Key Takeaways
The Texas homestead exemption lowers your home's taxable value, which shrinks your annual tax bill.
It now exempts $140,000 of your home's value from school district taxes.
You qualify if the home is a Texas primary residence that you own.
File Form 50-114 with your appraisal district by April 30; we at Ownwell file and monitor it for you at no upfront cost.
Texans take note: Your state has one of the most generous property tax exemptions in the nation. Are you taking advantage of it? If you haven't yet filed for the Texas homestead exemption, you could be missing out on significant savings on your county taxes.
Texas property taxes are a fact of life no matter where you live, and here they run high. The state's median effective property tax rate is 1.48%.
Texas is one of just a handful of states with no personal income tax. Cities and counties in the Lone Star State rely heavily on property tax revenue to pay for public services. With the median property tax bill rising more than 25% over the past several years, many owners are seeking relief.
Enter the Texas homestead exemption. For Texas homeowners who qualify, this residential homestead exemption will have a sizable impact on your annual tax bill. In this article, we'll cover everything you need to know about the exemption so you can take your first step toward savings now.
What Is the Texas Homestead Exemption?
In short, the exemption excludes ("exempts") part of your home's value from taxation. The result is a lower assessed value and a lower annual tax bill.
The general residence homestead exemption, set out in Section 11.13(b) of the Texas Tax Code, has two parts:
Mandatory school district exemption: every Texas school district exempts part of a qualifying homestead's value, up to 20 acres. A 2025 constitutional amendment raised it from $100,000 to $140,000.
Local option exemption: your city, county, or district may add an exemption from $5,000 up to 20% of your home's value.
The general statewide exemption helps every qualifying homeowner. You may also qualify for extra exemptions if you fall into one of these categories:
Homeowners age 65 or older
Disabled homeowners
Disabled veterans
Surviving spouses of first responders killed in the line of duty
Unsure Which Exemptions You Qualify For?
Who Qualifies? Eligibility Criteria
Now for the big question: Are you eligible for the Texas homestead exemption? You qualify for the general exemption if you meet these three criteria:
It is your primary residence as of January 1st for the year you're applying.
You have an ownership interest in the property, even partial ownership.
You have not claimed a residential exemption on another property, in Texas or elsewhere.
Your primary residence can be a house, condo, or mobile home, and its address should match your driver's license and tax returns. Meet those three criteria, and you qualify for the general homestead exemption.
Several groups qualify for additional exemptions on top of the general one. The table below shows who qualifies and how much each exemption is worth.
Exemption Type | Who Qualifies | Exemption Amount |
|---|---|---|
General residence homestead | Any Texas homeowner on their primary residence | $140,000 school-district value |
Senior/Age 65+ | Homeowners 65+ (a surviving spouse 55+ may keep it) | Additional $60,000 school-district exemption plus a school-tax ceiling |
Disabled person | Meets the Social Security Administration (SSA) disability definition | Additional $60,000 school-district exemption (cannot be combined with senior exemption) |
Disabled veteran | Veterans with a U.S. Department of Veterans Affairs (VA) disability rating | $5,000 to $12,000 by rating; up to 100% if rated 100% disabled |
Surviving spouse of a first responder or service member killed in the line of duty | Unmarried surviving spouse | Up to a total (100%) exemption |
So what's the simplest way to claim the Texas homestead exemption and lower your tax bill? Sign up with Ownwell.
Our team of local Texas experts knows these rules inside and out, so you don't leave money on the table. We work directly with your county to file your exemption paperwork correctly. We also pursue exemption refunds you were owed in prior years.
On average, our customers save $774 a year. To estimate your own savings, answer a few short questions.
How Much Will You Save?
Your tax bill comes from a simple formula: Assessed Value × Tax Rate = Annual Tax Bill. Here is how that math plays out for a $500,000 home in Travis County at the county's current effective rate.
