How to Remove Homestead Exemption in Texas
Learn the process of removing a homestead exemption in Texas, including required forms, documentation, and filing steps to update property tax records.
Owning a home in Texas comes with the benefit of a homestead exemption, which reduces property taxes for eligible homeowners. However, removing this exemption may be necessary when selling the property, converting it into a rental, or no longer using it as a primary residence.
Removing a homestead exemption requires notifying the county appraisal office and completing specific forms. Understanding the process ensures compliance with state regulations and prevents potential tax penalties.
County Appraisal Office Requirements
Each Texas county has an appraisal district responsible for managing property tax exemptions. To remove an exemption, homeowners must notify the appropriate county appraisal office, which oversees property tax assessments and exemption eligibility. While procedures vary slightly by county, all follow state guidelines outlined in the Texas Tax Code.
Texas Property Tax Code 11.43(g) requires homeowners to inform the appraisal district when their property no longer qualifies for a homestead exemption. Failure to do so can result in back taxes, interest, and penalties. Some counties conduct audits to verify eligibility, and if an ineligible exemption is found, the homeowner may owe unpaid taxes for up to five years, plus a 10% penalty and 5% annual interest.
Each appraisal district sets deadlines for exemption changes, typically aligning with the property tax cycle. Homeowners should notify the county by April 30 to ensure the exemption is removed before tax bills are issued in the fall. Some counties allow mid-year adjustments, but delays can lead to prorated tax adjustments or additional fees.
Forms for Removal
Homeowners must submit a Request to Remove Homestead Exemption form to the county appraisal district. This form requires details such as the property’s legal description, account number, and reason for removal. Some counties provide it online, while others require in-person submission.
Additional documentation may be required. If the property was sold, a copy of the closing statement or recorded deed may be necessary. If the home is being converted into a rental, some counties may request a lease agreement or proof of tenant occupancy.
Many appraisal districts offer online submission portals, allowing homeowners to upload documents and track their requests. Some counties still require notarized signatures, meaning homeowners may need to visit a notary before submission. Processing times vary, but most districts complete the removal within a few weeks and send confirmation by mail or email.
Documentation Needed
Submitting the correct documentation ensures the request is processed efficiently and complies with state tax laws.
Property Details
The appraisal district requires the property’s legal description, which can be found on the deed or property tax statement, along with the appraisal district account number. A copy of the most recent property tax bill may also be needed.
If the property has been sold, a copy of the recorded deed or closing disclosure is often required. The deed must be recorded with the county clerk’s office. If the property is being rented, some counties may request a lease agreement or a notarized affidavit stating the change in use.
Identification Documents
Homeowners must provide proof of identity, typically a government-issued photo ID such as a Texas driver’s license or state identification card. The address on the ID must match the homestead property address.
If the homeowner has moved out of state or changed their primary residence, additional documentation may be required, such as a utility bill, voter registration card, or vehicle registration showing the new address. If the exemption is being removed due to the homeowner’s death, the county may require a death certificate and legal documents proving the authority of the executor or heir handling the estate.
Mortgage Information
If the property has an outstanding mortgage, some counties may request documentation from the lender to confirm changes in ownership or occupancy. A mortgage statement showing the current loan status can help verify whether the homeowner still resides at the property. If the mortgage has been paid off, a release of lien document from the lender may be required.
For homeowners who have refinanced, the appraisal district may ask for a copy of the new loan agreement or closing disclosure. Refinancing does not automatically remove a homestead exemption, but if the property is no longer the primary residence, the exemption must be updated. Some lenders require notification if the home is being rented, as certain mortgage agreements contain restrictions on rental use.
Filing Procedures
Submitting the exemption removal request requires attention to deadlines set by each county’s appraisal district. Most districts require requests to be filed before tax bills are generated in the fall. Filing early in the tax year helps avoid unexpected tax liabilities.
Many counties offer online portals where homeowners can securely upload their removal request, track the status, and receive electronic confirmation. If an online option is not available, homeowners may need to mail their documents or visit the appraisal office in person. When mailing, using certified mail with a return receipt is advisable to provide proof of submission.
After submission, the appraisal district reviews the request. If any information is missing, they may send a notice requesting additional documentation, which can delay processing. Some counties require in-person verification or notarized signatures, particularly when ownership changes are involved.
Confirmation and Record Updates
Once the exemption removal request is processed, the county appraisal district updates its records. Processing times vary, but most districts complete the update within a few weeks. Homeowners should monitor their mail or online account for confirmation.
If confirmation is not received within a reasonable timeframe, homeowners should follow up with the appraisal district. Any discrepancies, such as the exemption still appearing on the tax bill, should be addressed immediately to avoid penalties. Some counties allow homeowners to request a revised tax estimate after the exemption is removed. Keeping copies of all submitted forms and correspondence is advisable in case any issues arise.