Texas has some of the nation's highest property tax bills, but many may not know there's a way to bring down their payments.

Texas homeowners can apply for a homestead exemption, which can cut thousands of dollars off the taxable value of a home. That gives homeowners a break on the taxes they pay to public schools, often the biggest chunk of an owner's tax bill, and often on the taxes they pay to cities and counties, too.


Despite the savings potential, many homeowners don't claim the exemption. Homeowners may face hurdles when it comes to applying or having the right documents in order. Others simply might not know about the exemption.

That means many homeowners are missing out on considerable savings on their property tax bill, which local tax offices sent out this month.

Here's what to know about claiming a homestead exemption.

Who qualifies for a homestead exemption?

Homeowners who have at least some ownership stake in their primary residence and live in that residence as of Jan. 1 can apply for an exemption. Homeowners may not claim more than one primary residence in Texas or anywhere else in the country.

Homeowners who are undocumented effectively do not qualify for a homestead exemption. It's illegal for undocumented immigrants to obtain a Texas drivers license, which is crucial for claiming the exemption.

How much is the homestead exemption?

Texas law sets the homestead exemption school districts must provide at $140,000. So, if a home is worth $200,000, a qualifying homeowner only pays school property taxes on $60,000 of that value. Homeowners age 65 and or have a qualifying disability receive an additional $60,000 exemption on top of the $140,000 exemption they receive from school districts.

The school tax bill freezes the moment a homeowner turns 65. Older Texans get the option to pay their property taxes in installments, and may also get additional breaks from local school districts if those districts offer them.

Homeowners with a homestead exemption can also automatically start receiving exemptions from any property taxing entity, like cities an
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