Thinking about how to lower your Dallas property tax bill this year? You are not alone. The Texas homestead exemption can deliver real savings if you own and live in your home, but the rules and dates can be confusing. In this guide, you will learn exactly who qualifies, how to file in Dallas County, what documents you need, and how the exemption can change your mortgage escrow and monthly payment. Let’s dive in.
What the homestead exemption does
A Texas residence homestead exemption reduces the taxable value of your primary home. Lower taxable value means lower property taxes from the taxing units that apply the exemption. In Dallas County, that often includes your school district and may include your city and county depending on local options.
The exemption applies only to your principal residence. Second homes, short-term rentals, and investment properties do not qualify. Condos, townhomes, and manufactured homes can qualify if they are your primary residence and appear correctly on the appraisal roll.
Importantly, an exemption lowers the taxable value used to calculate your tax bill. It does not change the appraised market value shown on the appraisal roll. You can still protest your appraised value in a separate process if you believe it is too high.
Who qualifies: the January 1 rule
To receive a homestead exemption for a given tax year, you must own and occupy the property as your principal residence on January 1 of that year. That date controls eligibility for most homeowners. If you moved in or bought the home after January 1, your exemption generally starts the following tax year once you file.
Only one property can receive a homestead exemption per homeowner. Co-owners can qualify if at least one owner occupies the home as a principal residence and ownership is documented. Homes held in most revocable living trusts can qualify when the trust lets you occupy the property as your principal residence; the appraisal district may request trust documents to confirm.
Types of exemptions you can claim
General residence homestead
This is the standard exemption for an owner-occupied primary residence. It reduces the taxable value used to calculate your property taxes. The exact impact varies by taxing unit and any local options in place.
Over-65 and disability exemptions
If you are 65 or older or have a qualifying disability, you may be eligible for additional exemptions. These can provide significant savings and, for school district taxes, a tax “ceiling” that limits how much those taxes can increase on your residence while you remain eligible. These benefits are on top of the general homestead exemption.
Optional local exemptions
Cities, counties, and special districts in Dallas County may adopt additional residence homestead exemptions. The type and amount depend on local decisions and can change over time. Check with the Dallas Central Appraisal District and your local taxing units to confirm what is currently offered for your property.
What exemptions do not change
A homestead exemption does not alter your home’s appraised market value, which is used for notice and protest. It also does not change your mortgage interest or other federal tax items. The exemption only affects your local property tax calculation through a reduction of taxable value.
How to file in Dallas County
Filing is straightforward if you gather the right documents and watch the deadlines. Here is a simple process that works for most homeowners in Dallas County.
- Confirm eligibility. Make sure you owned and lived in the home as your principal residence on January 1 for the tax year you want.
- Gather documents. Collect proof of ownership and Texas residency tied to the property address.
- Complete the application. Use the residence homestead exemption application provided by the Dallas Central Appraisal District (DCAD).
- Submit by the deadline. File with DCAD by April 30 for the exemption to apply in that tax year. You can file by mail, in person, or online if offered.
- Watch for a decision. DCAD will notify you of approval or denial and apply the exemption if approved.
- Follow up on refunds. If you already paid a bill that is reduced by the exemption, contact the Dallas County Tax Office about refund procedures.
What to gather
- Proof of ownership: deed, closing statement, or your DCAD property account number.
- Proof of Texas residency and principal residence at the homestead address: a Texas driver’s license or state ID showing that address. Supplemental items like voter registration or utility bills can help if requested.
- Identification: the last four digits of your Social Security Number may be requested for verification.
- Over-65 or disability: proof of age or disability status, such as a driver’s license or a Social Security award letter.
- Trust-owned property: relevant trust pages showing your right to occupy the property as a principal residence.
Where and when to file
File with the Dallas Central Appraisal District. To receive the exemption for the current tax year, submit your application by April 30. If you file after April 30, the exemption typically starts the next tax year. DCAD publishes current instructions, forms, and any online filing options.
After you file
If DCAD approves your exemption, it appears on the appraisal roll and is used to calculate your tax bills. If DCAD denies your application, the notice will explain the reason and outline how to correct or appeal. If the exemption is applied after you already paid taxes for that year, you may be eligible for a refund from the tax collector for the affected taxing units.
