead exemption. If you have more questions about property-tax exemptions, visit the Texas Comptroller of Public Accounts Web site.