Line Item | Amount |
|---|---|
Home value before exemption | $500,000 |
Homestead exemption | $140,000 |
Taxable value after exemption | $360,000 |
Effective tax rate | 1.30% |
Annual bill before exemption | $6,500 |
Annual bill after exemption | $4,680 |
Annual savings | $1,820 |
Your savings scale with your home's value and your total exemptions. A higher-value home, or added exemptions like the 65+ benefit, pushes your yearly savings higher.
Benefits of the Texas Homestead Exemption
Beyond the immediate cut to your taxable value, the exemption keeps saving you money year after year. Your property taxes are figured from your assessed value, not your full market value.
Once your exemption is in place, the homestead protection cap limits how much your assessed value can rise, to no more than 10% a year. The cap applies to any property that held an exemption the previous year.
As your home's market value climbs, that cap keeps your taxable value from spiking. Your savings compound the longer you hold the exemption.
How to Apply for the Homestead Tax Exemption
Two facts matter most before you start:
You must apply: the exemption is not automatic.
Reverification: as of September 2023, the state reverifies your eligibility at least once every five years.
The process varies slightly by county, so check your local appraisal district website for specifics. In most cases, the first step is to complete the Residence Homestead Exemption Application, Form 50-114. You can find it alongside other forms on the Texas Comptroller's website.
You'll also need an image of your Texas driver's license to submit with the form. If there's an additional owner, include a picture of theirs too. Make sure the license address matches your application.
Submit the documents to your county appraisal district after January 1 and before the April 30 deadline. If you miss it, you can still file late, up to two years after the deadline.
If you inherited the property, you'll need extra documentation showing your ownership interest. The same is true for the disabled veteran and surviving spouse exemptions. Check with your appraisal district for the exact documents.
Once you apply, your district's chief appraiser decides whether your property qualifies. Expect a response within 90 days.
If the appraiser needs more information, they must tell you within 30 days, and you then have 30 days to respond. If you're denied, you have the right to protest the decision.
Because the five-year reverification took effect in 2023, some counties are still settling their process. Check with your county appraisal district and track your own renewal cycle.
Texas Homestead Exemption FAQs
1. What if I move to a new home?
You'll still be eligible to apply for the exemption. However, you may only get a portion of it, based on how much of the tax year remains once you're approved. If the previous owner had received an exemption, you may still get the full amount.
If the move is temporary, such as a work relocation, you can keep the exemption on your primary residence for up to two years. You just can't apply for an exemption on the second property. Military members may be away longer than two years and still keep it.
2. Can I have multiple homestead exemptions?
No. The homestead exemption is for your principal residence only, and you can't have two of those.
3. Does my eligibility change over time?
Although the new law requires verification every five years, your eligibility is unlikely to change. If you still check every box listed above, you'll qualify each time you apply.
4. What happens if I miss the application deadline?
Good news: you can still apply for up to two years after the filing deadline. When filing, check the box marking it a late application.
If you're approved and already paid your tax bill, you'll get the appropriate refund. If you haven't paid, the bill drops to reflect what you actually owe.
5. Can the exemption be revoked?
Yes. The Comptroller's office can ask for additional information to verify your property's qualifications at any time. If your circumstances change and the property no longer qualifies, the exemption could be revoked.
6. How much does it cost to file for a homestead exemption?
Filing yourself with your county appraisal district is free. We can also file it for you with no upfront cost.
7. Do I have to apply every year?
No. It's a one-time application, though the state now reverifies eligibility every five years.
8. Can I claim the exemption on an inherited home?
Yes. Heirs can qualify by providing documentation that shows their ownership interest in the property.
Ready to Take Advantage of This Savings Opportunity?
If you're a Texas homeowner who hasn't filed for the homestead exemption yet, there's no reason to wait. It's one of the easiest ways to lower what you owe the county and keep more money each year.
At Ownwell, we can handle the whole process for you, from filing at your local office to pursuing any refunds you're owed. In Texas, we can even retroactively file missed homestead exemptions up to two years back.
We'll also monitor your exemption in future years so you never lose the savings. And if we don't find you savings, you don't pay us anything. Ready to see your number? Start with a free savings estimate.
