In Texas, adults with disabilities have access to a special tax relief known as the Disability Homestead Exemption. This exemption is designed to lower the tax burden on disabled individuals by reducing the taxable value of their homes. If you qualify, and are over the age of 55, you'll get an additional $10,000 exemption on top of the general homestead exemption of $100,000. An even more important benefit however, is that the school district puts a tax ceiling in place, using the amount of school taxes due the year you are approved for a disability homestead exemption. In subsequent years if the school tax bill goes up for everyone else, yours will remain the same amount as the year you qualified. (If the school district taxes go down below your ceiling in a given year, you will only be charged the lower amount for that year). It's also important to note that it is common for cities and other taxing jurisdictions to have Disability exemptions as well. Jurisdictions besides school districts also have the option to offer a tax ceiling for disabled persons (although this is not as common).

Let's say John, a disabled homeowner, qualifies for the Disability Homestead Exemption. His home is valued at $400,000. With the homestead exemption and disability exemption, the taxable value drops by $110,000. This means he’ll only be taxed on $290,000. In addition, the school district will only collect taxes for the amount set the year the disability exemption was approved.

In addition to being eligible for a homestead exemption, you must be age 55 or older to qualify for the disability exemption. You must also meet the Social Security Administration's criteria for disability, which include:

An interesting aspect of this exemption is its flexibility; you don't need to be receiving Social Security Disability benefits to qualify, but if you do receive SSDI benefits then you qualify automatically.

Applying for the Exemption

To claim the exemption, you'll need to fill out the standard "Application for Residential Homestead Exemption", check off the qualification near the top that you are disabled, and submit it to your local appraisal district. This application must be accompanied by

What if I move?

If you move to another home that will be your primary residence and you will own, your Disability homestead exemption takes effect immediately. In addition, you will not lose the benefit of a property tax ceiling. The amount of the school tax ceiling for the home you are moving to is determined by:

1) Calculating what percentage of your current tax ceiling amount is of the total school tax amount that year, for the home you will be leaving. For example, if your school tax ceiling is $5,000 and the actual school tax that year is $10,000, then the percentage is 50%, because $5000 is 50% of $10,000.

2) Applying that percentage to the total school tax that year for the home to which you will be moving. For example, if the total school tax for that home is $12,000, you calculate 50% of $12,000. Your new school tax ceiling will be $6,000. That means that the most school tax you will pay is $6,000. Alternatively if you are moving into a lower priced home where the total school tax for that year is $8,000 you simply calculate using the same percentage (in this example 50%) which puts your tax ceiling at $4,000.

Consider This:

Just remember, when we protest your taxes, our company makes sure to take into account all of your exemptions when billing for any tax savings. We also take into account all tax ceilings on the property.