“Danger Will Robinson! Danger!” Whenever the robot said those words to young Will, we knew something bad was about to happen on the old television program Lost in Space. It’s property tax appraisal season so let me just say, “Danger Dallas homeowners! Danger!”
Believe it or not, the danger isn’t a scary tax bill — it’s the risk of Texas homeowners failing to return any requested paperwork to recertify their homestead exemption with their county appraisal district.
Skipping this important step could lead to a large — and incredibly scary — tax bill due in October 2025.
When the Texas Legislature passed Proposition 4 in 2023, the annual Texas homestead tax exemption increased from $40,000 to $100,000. However, Prop. 4 also required appraisal districts to recertify their homestead exemptions every five years.
The Real Danger: A Higher Tax Bill
Many North Texas homeowners have already received a letter from their appraisal district in January or February — and might have ignored it.
Typically, homeowners receive their homestead exemption when they purchase the home. Until the law changed, the exemption stayed in effect until the property was sold.
To complicate matters, there is no central system by which appraisal districts can recertify their residents’ homestead exemptions. Each of the state’s 254 appraisal districts is navigating this change individually. So, the process in Tarrant County, for example, differs from the one used by the Dallas Central Appraisal District (DCAD).
According to the DCAD website, letters were mailed to select homeowners in December, asking them to recertify their homestead exemption.
“If you have received a reapply letter from DCAD you must complete the 2 page application and attach a copy of your Texas driver’s license or Texas ID card within 30 days.”
— Dallas county appraisal district website
Missing Exemption Could Cause A Huge Headache
If you are not sure whether you have received a letter from your appraisal district, there are still ways to confirm your homestead and other exemptions — and to reapply if needed.
According to the DCAD website, “If your exemption is removed prior to March 30 in a given year, then our agency will send you an appraisal notice April 15 of that year showing the property no longer has a homestead exemption in place.” That notice will include the paperwork you need to reinstate your homestead exemption.
If you do not want to wait until April 15, you may log into your respective appraisal district website and search for your property. While the deadlines for turning in the required paperwork vary by district, it’s important to take care of it well before October 1, when the final tax bills are mailed.
Homeowners who have escrow accounts with their mortgage company should check their exemptions as well. Escrow account estimates are based on the prior year’s exemptions and estimated tax liability. If the homestead exemption is removed, you could appear to owe more than you really do.
There is still plenty of time to get your exemption back on your home if it’s been removed. You just do not want to wait to do so. You will be running the danger of getting a huge headache as you sort it all out.
