Now’s the time to be thinking about applying for homestead exemptions, but Texas homeowners might not be aware of other exemptions that could benefit them in the future.

The state comptroller’s office has just published a new booklet solely focused on property-tax rights and exemptions. Titled “Texas Property Taxes: Taxpayers’ Rights, Remedies, and Responsibilities,” it’s available from the Texas comptroller’s office.

The pamphlet explains how the property-tax system in Texas works and what different types of property taxes homeowners can expect to pay. So who levies property taxes on your home? Taxing units include counties, cities, school districts and special districts such as municipal utility, junior college, and hospital districts.

Homestead exemption reduces your taxes
Most homeowners are likely aware of the most common Texas exemption – the homestead exemption, which is always free to apply for and provides a nice tax advantage for homeowners, specifically when it comes to school taxes. The homestead refers to your house and the land that’s used for your primary residence. If you lived in your house as of January 1 this year, you’re eligible for the exemption.

Here’s how it works and why it’s advantageous: A homestead exemption allows you to pay taxes for schools on only a portion of the total value of your home. So, if your home is valued at $50,000 and you qualify for a $15,000 exemption, the taxes you’d pay on your home would only be on $35,000. That’s a significant chunk when it comes to a homeowner’s overall tax liability.

One caveat: You may get official-looking letters in the mail that offer to file your homestead exemption for a “required fee” of $30 or so. Throw them in the trash! Applying for a homestead is – and always has been – free of charge. Your best bet is to download the official form from the comptroller’s office Web site.

Elderly and disabled exemptions
Besides the general homestead exemption, certain homeowners may qualify for additional exemptions. For example, there’s an exemption for those who are disabled or over the age of 65, specifically when it comes to public school taxes.

The exemption establishes a limit to the school taxes elderly or disabled homeowners have to pay. It also allows those who qualify for this exemption to apply anytime during the year – without waiting until the following January 1. Essentially, the school taxes that elderly or disabled homeowners pay can’t increase above the total school tax amount on that home in the first year that the homeowner qualifies for the age-65-and-older or disabled-homeowner exemption.

For those who are disabled and cannot work – and if you receive disability benefits through federal (not state) disability programs, you can also qualify for this exemption. If you qualify, you’ll get an additional $10,000 exemption for school taxes (besides the $15,000 homestead exemption for all homeowners).

In particular, if you’re a disabled veteran, you could qualify for an exemption if you were disabled while serving with the U.S. armed forces, or you are the surviving spouse or child (under 18 years of age and unmarried) of a disabled veteran or a member of the armed forces who was killed while on active duty. This special exemption ranges from $5,000 to $12,000, depending on the extent of the disability.

Other exemptions save more money
Homeowners may also qualify for still more exemptions for special circumstances and situations. For example, there are exemptions for county taxes for all homeowners.

Also, if the county you live in collects a special tax for farm-to-market roads or flood control, you may qualify for an additional $3,000 exemption.

There are also optional exemptions, where any taxing unit can offer an additional exemption that can’t be less than $5,000.

Each taxing unit has to decide whether to offer homeowners an extra exemption by July 1 of the tax year.

Solving property-tax issues
What if the appraisal district estimates the value of your home too high?

The state’s new property-tax brochure tells homeowners exactly how to protest to your local tax appraisal review board – made up of local citizens who hear taxpayer protests to ensure property values are fair and uniform in a particular area. (The Texas Association of REALTORS® supported legislation during the 79th Legislature giving Texas homeowners a new avenue, binding arbitration, for protesting property values when they disagree with the appraisal review board’s decision.)

Keep in mind, though, that your property taxes could increase if you add on to your home or otherwise make improvements to your property.

Bottom line? Find out which exemptions you qualify for and take advantage of them! If you’re a homeowner in Texas, you have some great options to reduce your tax bill.