One of the easiest ways a homeowner can lower his or her property tax bill is to file a
homestead exemption. A homestead is generally the house and land used as the
owner’s principal residence on Jan. 1 of the tax year.

Homestead exemptions reduce the appraised value of your home and, as a result, lower
your property taxes. To apply for an exemption on your residence homestead, contact
the Shelby County Appraisal District.

Available homestead exemptions include:

School taxes: All homeowners may receive a $25,000 homestead exemption for
school taxes.

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 or older or disabled as defined
by law may qualify for a $10,000 homestead exemption for school taxes, in
addition to the $25,000 exemption available to all homeowners. 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.

Taxing units may offer a local option 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 Action:
The surviving spouse of a member of the U.S. armed services who is killed in
action is allowed a total (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
total (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.
For more details on homestead exemptions, contact the Shelby County Appraisal
District at (936) 598-6171, online at www.shelbycad.com. The homestead exemption
application is available online at comptroller.texas.gov/forms/50-114.pdf.