Property taxes are one of the biggest and fastest-rising costs of homeownership in Texas. To help ease that burden, lawmakers have put forward Texas Proposition 13, a constitutional amendment that would increase the general homestead exemption for school district property taxes from $100,000 to $140,000.
Here's how Texas homestead exemptions like Proposition 13 work, who qualifies, and what it could mean for your 2025 property tax bill.
What You Need to Know About Prop 13
What it is: A vote to increase the standard school tax homestead exemption from $100,000 to $140,000.
When to Vote: The constitutional amendment is on the ballot on Tuesday, November 4, 2025.
Who it Helps: All Texas homeowners with a homestead exemption would save money.
If it Passes: The new, higher exemption will apply retroactively to your 2025 tax bill. If it fails, the exemption stays at $100,000.
What The New Homestead Exemption Includes
If voters approve Proposition 13, here's how the numbers will change for Texas homeowners:
General exemption increase:
The first $140,000 of your home's taxable value (up from $100,000) will be exempt from school property taxes. This could mean saving hundreds of dollars per year.
Added relief for seniors and disabled homeowners:
Seniors and disabled Texans currently have a Texas over-65 exemption, which provides an additional $10,000 reduction in their property taxes, bringing their total to $110,000. However, Proposition 11 (SJR 85) is also on the November 2025 ballot. Here's how the different scenarios could work out:
Outcome | Base Homestead Exemption | Over-65/Disabled Add-On | Total Exempt |
|---|---|---|---|
Neither passes | $100,000 | $10,000 | $110,000 (homeowner) |
Prop 13 passes only | $140,000 | $10,000 | $150,000 (homeowner) |
Prop 11 passes only | $100,000 | $60,000 | $160,000 (senior/disabled homeowner) |
Both pass | $140,000 | $60,000 | $200,000 (senior/disabled homeowner) |
Note, these exemptions apply only to school district property taxes, which are typically the largest portion of a property tax bill in Texas. They don't affect county or city taxes. Furthermore, you cannot combine the senior and disabled exemptions; it's one or the other.
Furthermore, homeowners aged 65 or older, or those with a disability, also receive a "ceiling" or "freeze" on their school taxes. This means the actual dollar amount they pay in school taxes is frozen in the year they qualify. Their school tax bill will not increase, even if their home value or the tax rate rises. Thus, the senior homestead exemption of either $160,000 or $200,000 is subtracted from your home's assessed value the year you turn 65.
How Much Homeowners Could Save
According to state estimates, the jump from a $100,000 to a $140,000 exemption could save the average Texas homeowner around $350 to $500 per year on school district property taxes, depending on the local tax rate.
For homeowners who are 65 or older or disabled, the combined exemption could reach $200,000. In practice, this translates to an average annual savings of $900 or more. In some districts, the larger exemption could mean seniors with modest home values don't have to pay school property taxes at all that year.
Here are a few examples of how much homeowners can save:
Scenario | Home Value | School Tax Rate | Old Rule ($100K Exemption) | New Rule Under Prop 13 & 11 ($140K / $200K) | Annual Savings |
|---|---|---|---|---|---|
Typical homeowner | $350,000 | $1.00 | ($350,000 – $100,000) ÷ 100 × $1.00 = $2,500 | ($350,000 – $140,000) ÷ 100 × $1.00 = $2,100 | $400 |
Senior/disabled homeowner | $320,000 | $1.05 | ($320,000 – $100,000 – $60,000) ÷ 100 × $1.05 = $2,310 | ($320,000 – $200,000) ÷ 100 × $1.05 = $1,260 | $1,050 (+ a new, lower tax ceiling) |
Typical homeowner with a medium-high-value home | $500,000 | $1.20 | ($500,000 – $100,000) ÷ 100 × $1.20 = $4,800 | ($500,000 – $140,000) ÷ 100 × $1.20 = $4,320 | $480 |
Typical homeowner with a high-value home | $1,000,000 | $1.25 | ($1,000,000 – $100,000) ÷ 100 × $1.25 = $11,250 | ($1,000,000 – $140,000) ÷ 100 × $1.25 = $10,750 | $500 |
For more information on how much property tax is in Texas and how much you can save on property taxes, be sure to check out Ownwell's resources for homeowners. You can also check out our property tax insights.
