Fast facts: In 2025, the school-district general homestead exemption increased to $140,000 (from $100,000). The additional exemption for over-65 and disabled homeowners increased to $60,000 (from $10,000). With both passing, seniors/disabled will see a combined $200,000 reduction in taxable value for school taxes.
Important verification note: Since 2023, appraisal districts must verify homestead eligibility at least once every five years. If you ignore verification mailers, your exemption can be removed.
What is the Texas Homestead Exemption?
Texas homestead exemptions lower your property tax bill by reducing the taxable value of your home. Taxable value is one of the three possible valuations:
Market value is the amount the county appraisal district (CAD) feels your home would sell for based on the current market.
Appraised value is the value the CAD assigns to your home for tax purposes.
Taxable value is the number the tax assessor uses when calculating your tax bill.
The CAD uses a simple formula to determine your property's taxable value:
Appraised Value - Exemption Amount = Taxable Value
Question | Detail | Action |
|---|---|---|
What is it? | A reduction in a home's appraised value, which lowers school and local property taxes | Check your home's appraised value using your county's property search tool. |
Who qualifies? | Anyone who owns and occupies a home as their primary residence as of January 1st | Review the state's eligibility requirements for homestead exemptions. |
How much can I save? | A minimum reduction of $140,000 for school taxes, plus local options | Review possible exemptions, such as the over-65 and disability exemptions. |
Where do I apply? | With your local County Appraisal District (CAD) | Visit your county's CAD page. |
Benefits of the Texas Homestead Exemption
With an average bill of $3,971, Texas property taxes are higher than most states', and homeownership exemptions are essential for alleviating some of the financial strains of homeownership. The Texas homestead exemption offers these specific advantages to homeowners:
Reduced tax burdens, so you pay less in property taxes
An annual appraisal cap, preventing your home's appraised value from increasing more than 10% each year
Protection from housing market hikes, allowing for gradual tax increases
Enhanced relief for certain groups, including people with disabilities or those over 65
Transferability between residences for homeowners age 65 or older
What's New for Homestead Exemptions in 2025?
The Texas Legislature periodically updates the homestead exemption to provide greater relief to homeowners. During the 89th Texas Legislative session, they voted to adjust the exemption for general residents, seniors, and people with disabilities.
Voters approved these constitutional amendments during the November 4, 2025, election:
Exemption Type | 2023–2024 | 2025 | Change |
|---|---|---|---|
General Homestead (school district) (Senate Joint Resolution (SJR) 2/Proposition 13) | $100,000 | $140,000 | +$40,000 |
Over-65 or Disabled (additional school) (SJR 85/Proposition 11) | $10,000 | $60,000 | +$50,000 |
Combined Over-65 or Disabled + General | $110,000 | $200,000 | +$90,000 |
Who Qualifies for the Texas Homestead Exemption?
To be eligible for Texas homestead exemptions in 2025, you have to meet certain state requirements. These rules differ based on which exemption you want to claim, so ensure you review them carefully before submitting your application.
General Residents
The requirements for the general Texas homestead exemption are broad. To qualify, you must meet these criteria:
You own the property and it’s your primary residence (no other homestead claimed in or out of state).
The residence sits on up to 20 acres of land used for residential purposes.
You file once with your CAD and respond to any 5-year verification requests
New Owner Proration
If you move in after January 1, you can prorate the homestead for the part of the year you qualify (if the prior owner didn’t already claim it for that year).
Additional Exemptions
Depending on your circumstances, you may be eligible for additional property tax exemptions in Texas, such as:
Over-65 Exemption for people who are 65 or older
Disabled Persons Exemption for people who have a condition making them eligible for disability benefits
Note, you cannot combine with the senior exemption
Disabled Veterans Exemption for people who have a service-related disability
Surviving Spouses Exemptions for spouses of disabled veterans and first responders killed in the line of duty
You can apply for these exemptions and the general homestead exemption to increase your savings.
How Much Can You Save? (2025 Examples)
Below are illustrative school-district-only examples. Local-option exemptions (if any) would further increase savings.
Example A – General Homestead only
Appraised value: $350,000
Exemptions: $140,000 (assumed 2025)
Taxable for school taxes: $210,000
Example B – Over-65 or Disabled
Appraised value: $350,000
Exemptions: $140,000 + $60,000 = $200,000
Taxable for school taxes: $150,000
Your actual tax bill also depends on adopted tax rates in your district and any local options.
