The Homestead Exemption and Its Cap Start on Different Clocks

Think of the exemption and the appraisal cap as two separate clocks. The general homestead exemption lowers the value subject to tax. If you buy after January 1, you may receive it for the rest of that year when the former owner did not receive the same exemption. BCAD's chief appraiser decides whether the home qualifies.

BCAD accepts applications online, by mail, fax, or in person at 411 N. Frio St. You must own the home, use it as your main residence, and not claim another homestead. BCAD generally asks for a Texas driver's license or ID with the property address and lists an active-duty military exception. The usual deadline is April 30. Texas also allows a late residence-homestead application within two years after the tax delinquency date.

The appraisal cap runs later. It limits growth in appraised value to 10% over the prior year's value, plus new improvements. It does not cap market value or the tax bill. For a full-year homestead, the cap begins in the next tax year. A buyer who gets a partial-year exemption is treated as qualifying on January 1 of the following year. The cap begins one year after that. BCAD's records should show the capped year.