How to Reduce the Property Tax in Texas

If you live in Texas and live in your home, there are ways you can reduce the property tax paid yearly on your home. Although most options benefit those aged 65 years or older, there is one way for all Texas homeowners to reduce their property tax.

Instructions

1. Start with the increased homestead exemption. The first $15,000 of the value of a home is exempt from tax. A homeowner who is disabled or age 65 years or older can receive an additional $10,000 exemption. At the time of closing, there is an application for the exemption to a homestead that is lived in and not rented out.

2. Defer property tax for homeowners. If the homeowner is 65 years or older, the taxes can be deferred and does not start collecting interest for 181 days. The homeowner will never lose her home after a tax lien is attached, since the taxes can be deferred until after the homeowner moves or dies. To defer taxes, a homeowner must file an affidavit with the district.

3. Reduce property tax to meet a percentage of the income for a taxpayer. This is specifically for persons 65 years or older. The percentage of property tax to pay is calculated using the income of the homeowner.

4. If you're not 65 or older, you can evaluate the sales price versus the actual appraisal price. Some homes are appraised higher by the state higher, but the actual appraisal is less than what the home is valued at if it would be sold. Independent appraisals accredited by the state can help lower the property tax liability.

References

• Reducing Texas Property Tax