The tax rules are federal, but the paper trail is local. In DFW, your appraisal district's January 1 market value, the deed recorded with the county clerk and your closing statement are the records a CPA will want when a sale price sits below value.
The rules that decide the tax on a below-market sale are federal, and our Texas guide to selling below market value walks through them. This page is the Dallas-Fort Worth layer. It shows where to pull a value for your house, how the deed gets recorded in Tarrant and Dallas counties, what happens to the homestead exemption, and who in the metro can answer the questions that come up.
Why value evidence matters for a DFW sale
When you sell to a stranger, the price is the number that counts. When you sell to a relative for less, the IRS gift tax page says a sale for less than full value may be a gift. The size of that gift is the value minus the price. So the first thing a CPA will ask is: what was the house worth on the day you sold it?
No single document answers that perfectly. A licensed appraisal dated near closing is the strongest record. Your appraisal district's number is a useful second reference, because it is public, free and easy to print.
Pull your appraisal district value
Texas Tax Code Sec. 23.01 says taxable property is appraised at its market value as of January 1, using generally accepted appraisal methods. Each DFW county has its own appraisal district that sets that number:
DFW value lookups: Tarrant Appraisal District · Dallas Central Appraisal District · Collin Central Appraisal District · Denton Central Appraisal District
When you look up the account, save three things: the market value, the tax year it applies to, and the exemptions listed. Keep in mind the January 1 date. A house sold in October may be worth more or less than its January figure, especially after repairs or damage. If the family price is far below the appraisal district number, expect your CPA to want an outside appraisal as well.
Recording the deed in Tarrant and Dallas counties
A family sale still needs a deed recorded with the county clerk, just like any other sale. The two largest DFW counties post these recording fees:
| County clerk | First page | Each added page |
|---|---|---|
| Tarrant County | $20 | $4 |
| Dallas County | $25 | $4 |
After recording, the deed becomes part of the public record. You can confirm it was filed by searching the county's online records. Tarrant County uses tarrant.tx.publicsearch.us. The Dallas County Clerk calls dallas.tx.publicsearch.us its Public Search site. Denton County says its real property records search is free to use. Print the recorded copy and keep it with your tax file.
What happens to the homestead exemption
Many family sales are a parent selling to a child who will live in the house. The parent's exemption does not move to the child. Tax Code Sec. 11.43 says a homestead exemption, once allowed, applies until the property changes ownership. The new owner has to file their own application with the appraisal district.
Tarrant Appraisal District's homestead page adds some practical details:
- There is no fee to file a homestead application.
- The applicant needs a Texas driver's license or ID card, and its address must match the homestead address.
- Since January 1, 2022, a qualified owner may claim the exemption from the date they own and occupy the home, but only if the previous owner did not claim a homestead exemption in the same tax year.
That last point matters in a parent-to-child sale. If the parent had a homestead exemption that year, ask the appraisal district how the year of the sale will be handled before the child files. Dallas, Collin and Denton residents apply with their own appraisal district.
Medicaid questions: local benefits counseling
If a parent is older or in poor health, the discount can matter for Medicaid as much as for taxes. The HHSC handbook (section I-2100) uses a 60-month look-back for transfers. HHSC says Area Agencies on Aging help people 60 and older, and that their services include benefits counseling and legal assistance. Its statewide line is 1-800-252-9240. DFW has three of these agencies:
- Tarrant County: the Area Agency on Aging of Tarrant County, part of United Way of Tarrant County, answers questions about Medicare, Medicaid and long-term care. Main phone: 817-258-8000.
- Dallas County: the Dallas Area Agency on Aging serves people 60 and older and their caregivers from 1341 West Mockingbird Lane.
- Collin and Denton counties: the North Central Texas Area Agency on Aging, part of NCTCOG, covers both counties and offers free benefits counseling.
Counselors can explain the program. They are not a substitute for an elder-law attorney when a specific transfer is being planned.
Who to call in DFW before you set a family price
- A CPA to run the gain, the gift amount and the buyer's future basis.
- A Texas real estate attorney to draft the deed and any note if the child is paying over time.
- An elder-law attorney if long-term care is a possibility.
- Legal Aid of NorthWest Texas if money is tight. It lists offices in Dallas, Fort Worth, McKinney and Denton.
This page describes public records and public rules. It is not tax or legal advice.
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Frequently asked questions
Where can I find the market value of my house in DFW?
Search your address on your appraisal district's website: Tarrant Appraisal District, Dallas Central Appraisal District, Collin Central Appraisal District or Denton Central Appraisal District. Texas Tax Code Sec. 23.01 has them appraise property at market value as of January 1, so note which tax year the number is for.
How much does it cost to record a deed in Tarrant or Dallas County?
The Tarrant County Clerk charges $20 for the first page and $4 for each additional page. The Dallas County Clerk charges $25 for the first page and $4 for each additional page.
Will my child keep my homestead exemption if I sell them the house?
No. Under Tax Code Sec. 11.43, a homestead exemption applies until the property changes ownership. Your child must file a new application with the appraisal district. Tarrant Appraisal District says there is no fee to file.
Where can a DFW family get free help with Medicaid questions before a family sale?
Start with your Area Agency on Aging: the Area Agency on Aging of Tarrant County, the Dallas Area Agency on Aging, or the North Central Texas Area Agency on Aging, which covers Collin and Denton counties. HHSC lists benefits counseling among the services these agencies provide. They do not replace an elder-law attorney.
Sources
- Texas Tax Code, Chapter 23 (Sec. 23.01 appraisal at market value)
- Texas Tax Code, Chapter 11 (Sec. 11.43 exemption applications)
- Tarrant Appraisal District, Homestead exemption
- Tarrant County Clerk, Real estate records fee schedule
- Dallas County Clerk, Recording fees and payment
- Dallas County Clerk, Foreclosures (records search moved to publicsearch.us)
- Denton County Clerk, Foreclosure information (free real property records search)
- Texas HHSC, Area Agencies on Aging
- Area Agency on Aging of Tarrant County
- Dallas Area Agency on Aging
- NCTCOG Area Agency on Aging, direct services
- Texas HHSC, MEPD Handbook I-2100, Look-Back Policy
- IRS, Gift tax
- Legal Aid of NorthWest Texas, Locations
General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.