Missed Your Texas Homestead Exemption? Here’s How to Get a Retroactive Refund (Up to 2 Years!)

You are a first time home-owner in Texas. You moved in three years ago. You are taken aback by the ever-increasing property tax in your county. You dread receiving that annual property value assessment notice from the appraisal district. And you recently found out you could have saved a bunch on your property tax with homestead exemption! Feel like banging your head? :)

Don't worry, you are not alone! Thousands of new homeowners are not aware of this valuable property tax saving mechanism.

Luckily, all is not lost! You can still apply for late homestead exemption for up to two years and receive a refund for back taxes paid! Want to know more? Read on...

Section 11.431 of the Texas Property Tax Code covers Late Application for Homestead Exemption.

(a) [Effective January 1, 2022] ... the chief appraiser shall accept and approve or deny an application for a residence homestead exemption after the deadline for filing it has passed if it is filed not later than two years after the delinquency date for the taxes on the homestead.

Imagine you bought a newly built home in September 2020 for $300,000 and moved in the next month. You settle in, endure Texas’ unpredictable winter, and look forward to spring. Then, March or April rolls around, and you receive your first Notice of Appraised Value (NoV) from the county appraisal district.

You open the letter—$350,000?! How did your home’s value jump so quickly? You check online, and real estate sites estimate it at $370,000—which makes you feel better. The market is hot, and you happily pay your property tax when the bill arrives in the fall.

The same cycle repeats for the next few years. Then, in 2023, your NoV arrives with a market value of $700,000—double what it was when you first bought the house! Your property tax bill will be through the roof, and now, you’re panicking.

You start asking around—searching online, talking to neighbors, calling friends—until Joe, your neighbor, tells you about the homestead exemption. That’s when you realize you’ve been overpaying property taxes for years!

How Section 11.431 Saves You This law lets you apply for a late homestead exemption and claim it for the past two years — so in your case, 2022 and 2023.

But why not 2020 or 2021? Since you moved in during 2020, your base year for homestead exemption is January 1, 2021. That year, your home was taxed at its full market value.

However, starting January 1, 2022, your capped appraisal value should have applied. That means:

2022 appraised value should have been $385,000 ($350,000 + 10%), not the $410,000 claimed by the CAD. 2023 appraised value should have been $423,500 ($385,000 + 10%). By filing for a late homestead exemption, you can correct this mistake and save money on your property taxes!

Once your homestead exemption is approved, your appraisal district will have to re-appraise your property at the capped appraisal value and refund the excess property taxes you paid. You will automatically receive refund checks in the mail.

How Refunds Work Under Section 11.431(b)

If your late homestead exemption is approved after the appraisal review board finalizes records:

• The chief appraiser notifies the tax collector within 30 days.
• If you haven’t paid your taxes yet, the exempted amount is deducted from your bill.
• If you already paid, the collector automatically refunds the overpaid amount within 60 days — no need to apply!

In short, you'll get your refund automatically. No extra paperwork needed!

What is the last day to file homestead exemption in Texas? What if you forgot to file homestead exemption form in time?

Until 2021, the deadline for homestead exemptions used to be April 30th. Beginning 2022, you can apply for homestead exemption all year round. You can also file for a homestead exemption retroactively for up to two years. When filling out Form 50-114, check the 'Yes' box for 'Are you filing a late application' and indicate the tax year(s) for which you want to retroactively claim exemption. In case you have already paid property taxes for the past year(s), you will get a refund. If not paid, then you will get a new tax bill with a lower amount. If you file your homestead exemption before April 30th, you will be in time for the exemption to take effect when the current year's property tax bills are mailed in fall. Else, it will be applied retroactively.

Is it too late to file for homestead exemption in Texas?

Beginning January 1st 2022, new homeowners can apply for homestead exemption any time of the year. You can also file a late homestead exemption for up to two years after you move in to your primary residence. You can also file for a homestead exemption retroactively for up to two years. When filling out Form 50-114, check the 'Yes' box for 'Are you filing a late application' and indicate the tax year(s) for which you want to retroactively claim exemption. Several new homeowners are unaware of homestead exemption and find out about it after several years. By that time they would have paid an unfair amount of property taxes.