Bought a home in Argyle or another Denton County neighborhood and wondering how the Texas homestead exemption works for 2025? You are not alone. The process is straightforward once you know the January 1 rule, what to file, and where to send it. This guide walks you through eligibility, filing with the Denton County Appraisal District, timelines, and simple examples to estimate savings. Let’s dive in.
Homestead exemption basics
A Texas homestead exemption lowers the taxable value of your primary residence for one or more local taxing entities. That reduced value is what local governments use to calculate your property taxes. The Denton County Appraisal District, often called DCAD, administers exemptions. The tax office and each taxing unit handle billing and payment.
Keep in mind that different taxing units can offer different exemptions. School districts commonly apply the homestead exemption, while cities, the county, and special districts may have their own rules.
Who qualifies in 2025
To qualify, you must own and occupy the home as your principal residence on January 1 of the tax year. If you lived in the home on January 1, 2025, you can apply for the 2025 exemption. If you moved in after January 1, 2025, you will generally be eligible for the 2026 exemption once you meet the January 1 occupancy test.
You must apply for the exemption since it is not automatic. Once approved, it typically stays in place while the home remains your principal residence. You can only claim one residence homestead in Texas at a time, and you must notify DCAD if you move or your status changes.
Common exemption types
- General residence homestead exemption. This is the standard exemption for an owner-occupied primary home.
- Over-65 or disabled person exemptions. These are separate, often larger exemptions. They can also include a school tax “ceiling” that stabilizes school taxes in future years.
- Disabled veteran and surviving spouse exemptions. These are based on disability ratings, with additional provisions for surviving spouses in some cases.
- Surviving spouse of a first responder or similar public safety categories. Availability depends on specific qualifications.
Local amounts and whether optional exemptions apply can vary by taxing unit. Check current guidance from DCAD and your specific taxing entities for details.
How to file in Denton County
Where to file
File your homestead exemption application with the Denton County Appraisal District. Do not file the appraisal exemption with the county tax office since the tax office handles billing and collections.
When to file
The key test is whether you owned and occupied the home as your principal residence on January 1. If you did, file as soon as possible so it appears on the current year’s appraisal roll. Many appraisal districts list an April 30 window for that year’s applications, but calendars can vary. If you miss a listed deadline, contact DCAD since late applications may be accepted in some situations.
What to include
- Proof of ownership, such as a deed or closing statement.
- Proof of principal residence, such as a Texas driver’s license or Texas ID that shows the homestead address. If your ID is not updated yet, some appraisal districts accept alternatives like vehicle registration, voter registration, a utility bill, or closing documents. Requirements can vary, so verify DCAD’s current checklist.
- For over-65, disability, or disabled veteran exemptions, include the required medical or military documentation.
After you file
DCAD will approve or deny your application. If approved, the exemption reduces your taxable value for the applicable taxing units. If denied, you can request reconsideration or file a protest with the Appraisal Review Board. Once granted, you typically do not need to reapply each year unless your ownership or occupancy changes. Always notify DCAD if your status changes.
How savings work
Your savings equal the exemption amount or reduction in taxable value multiplied by the applicable tax rate. Your total tax rate is the sum of the rates set by your school district, city, county, and any special districts that tax your parcel.
Illustrative example: school taxes
- Appraised value: 400,000 dollars
- School-district homestead exemption: 20 percent (applies to school taxes only in this example)
- Reduction in taxable value: 80,000 dollars
- School tax rate: 1.2 percent
- Estimated reduction in school taxes: 80,000 × 0.012 = 960 dollars per year
This is a simple illustration. Actual local rates and exemption amounts vary, and not all taxing units apply the same exemptions.
Illustrative example: optional local exemption
- Appraised value: 650,000 dollars
- Optional local exemption (hypothetical): 10 percent for a city
- Reduction in taxable value: 65,000 dollars
- City tax rate: 0.5 percent (example)
- Estimated reduction in city taxes: 65,000 × 0.005 = 325 dollars per year
Your situation will depend on which taxing units serve your home and what exemptions those units allow.
Quick checklist for Argyle buyers
- Confirm the January 1 test. Were you the owner and occupant on January 1 for the tax year you want to claim? If yes, apply for that year. If not, plan to file for the next year.
- Gather documents. Have your deed or closing statement and a Texas driver’s license or Texas ID with your homestead address. Collect any supporting documentation for over-65, disability, or veteran exemptions.
- File with DCAD. Submit your application as soon as you meet the January 1 occupancy test. Monitor mail or email for DCAD updates.
- Review your appraisal notice. When it arrives in the spring, check that your exemption appears as expected. Note protest deadlines if you disagree with value or a denial.
- Notify your mortgage servicer. Once your exemption shows on the roll, let your servicer know so escrow projections can be updated.
Special cases to know
Over-65 and disabled person exemptions can provide additional tax relief and a school tax ceiling that can help stabilize future school taxes. Disabled veteran exemptions are based on disability ratings, with provisions for surviving spouses in some situations. Documentation requirements apply, so gather appropriate medical or military paperwork when you file.
Avoid these mistakes
- Missing the January 1 rule. You must own and occupy the home on January 1 to qualify for that tax year.
- Assuming it is automatic. You must apply for a homestead exemption. It does not happen on its own.
- Not updating identification. Make sure your Texas ID reflects the homestead address, or be ready with acceptable alternate proof.
- Expecting every unit to offer the same relief. School districts commonly apply homestead exemptions. City, county, and special district policies vary.
- Overlooking your appraisal notice. If you disagree with the value or an exemption decision, act within the protest window.
Get local help, done right
If you recently moved to Argyle, Denton, or a Denton County area within the Dallas–Plano–Irving corridor, the homestead exemption is one of the simplest ways to manage your annual tax burden. A short consult can save you time and reduce surprises when tax bills arrive.
Schedule a Concierge Consultation with the North Texas Team for step-by-step guidance, local tax-rate context, and a clear filing plan. Bring:
- Your deed or closing statement
- Texas driver’s license or Texas ID with your homestead address
- Any documents for over-65, disability, or veteran status
- Recent mortgage statement so we can discuss escrow timing
FAQs
When am I eligible if I moved to Argyle in 2025?
- If you owned and occupied the home as your principal residence on January 1, 2025, you can apply for the 2025 exemption; if you moved in after January 1, you will generally be eligible for 2026.
Do I need to reapply each year for a Denton County homestead exemption?
- No; once approved, it typically remains in place until you move or your eligibility changes, and you must notify DCAD if your status changes.
Can I claim two homesteads if I own homes in Dallas and Denton?
- No; Texas law allows only one residence homestead per person at a time.
Is the homestead exemption automatic when I buy a house in Denton County?
- No; you must apply with the Denton County Appraisal District for the exemption to be added to your appraisal record.
If my homestead exemption is denied in Denton County, what can I do?
- You can ask DCAD to reconsider or file a protest with the Appraisal Review Board and provide evidence of ownership and occupancy.
Will my mortgage escrow drop right away after my exemption is approved?
- Not automatically; escrow is set by your lender, so notify your servicer after approval so they can update estimates when tax bills reflect the exemption.
Can I get refunds for prior years if I forgot to apply for my homestead?
- Late applications may be accepted in some circumstances; contact DCAD promptly to discuss options and timelines for corrections.
