Homestead

An application must be made to receive this exemption. A property owner who acquires property after January 1 may receive the residence homestead exemption for the applicable portion of the tax year immediately on qualification of the exemption if the previous owner did not receive the same exemption for the tax year. The property owner must occupy the property as the owner’s primary residence, and the residence homestead exemption cannot be claimed by the property owner on any other property. Every school district is required to exempt up to $140,000 of the assessed value. Other taxing jurisdictions may, at their option, grant a percentage homestead exemption up to and including 20 percent of the total value.

The Property Tax Code gives the definition of disabled as “under a disability for purposes of payment of disability insurance benefits under Federal Old-Age, Survivors, and Disability Insurance.” Defined as the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months. The owner qualifies for this exemption effective January 1 of any year in which they become 100% disabled. Applicants must provide proof of income through disability insurance. Documentation can be in the form of a Social Security awards letter, disability retirement insurance letter from other organizations, or a physician’s statement (provided by the district and sent to the district from their doctor) stating that they are 100% disabled and unable to hold any type of employment. Every school district is required to exempt up to $60,000 of the assessed value, and to place a freeze ceiling on their tax amount. Other jurisdictions in Galveston County can elect to give an optional disabled person exemption.

A property owner qualifies for the over 65 exemption effective January 1 of any year in which he or she turns 65 or purchases a residence after they are already 65 or older. Every school district is required to exempt up to $60,000 of the assessed value; and to place a freeze ceiling on their tax amount. Other jurisdictions in Galveston County can elect to give an optional over-65 exemption.

A surviving spouse may qualify for this exemption if: (1) the deceased spouse died in a year in which he or she qualified for the exemption; (2) surviving spouse was 55 years of age or older when the spouse died; and (3) the property was their residence homestead when the spouse died and remains the surviving spouse’s residence homestead.

Tax Code Section 11.131 entitles a disabled veteran who receives 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or is individually unemployable to a total property tax exemption. This exemption applies to all taxing jurisdictions on the Veteran’s residence homestead. A person who qualifies for an exemption under Section 11.131 after January 1 of a tax year may receive the exemption for the applicable portion of that tax year immediately on qualification for the exemption. If a person who qualifies for an exemption under this section no longer qualifies before the end of the year it ceases the day they no longer qualify.

A surviving spouse may qualify for this exemption if (1) they were married to a disabled veteran who would have qualified for the 100% Disable Veteran’s Homestead Exemption at the time of the veteran’s death; (2) the surviving spouse has not remarried since the death of the disabled veteran; and (3) the property was the surviving spouse’s residence homestead when the disabled veteran died and it remains their residence homestead. Applicant must provide a copy of death certificate and current VA letter identifying him/her as surviving spouse and stating that the deceased veteran had a service-connected disability of 100% at the time of his/her death. This exemption applies to all taxing jurisdictions.

This exemption may be granted for a disabled veteran with a service-connected disability rating less than 100% if their residence homestead was donated to them by a charitable organization at no cost to the disabled veteran. This exemption applies to all taxing jurisdictions.

A surviving spouse may qualify for this exemption if (1) they were married to a disabled veteran who qualified for the Donated Residence Homestead Exemption at the time of the veteran’s death; (2) the surviving spouse has not remarried since the death of the disabled veteran; and (3) the property was the surviving spouse’s residence homestead when the disabled veteran died and it remains their residence homestead. Applicant must provide a copy of death certificate and current VA letter identifying him/her as surviving spouse. This exemption applies to all taxing jurisdictions.

A person may qualify for this exemption if (1) they are the surviving spouse of a member of the United States armed services who was killed in action and (2) they have not remarried since the death of the member of the armed services. This exemption exempts 100% of the surviving spouse’s residence homestead property. Applicant must provide a copy of death certificate and current VA letter identifying him/her as surviving spouse. This exemption applies to all taxing jurisdictions.