MCAD Encourages Homeowners to Take Advantage of Homestead Exemptions
Montgomery County TX —The Montgomery Central Appraisal District is
encouraging homeowners to make sure they receive the homestead exemptions
they are entitled to.
“One of the simplest ways a homeowner can lower their property tax bill is to file a
homestead exemption and apply for any other exemption they might be eligible
for,” said Janet Jennings-Doyle, chief appraiser.
A homestead is generally the house and land used as the owner’s principal
residence on Jan. 1 of the tax year. Recent legislation allows a homeowner to apply
for a residence homestead exemption the year they own and occupy the house as
their principal residence. Property owner are advised that they must file an
application to start the exemption process. Applications should be submitted to the
appropriate local appraisal district.
If they acquire property after Jan. 1, they are eligible to receive the exemption for
the applicable portion of that tax year immediately on qualification if the previous
owner did not receive the same exemption for the tax year.
“Due to this, the district has seen a significant increase in the number of
applications received in 2022 compared to the 2021 tax year. However, we want
our property owners to take full advantage of every opportunity available to help
lower their taxes. We are looking forward to leveraging technology to improve
efficiency in timely processing in 2023,” Jennings-Doyle said.
Available homestead exemptions include:
School taxes: All homeowners may receive a $40,000 homestead exemption for
school taxes currently (recent passed amendment).
County taxes: If a county collects a special tax for farm-to-market roads or flood
control, a homeowner may receive a $3,000 homestead exemption for this tax.
Age and disability exemptions: Individuals 65 years of age or older or disabled as
defined by law may qualify for a $10,000 homestead exemption for school taxes.
This is, in addition to the $40,000 school tax exemption. Also, any taxing unit may
offer a local optional exemption of at least $3,000 for taxpayers age 65 or older
and/or disabled. Older or disabled homeowners do not need to own their homes on
Jan. 1 to qualify for the $10,000 homestead exemption. They qualify as soon as
they turn age 65 or become disabled.
Local Option Exemption: Taxing units may offer an exemption based on a
percentage of a home’s appraised value. Any taxing unit can exempt up to 20
percent of the value of each qualified homestead. No matter what percentage of
value the taxing unit adopts, the dollar value of the exemption must be at least
$5,000.
Partial exemption for disabled veterans: Texas law provides partial exemptions
for any property owned by veterans who are disabled, surviving spouses, and
surviving children of deceased disabled veterans. This includes homesteads
donated to disabled veterans by charitable organizations at no cost or not more than
50 percent of the good faith estimate of the homestead’s market value to the
disabled veterans and their surviving spouses. The exemption amount is
determined according to the percentage of service-connected disability.
100 Percent Residence Homestead Exemption for Disabled Veterans: A
disabled veteran who receives 100 percent disability compensation due to a
service-connected disability and a rating of 100 percent disabled or of individual
unemployability from the United States Department of Veterans Affairs is entitled
to an exemption from taxation of the total appraised value of the veteran’s
residence homestead. Surviving spouses of veterans who qualified for this
exemption or who would have qualified for this exemption if it had been in effect
at the time of the veteran’s death are also eligible with certain restrictions. The
residence homestead application must be filed if this exemption is claimed.
Surviving Spouses of Members of the U.S. Armed Services Killed in the Line
of Duty: The surviving spouse of a member of the U.S. armed services who is
killed or fatally injured in the line of duty is allowed a 100 percent property tax
exemption on his or her residence homestead if the surviving spouse has not
remarried since the death of the armed services member.
Surviving Spouses of First Responders Killed in the Line of Duty: The eligible
surviving spouse of a first responder killed in the line of duty is allowed a 100
percent property tax exemption on his or her residence homestead if the surviving
spouse has not remarried since the death of the first responder.
To be eligible for a homestead exemption, a property owner must own and occupy
a property. Unless there is a change to a property’s deed, property owners do not
need to reapply for their exemptions once they have been granted.
For more details on homestead exemptions, contact the Montgomery Central
Appraisal District at 936.756.3354 or by email to exemptions@mcad-tx.org.
Property owners may obtain an application online at www.mcad-tx.org under
“Forms.”
About MCAD The Montgomery Central Appraisal District is a political
subdivision of the State of Texas established in 1980 for the purpose of discovering
and appraising property for ad valorem tax purposes for each taxing unit within the
boundaries of the district. For further information, visit www.mcad-tx.org.
