Tarrant County Tackles Homestead Exemption Law Confusion

A new state law requires counties to audit homestead exemptions every five years, leaving many property owners with questions.

What is a Homestead Exemption?

Texas offers homeowners a benefit known as the homestead exemption. It enables the tax rate to be computed at a rate that is less than your market or appraised value. Until recently, most didn’t have to think about it after applying.

A law passed by state legislators in 2023, however, mandates that the appraisal district in Texas counties determine if you are still qualified for that exemption at least once every five years.

Tarrant County taking a different approach

According to the Tarrant Appraisal District (TAD), some homeowners who claim the exemption are actually ineligible for it.

In order to find homeowners with questionable statuses, Tarrant appraisal officials are hiring an outside contractor instead of requiring all homestead exemption holders to reapply every five years.

Property owners in Tarrant County who receive a letter may only need to confirm that they live at the exempted property.

If two mailings are ignored, the homestead exemption may be revoked.

How to check the status of your homestead exemption

By visiting the appraisal district website for their county, homeowners may check the status of their homestead exemption. To view the list of every county appraisal district’s website, click here.

You can find out which exemptions are valid with a quick property search.

If your status is revoked, you’ll likely be required to pay taxes on the higher assessed value. However, if you are eligible, you can apply for a reimbursement of the difference by contacting the appraisal district in your county.