You may also be eligible for local exemptions in your CAD. For instance, Texas law requires counties collecting farm-to-market or flood control taxes to exempt $3,000 from your taxable value.
The 10% Appraisal Cap (Why it Matters)
Once you qualify for a homestead, your appraised value for tax purposes can’t increase by more than 10% per year, plus the value of new improvements. This cap softens market spikes, so your taxes don’t rise as quickly as market values.
Note, Proposition 4 in 2023 also added caps for specific non-homestead properties. This temporary "circuit breaker" limited the appraisal increase for qualifying commercial, mineral, and non-homestead residential properties valued at $5 million or less to 20% per year for tax years 2024, 2025, and 2026.
Renovation tip: Big improvements (additions, pools, extensive remodels) are new value and aren’t protected by the cap. Consider timing upgrades after the cap is in place.
How Do You Apply for the Texas Homestead Exemption?
You can apply for a Texas homestead exemption online, in person, or through the mail.
Filing opens on January 1 and must be completed by April 30 for the current tax year. Late filing is allowed for up to two years after the delinquency date. You should file with your CAD, not the Comptroller.
1. File a Residence Homestead Exemption Application
Start by completing and submitting your application using Texas Comptroller Form 50-114.
Select the exemptions you qualify for (general, over-65, disabled, veteran, etc. And ensure you provide accurate information, such as your property address and when you acquired the property.
2. Gather Documents
Along with your application, you'll also need to submit supporting documents, including:
Texas driver's license or ID with matching address
Proof of residency, such as a utility bill or bank statement
For disability: SSA documentation showing disability status.
3. Submit to Your CAD
To avoid issues with your exemption, ensure you submit your application to the correct place. Your local CAD — not the tax office — will accept and review your documents.
You can submit copies of these documents online (if available), by mail, or in person.
4. Meet the Deadline
The best practice for new homeowners is to apply for their exemptions when they purchase a home.
Applying on time will help ensure the exemption goes into effect for the current tax year. However, if you miss the deadline, you can apply retroactively for up to two years.
5. Verify Every Five Years
The CAD is proactive about confirming residency for homestead exemptions, so be sure to read and respond to any mail or notices they send you regarding reverification.
Failing to respond could result in automatic removal of your exemption, leading to a significant increase in your taxes for the year.
Common Mistakes And How to Avoid Them
License address doesn’t match the property: Update your Texas ID to the homestead address before filing.
Missing the deadline: File by April 30 to apply for the current year (you can still file late)
Ignoring the five-year verification mail: Leads to exemption removal. Add CAD mailers to your to-do list every spring.
Claiming two homesteads: Not allowed (in or out of state).
Not checking local options: You might be leaving extra savings on the table.
What if Your Application is Denied?
You can file a protest with the Appraisal Review Board (ARB). Bring ownership/residency proof and any required documents (e.g., SSA disability letter). Professional help (appeals + exemptions) can keep this on track.
Texas Homestead Exemption FAQs
When should I file for a homestead exemption?
The deadline for homestead exemption applications is generally April 30th. Check with your local CAD to confirm the date for the current tax year.
What happens after your homestead exemption is approved?
Texas law only requires the CAD to send a written notice about your homestead exemption if they deny or modify your application. You may receive a written statement of approval, or you can check your homestead exemption status by contacting your CAD or conducting an online property search on their website.
When does my homestead exemption take effect?
If the CAD approves your homestead exemption, it will take effect on January 1st of the present tax year. This is true even if you receive your approval several months into the year.
What qualifies as a homestead?
Any home or other residential structure on up to 20 acres of residential land qualifies as a homestead. To receive the exemption, the property must also be your primary residence, and you must have at least partial ownership.
What happens if I miss the application deadline?
If you miss the deadline, you can submit a late application. Your CAD will accept retroactive applications for two years after the initial deadline. Ownwell can help you retroactively apply for homestead exemptions.
Secure Your Tax Savings With Professional Help
Many homeowners, particularly first-time buyers, don't fully understand the importance of protesting your taxes and applying for exemptions to lower your bill.
Texas homestead exemptions and property tax protests can put money back in your pocket.
Tired of costly property taxes? Discover and apply for exemptions with Ownwell's help. Get advice on deadlines and verifying homestead exemptions in Texas, plus protesting unfair property tax appraisals.
Pay less, save more, and reduce your property taxes with Ownwell.
