Property taxes in Texas can feel like alphabet soup, especially when you are trying to budget for a new year or a recent move. If you own or plan to own a primary residence in Montgomery, you may qualify for a homestead exemption that lowers the taxable value of your home. In this local guide, you will learn what a homestead exemption is, who qualifies, how to apply with the Montgomery Central Appraisal District, and how the savings show up on your bill. Let’s dive in.
What a homestead exemption does
A homestead exemption reduces the taxable value of your owner-occupied primary residence. It does not change your local tax rates. It simply lowers the portion of your home value that those rates apply to.
Your appraisal district determines your home’s appraised value. Then exemptions are subtracted to get your taxable value. Your tax bill is calculated by multiplying the taxable value by the combined rates for your school district, county, city, and any special districts.
Exemptions apply for the tax year in which they are granted. You should apply as soon as you qualify.
Who qualifies in Texas
To claim a residence homestead exemption in Texas, you must own and occupy the property as your primary residence. You can claim only one residence homestead in a given year. A mortgage or refinance does not affect eligibility as long as the home remains your principal residence.
You must file an application; exemptions are not automatic, even if the prior owner had one.
Types of exemptions in Montgomery
General residence homestead
If you own and occupy your home as your principal residence, you can apply for a general homestead exemption. This provides a direct reduction to your taxable value.
Age 65 or older and disabled person
Homeowners who are 65 or older, or who qualify as disabled, may receive additional exemptions that further reduce taxable value. Many homeowners 65 and older also receive a school district tax ceiling. Once set, school taxes for that home are limited based on the amount at the time the ceiling is established while you remain qualified.
Disabled veteran and surviving spouse
Disabled veterans with a service-connected disability may receive exemptions based on their disability rating. In some situations, the benefit can be substantial. Surviving spouses of qualifying veterans may also be eligible to continue certain exemptions when specific conditions are met. Documentation from the U.S. Department of Veterans Affairs is typically required.
Surviving spouse provisions
Surviving spouses of homeowners who qualified for age 65 or disability exemptions, or for disabled veteran exemptions, may be able to continue or transfer benefits under certain conditions. The appraisal district can explain which provisions apply to your situation.
How to apply with MCAD
Your first stop is the Montgomery Central Appraisal District (MCAD). MCAD processes residence homestead applications and determines eligibility. After approval, your property’s taxable value will reflect the exemption on future tax bills from the relevant tax offices.
Follow these steps:
- Get the residence homestead application from MCAD.
- Complete and sign the form.
- Gather required documents to prove ownership and residency.
- Submit your application to MCAD by the deadline.
- Watch for MCAD’s notice of approval or a request for more information.
Deadline: File your initial homestead application by April 30 of the year you want the exemption to apply. If you miss the deadline, contact MCAD. There may be limited options for late filing or certain prior-year relief.
Documents to gather
Prepare these common items. MCAD will provide the exact list.
- Proof of ownership, such as a recorded deed
- Proof of Texas residency with the property address, such as a Texas driver’s license or Texas ID card
- Texas vehicle registration, if requested
- Last four digits of Social Security numbers for owners, if requested
- For age 65 or older: driver’s license or birth certificate
- For disability: required documentation from the Social Security Administration or as specified by MCAD
- For disabled veterans: VA award letter or certification of disability rating
- For surviving spouses: death certificate and documents showing eligibility
How the savings work
Think about savings with a simple formula:
- Taxable value = appraised value − homestead exemption amounts
- Property tax owed = taxable value × combined local tax rate
- Estimated tax savings = exemption amount × combined tax rate
Illustrative example: If your home is appraised at $300,000 and your exemptions reduce taxable value by $25,000, your taxable value would be $275,000. The annual savings equals $25,000 multiplied by your combined local tax rate for your school district, county, city, and any special districts. The exact combined rate depends on your property’s location and the taxing units that serve it.
Common scenarios and answers
- Buying a home this year: Apply as soon as the home becomes your principal residence. Do not assume the previous owner’s exemption will carry over.
- Moving within or out of Montgomery County: Apply for a new homestead at your new primary residence. Some limitations, such as a school district tax ceiling for over-65 homeowners, may be transferable. Ask MCAD for the correct steps.
- Refinancing: A refinance or home equity loan does not cancel a homestead exemption if the property remains your principal residence.
- Missed the deadline: Contact MCAD promptly. Limited options may exist for late filing or certain prior-year relief.
- Selling your home: Homestead exemptions affect property taxes, not market sale price. They also do not change federal capital gains rules.
Local next steps in Montgomery
- Contact the Montgomery Central Appraisal District to confirm your eligibility, request the current application, and verify documentation.
- Review your Montgomery County Tax Office statements to see when an approved exemption appears on your bill.
- If your property is within a city or specific school district, note that adopted exemptions and tax rates vary by taxing unit. Confirm how each unit applies exemptions to your property.
Quick homeowner checklist
- Confirm the home is your principal residence
- Gather deed and Texas ID with the property address
- Collect any disability or veteran documentation
- Complete MCAD’s residence homestead application
- Submit by April 30 for current-year benefits
- Watch for MCAD’s approval notice, then verify on your next tax statement
When you are planning a move or purchase, clear guidance helps you make confident decisions. If you want a smoother transition into your Montgomery home, connect with Devyn Winkler for local expertise and a thoughtful, concierge-style experience.
FAQs
What is a homestead exemption in Texas?
- It reduces the taxable value of your owner-occupied primary residence, lowering your property tax bill without changing tax rates.
Who can claim a homestead exemption in Montgomery County?
- Homeowners who own and occupy the property as their principal residence can apply for a residence homestead exemption with MCAD.
When is the homestead application deadline with MCAD?
- File by April 30 of the year you want the exemption to start; contact MCAD if you miss it to review limited late-filing options.
How does the over-65 school tax ceiling work?
- After it is set, your school district taxes are limited based on the amount at the time the ceiling is established while you remain qualified.
Do I need to reapply every year for my homestead exemption?
- Generally no, but you must inform MCAD if your primary residence or eligibility changes.
Does refinancing affect my existing homestead exemption?
- No. Refinancing or having a mortgage does not remove the exemption if the home remains your principal residence.
How do disabled veteran exemptions work locally?
- Disabled veterans may qualify for additional exemptions based on VA disability rating; surviving spouses can be eligible under certain conditions.
Where do I get the application for Montgomery?
- Request the residence homestead application and instructions directly from the Montgomery Central Appraisal District.
