Homestead Exemption Basics for Princeton Homeowners

Own a home in Princeton and want the simplest way to trim your property tax bill? A Texas homestead exemption is often the easiest win. If you plan ahead and file correctly, you can lower the taxable value of your primary residence and keep more money in your pocket each year. In this guide, you’ll learn who qualifies, the exemptions you can use, how savings work, and exactly how to file in Collin County. Let’s dive in.

What a homestead exemption does

A homestead exemption reduces the taxable value of your primary residence for property taxes. It is not a rebate or a credit. Your taxes are calculated on the appraised value after exemptions are subtracted, which lowers the amount you owe.

Some exemptions apply to school district taxes, while others can also apply to city, county, or special districts if those entities adopt them. Your total bill reflects the combined rates for all taxing units that serve your address.

Who qualifies in Princeton

To qualify in Texas, you must meet these basics:

• You own and occupy the home as your principal residence on January 1 of the tax year.
• You claim only one residence homestead in Texas at a time.
• You provide proof of ownership and occupancy when you apply.

Certain homeowners may also qualify for additional exemptions based on age, disability, or veteran status.

Common exemption types

General residence homestead

The general residence homestead exemption reduces your home’s taxable value, most notably for school district taxes. Some local taxing units may also offer optional homestead reductions. The general exemption is the foundation most owner-occupants use.

Age 65 or older or disabled person

If you are 65 or older, or you qualify as a disabled person, you may receive additional exemption amounts. You may also qualify for a tax ceiling on school district taxes, which can keep that portion of your bill from increasing after you qualify, subject to specific rules.

Disabled veteran and surviving spouse

Texas provides special property tax benefits for disabled veterans based on disability rating, and for certain surviving spouses. These can range from partial to substantial reductions in taxable value, as set by state law and administered locally.

Surviving spouse of a qualifying homeowner

In some cases, the surviving spouse of a qualifying homeowner, including those 65 or older or certain disabled veterans, may be able to continue the exemption if specific conditions are met and the spouse remains in the homestead.

How savings are calculated

Your tax bill is based on this formula: Tax = (Appraised value − exemptions) × combined tax rate. Exemptions lower the value used to compute your taxes. They do not change the rates set by your school district, city, county, or special districts.

Here is a simple example method you can follow:

1. Start with your certified appraised value.
2. Subtract the general homestead amount, plus any age, disability, or veteran exemptions you qualify for.
3. Multiply the result by the total combined rate for your address to estimate your annual tax.
4. Compare the result with and without exemptions to see your savings.

Because exemption amounts and local tax rates can vary by taxing unit and year, check current figures with the Collin Central Appraisal District and your local taxing units before you run numbers.

Princeton taxing units to know

Most Princeton homeowners will see some or all of these on a tax bill:

• Princeton Independent School District
• City of Princeton
• Collin County
• Collin College or other community college district, if applicable
• Special districts such as municipal utility districts or emergency services districts, depending on your neighborhood

Optional homestead exemptions can vary by taxing unit and are sometimes updated by local actions. Review each unit’s current policy for the latest options.

How to apply in Collin County

Follow these practical steps to file your homestead exemption in Princeton:

1. Confirm eligibility

• You owned and occupied the home as your principal residence on January 1 of the year you are applying.

2. Gather documents

• Proof of ownership, such as a recorded deed or property tax statement.
• Proof of occupancy with your address on a Texas driver’s license or state ID. You may also be asked for vehicle or voter registration, or other official mail.
• For age-based exemptions, proof of date of birth.
• For disability or veteran exemptions, the required documentation from your physician or the U.S. Department of Veterans Affairs, as applicable.

3. Complete the application

• File your application with the Collin Central Appraisal District. Many appraisal districts offer an online portal. Check CCAD for the most current forms and filing methods.

4. Mind the deadline

• Applications commonly must be filed by April 30 to be effective for the current tax year. Late filings may still be accepted, and some exemptions can be applied retroactively in certain cases. Confirm current deadlines and options with CCAD.

5. Watch for approval

• After review, CCAD will apply approved exemptions to the appraisal roll. Your Collin County Tax Office bill will reflect the change.

After you file

Most homestead exemptions stay in place automatically in future years, as long as you continue to own and occupy the home and your status does not change. If you move, you cannot claim more than one homestead at a time, so you should notify CCAD and apply for the exemption on your new residence.

If an application is denied, you may pursue your rights with CCAD and, if needed, before the Appraisal Review Board. If you believe your appraised value is too high, you can also protest the valuation by the statutory deadline listed on your notice of appraised value.

Special situations to watch

• Tax ceiling for 65+ or disabled: When you qualify, your school district taxes may be frozen at the level for that year, with limited adjustments. This protection can help stabilize your bill as appraisals change.
• Home improvements: Significant improvements can affect your taxable value. Some adjustments may interact with tax ceilings, so review details with CCAD.
• Rentals and second homes: You cannot claim a homestead exemption on a rental property or second home. The property must be your principal residence.
• Moving within Texas: Apply for a new exemption at your new home, and remove or update the exemption on your prior residence.
• Retroactive relief: In certain circumstances, CCAD may grant exemptions retroactively. Ask about your specific timeline if you missed the filing window.

Local resources

Use these offices to verify current exemption amounts, deadlines, and procedures:

• Collin Central Appraisal District: Applications, appraisal values, protest deadlines, and exemption status.
• Collin County Tax Office: Billing and payment questions once exemptions are applied.
• Princeton ISD: School tax rates and questions about the school portion of your bill.
• City of Princeton: City tax rates and local exemption policies.
• Texas Comptroller of Public Accounts: Statewide rules and explanations of homestead and veteran exemptions.
• Texas Veterans resources: Guidance for disabled veteran exemptions and required documentation.

Make your next step easy

If you are buying, selling, or planning a move in or around Princeton, clear guidance on taxes and timelines can save you money and stress. For a calm, step-by-step plan tailored to your home and neighborhood, reach out to Asha Rani. You will get local insight and a smooth, concierge-style experience from search to closing.

FAQs

What is a Texas homestead exemption for Princeton homeowners?

• It reduces the taxable value of your primary residence, which lowers your property tax bill, and it commonly applies to school district taxes with possible local options.

When am I eligible to claim a homestead in Collin County?

• You must own and occupy the home as your principal residence on January 1 of the tax year, and you can claim only one homestead at a time.

Do I need to reapply for my Princeton homestead every year?

• No, most exemptions continue automatically while you own and occupy the home, unless your status changes or CCAD requests verification.

Can I claim a homestead exemption on a rental or second home?

• No, the property must be your principal residence to qualify for a Texas residence homestead exemption.

How does the exemption affect my property tax rate in Princeton?

• It does not change your tax rate; it lowers your taxable value, and your bill is calculated on the reduced amount using the combined rates of your taxing units.

What is the 65+ or disabled tax ceiling on school taxes?

• Once you qualify, your school district taxes are generally frozen at the amount for that year, subject to specific rules and adjustments for certain changes.

What if I miss the April 30 filing window in Collin County?

• Late applications may still be accepted, and some exemptions can be applied retroactively; contact CCAD to review your options and deadlines.

Where do I file and what documents do I need in Princeton?

• File with the Collin Central Appraisal District and include proof of ownership and occupancy, plus age or veteran documentation if you are applying for those exemptions.