If you bought a home recently
Your closing date matters. If you closed and moved in on or before January 1, you can apply to receive the exemption for that tax year. If you closed after January 1, you will generally file now and receive the exemption starting the next tax year.
A practical example: You close in March, file by April 30, and get approved. The exemption will typically apply for that year if you were the owner and occupant on January 1. If you were not, it should take effect the following year once the appraisal district updates your status.
How the exemption affects mortgage escrow
Homestead exemptions reduce your annual property taxes. How that shows up in your monthly housing cost depends on whether you escrow taxes with your lender.
If your loan includes escrow
Your lender estimates yearly taxes and collects a monthly escrow amount. When your homestead exemption reduces the tax bill, your servicer will usually lower the escrow requirement after an escrow analysis. Timing varies by servicer, but most adjust after receiving updated tax information.
You do not have to wait for the annual analysis. Once you receive your DCAD approval, you can send it to your servicer and request an updated escrow review. That can speed up any escrow surplus credit or reduce the escrow portion of your payment going forward.
If you pay taxes directly
If your mortgage does not escrow taxes, your monthly mortgage payment will not change. You will still benefit because your out-of-pocket property tax payments to the taxing units will be lower. Monitor your tax statements and pay by the posted deadlines.
Quick steps for borrowers
- Forward your DCAD approval to your mortgage servicer when you receive it.
- Ask for an escrow analysis to reflect the lower tax amount.
- Watch for either a refund of escrow surplus or a lower escrow payment in future months.
- Remember that principal and interest do not change because of a homestead exemption.
Practical tips for Dallas homeowners
- Mark your calendar. The two big dates are January 1 for eligibility and April 30 for filing.
- Update your ID. Make sure your Texas driver’s license or ID shows the homestead address before you file.
- Trust or co-ownership. Have trust pages and co-owner documentation ready if applicable.
- Protest is separate. An exemption reduces taxable value; an appraisal protest targets market value and follows its own deadlines.
- Missed April 30. File anyway. Late filings often apply to the next tax year, and in some cases retroactive relief or refunds may be available if you were eligible on January 1.
- Moving after 65 or with a disability. Confirm how your over-65 or disability status transfers or re-applies when you change residences.
Local agencies to contact
- Dallas Central Appraisal District (DCAD): filing forms, status, and eligibility questions.
- Dallas County Tax Office: tax bills, payment options, and refunds after exemptions are applied.
- Texas Comptroller of Public Accounts: statewide rules and guidance on homestead exemptions.
- Your city and school district: optional local exemptions and current tax rates.
Final thought: keep more in your pocket
The Texas homestead exemption is one of the simplest ways to reduce your annual housing cost if you own and occupy a home in Dallas. Know the January 1 rule, file by April 30, and keep your lender in the loop so your escrow reflects the savings promptly. A few steps now can lead to lower bills for years to come.
If you want help timing your purchase, navigating DCAD filing, or understanding how an exemption affects your monthly payment when you buy, our team is here to guide you. Reach out to Kin Worth Realty to talk through your plan.
FAQs
Who qualifies for a Texas homestead exemption in Dallas?
- You must own and occupy the property as your principal residence on January 1 of the tax year, and you can claim the exemption on only one property.
What documents do I need to file with DCAD?
- Provide proof of ownership, a Texas driver’s license or state ID showing the homestead address, and, if applicable, proof of age or disability; trust filers may need relevant trust pages.
When is the deadline to get the exemption this year?
- File your residence homestead application with DCAD by April 30 for it to apply to the current tax year; late filings usually take effect the next year.
I closed after January 1; can I get the exemption now?
- If you were not the owner and occupant on January 1, you generally will file now and receive the exemption starting the following tax year.
Does the homestead exemption change my appraised market value?
- No; it reduces taxable value for calculating taxes, but your appraised value can still be protested in a separate process if you believe it is too high.
How will my mortgage escrow change after approval?
- Your lender should adjust the escrow portion of your payment after receiving updated tax information; you can send your approval notice and request an escrow analysis to speed this up.
Can homes in a trust qualify for the exemption in Dallas?
- Yes, most revocable living trusts qualify if the occupant-beneficiary uses the home as a principal residence and provides requested trust documentation.
What if I already paid my tax bill before the exemption was applied?
- You may be eligible for a refund from the tax collector for the affected taxing units; contact the Dallas County Tax Office for procedures.
