Working Remotely in Texas: What It Means for Your Property Taxes
If you’re among the many people who’ve relocated to Texas for remote work — or who split time between a Texas property and a home elsewhere — here’s what’s relevant for your property taxes specifically (a separate topic from state income tax questions, which we’ll touch on briefly). For expert advice and loan quotes related to property taxes, contact American Finance and Investment Co., Inc. (AFIC).
If You’ve Moved to Texas: Homestead Exemption Likely Applies to You
If you’ve relocated to Texas — even if your employer is based elsewhere — and your Texas property is genuinely your primary residence, you generally can qualify for the homestead exemption. Where your employer is located doesn’t affect this; what matters is whether you actually live in Texas as your principal residence.
As discussed throughout our content, this exemption isn’t automatic — it requires an application. If you’re a recent transplant who bought a home in Texas, this is worth checking off your list if you haven’t already.
If You Split Time Between Two Homes: Only One Can Be ‘Homestead’
Some remote workers maintain homes in two locations — perhaps a Texas property and a home in another state, splitting time between them. Here’s the key point: only one property can be your ‘principal residence’ for homestead exemption purposes.
If you claim a Texas homestead exemption, you generally shouldn’t also be claiming a similar primary-residence-based property tax benefit on a different property in another state. Most states have comparable ‘one homestead’ rules, and there can be cross-checks between states — claiming homestead-type benefits in two places for two different properties can create issues if discovered, beyond just the property tax implications themselves.
If you genuinely split time and aren’t sure which property should be your ‘homestead’ for tax purposes, this is worth thinking through honestly based on where you actually spend the most time and consider home — and potentially discussing with a tax professional if the situation is ambiguous.
A Separate (and More Complex) Question: State Income Tax
Property tax and state income tax are different taxes, and the considerations for remote workers are quite different for each:
- Property tax (the focus of this article): based on where you own property and which is your primary residence
- State income tax: if you live in Texas (no state income tax) but work for an employer based in a state that does have income tax, some states have rules that could create income tax obligations for remote workers based on the employer’s location, regardless of where the employee actually lives and works
This income tax question is genuinely complex, varies significantly by state, and is a separate topic from property taxes entirely. If this applies to your situation, a tax professional (CPA) familiar with multi-state remote work taxation is the right resource — this article doesn’t address this question further, but wanted to flag that it’s a different consideration from the property tax/homestead questions above.
Practical Checklist for Recently Relocated Remote Workers
- Apply for homestead exemption on your Texas property if it’s your primary residence and you haven’t yet
- Confirm you’re not still claiming a similar benefit on a property in your previous state, if that property is no longer your primary residence
- Separately, consult a tax professional about any state income tax questions related to your remote work arrangement
If You’re Dealing With Delinquent Texas Property Taxes
Whatever brought you to Texas, if property taxes on your Texas home have become delinquent — perhaps due to the disruption of relocating, or simply being unfamiliar with how Texas property taxes work compared to where you came from — the options discussed throughout our content apply just as they would for any homeowner.
Manage Your Property Taxes with AFIC
Whether you’re settling into Texas after a move, navigating life across two homes, or dealing with a property tax situation, AFIC can help with the property tax piece.
American Finance & Investment Co., Inc. (AFIC) has helped Texas property owners understand and manage their property tax obligations for over 80 years. See if you qualify for a property tax loan.
Frequently Asked Questions
Yes, generally — what matters is that the Texas property is your primary residence, not where your employer is located.
No — only one property can be your principal residence for homestead purposes; claiming this in two places can create issues.
No — property taxes are based on the property and your residency, not your employer’s location.
Some states have rules that could create income tax obligations based on an employer’s location, regardless of where the employee lives — a complex, separate topic requiring a CPA.
Whether they’ve applied for the homestead exemption on their new Texas home, if it’s their primary residence.
