07/11/2025
Dear Friends, family and Clients,
I’ve been getting a lot of questions about recent changes to the homestead exemption in Texas. Here is some important information:
Increase to the Homestead Cap
The 89th Texas Legislature passed a proposal (SB 4) to raise the school tax homestead exemption from $100,000 to $140,000, and for seniors and disabled homeowners from $110,000 to $200,000. It’s not in effect yet. This still has to go to voters in November 2025 for approval via constitutional amendment. If it passes, the new exemption applies starting January 1, 2025. That may sound like “the past” but remember assessments are paid in arrears so the next tax period is the 2025 tax period. Please see link for more information. https://www.texaspolicyresearch.com/bills/89th-legislature-sb-4/
5-Year Reaffirm Requirement
This one is already in effect as of September 1, 2023. Under new rules (SB 1801), homeowners must now reaffirm their homestead exemption every five years. Appraisal districts have started sending out reaffirm letters. You may have read or heard “If the property owner doesn’t respond to the notice, they could lose the exemption” which could spike their taxes and impact their escrow payments.
The chief appraiser of an appraisal district shall develop a program for the periodic review of each residence homestead exemption to confirm that the recipient of the exemption still qualifies for the exemption. The program must require the chief appraiser to review each residence homestead exemption at least once every five tax years. The program must provide that the first five-year review cycle begins January 1, 2024. Please see link for more information.https://capitol.texas.gov/tlodocs/88R/billtext/pdf/SB01801F.pdf
The five-year cycle begun on January 1st 2024. Homeowners will receive a notice at some point during the first five years. It is up to each Chief Appraiser for each of our 254 appraisal districts in Texas to demine when the notice will be mailed. We have been told to watch our mail carefully. In certain CAD’s there is an option to receive communications electronically. It would mean they would not receive a statement via mail only email going forward. According to WCAD, if a homeowner misses the notice and their homestead exemption is lifted, they can call back in and it will be “reinstated” as if it had never been lifted in the first place as long as the property owner did in fact still qualify for the exemption.
It is a bit of a “lottery” on when the notice goes out. They don not send them by area, at a specific time, and they go out in batches. They do not list on their website anything about a notice going out so the property owner would have no idea it was mailed, or if it is time to reaffirm their exemption other than by checking the exemption status and checking their mail or email based on their delivery preferences they established with the CAD.
