Photo Courtesy of Fox 4 News

DALLAS — A new Texas law that took effect in 2023 mandates that county appraisal districts verify homeowners’ homestead exemptions at least once every five years. Failure to respond to a verification notice could result in the loss of this exemption, leading to higher property taxes.

Understanding the Homestead Exemption

The homestead exemption provides Texas homeowners with significant tax relief by allowing their property taxes to be calculated based on a reduced taxable value rather than the full market appraisal.

Previously, once a homeowner qualified for the exemption, it remained in place indefinitely. However, with the enactment of the 2023 law, appraisal districts across Texas are now required to confirm homeowners’ continued eligibility at least once every five years.

“We will send out a reapplication letter in late December, giving homeowners 30 days to respond,” explained Shane Docherty, Chief Appraiser for Dallas County. “If they fail to reapply, the exemption will be removed before notices are mailed on April 15 of that year.”

Losing this exemption means homeowners will be taxed at the full appraised value, potentially leading to a significant increase in their tax bills.

A Cautionary Tale: One Homeowner’s Experience

Dallas homeowner Mike Bryson learned the hard way how costly the loss of a homestead exemption can be.

“This year, we got our tax bill, and it jumped from around $6,000 or $7,000 when we first moved in to over $12,000,” Bryson recalled. “I checked the statement and saw that the exemption was missing. After some research, I discovered it had been removed, and the county told me I had to reapply. Meanwhile, I still had to pay the full tax bill, and the reinstatement process could take three to four months.”

How to Verify Your Homestead Exemption Status

To avoid unexpected tax increases, homeowners should verify their exemption status through their county’s appraisal district website. A property search should indicate whether the exemption remains in place.

For a directory of county appraisal district websites, visit the Texas Comptroller’s official site: https://comptroller.texas.gov/taxes/property-tax/county-directory/.

Restoring a Lost Homestead Exemption

If your exemption has been removed, the process to reinstate it is relatively straightforward.

“It’s a simple, two-page document,” said Cheryl Jordan, Deputy Chief Appraiser for Dallas County. “You just check a few boxes, sign your name, and provide some basic information. Most people can complete it in about five minutes.”

To qualify, homeowners must confirm that the property is their primary residence, and the address on their state-issued driver’s license or ID must match the home’s physical address.

If you have already paid your taxes at the higher rate, there’s good news—refunds are possible.

“If a homeowner pays their taxes without the exemption but later re-applies and is approved, we notify the tax office, and they issue a refund,” Docherty explained. “This process happens on a monthly basis.”

Don’t Ignore Appraisal District Notices

To avoid losing valuable tax savings, homeowners should pay close attention to any mail from their county’s appraisal district. If you receive a notice, follow the instructions or contact the appraisal office directly. Taking proactive steps can prevent unnecessary tax increases and ensure you continue to benefit from the homestead exemption.