Application And Verification Process
Whether Prop 13 passes in November 2025 or not, every homeowner should have a homestead exemption in place. Texas's increased homestead exemption already lowers school property taxes by at least $100,000 in taxable value, and if voters approve Prop 13, you'll save even more.
Follow these steps to apply for a homestead exemption in Texas in 2025:
Check your eligibility: To qualify for a homestead property tax exemption, the home must be your primary residence.
Check your homestead exemption status in Texas: If you already filed in the past, check your homestead exemption status through your county appraisal district (CAD) before submitting a new application.
Apply through your CAD: Most Texas CADs have online portals, but some smaller and rural ones only accept PDFs or in-person filing.
If you have an online portal, enter your property address or CAD account number and confirm ownership details.
If your CAD doesn’t have an online portal, fill in the Texas Comptroller of Public Account’s Application for Residence Homestead Exemption (Form 50-114), and mail it or drop it off at your local CAD.
Start the online application: If you're filing through the online portal, click on "File Homestead Exemption" once you've confirmed ownership details.
Most CADs will then request a scanned copy or photo of your driver's license or state ID. Double-check the exemption type (homestead) and property details, then submit and save the confirmation page as a PDF for your records.
Track your application: Most CAD online portals allow you to check your application status online.
Approval can take several weeks — sometimes up to 90 days, depending on your county and the time of year.
After getting an exemption approval, you'll need to watch for a verification notice from your appraisal district. From 2023, appraisal districts must verify homestead exemptions at least once every five years. If you don't respond to the notice, you may lose your exemption and pay more in taxes.
Staying on top of these deadlines can be challenging, especially when you have numerous other tasks to attend to. Fortunately, Ownwell can help monitor your exemption status, respond to verification notices, and make sure you don't miss out on savings.
Important deadline: Across Texas, the deadline to file for an exemption to apply to the current tax year is April 30.
If Passed, When Will the Homestead Exemption Go Into Effect?
If Prop 13 passes after the November 4, 2025, vote, the $140,000 exemption will apply retroactively to the 2025 tax year.
That means:
The new exemptions will apply to your January 1, 2025 property values.
Appraisal districts will recalculate your taxable value using the higher exemption amount.
Tax bills sent in October 2026 (for the 2025 tax year) will already reflect the new, lower taxable value.
If Prop 11 or 13 do not pass, the exemption will remain at $100,000 for homeowners, and $110,000 for seniors or homeowners with disabilities.
Whether Prop 13 passes or not, you need to maintain your homestead exemption actively. Every time you move or fail to respond to a verification notice (sent every five years), you risk losing your exemption and forfeiting property tax savings.
Is There a Property Tax Exemption for Businesses?
Proposition 13 has no bearing on commercial properties or businesses. However, Proposition 9 (HJR 1) would also raise the business tangible personal property exemption to $125,000. This means that companies with equipment or inventory valued below that threshold would no longer be required to pay property taxes on it. This increase is especially beneficial for small retailers, service providers, and light manufacturers.
Filing a homestead exemption and staying on top of property tax rules isn't always simple, especially when laws are constantly changing. Here are some tools and services that can help you keep more money in your pocket:
Official forms and information:See the Texas Comptroller’s property tax exemptions page and the official Application for Residence Homestead Exemption (Form 50-114)
What's the Impact of These Property Tax Exemptions on Local Communities?
For local governments, though, this change comes with trade-offs. Although the state has promised to replace any revenue school districts lose due to the higher exemptions, cities and counties don't receive the same support. If they collect less from business property taxes, they may face tighter budgets.
They could eventually respond by cutting services or shifting a greater portion of the tax burden onto other property owners. Monitor property tax trends and news about reasons to appeal property taxes to learn more.
Texas Homestead Exemption FAQs
1. Is voter approval required for these changes?
Yes. Because this is a constitutional amendment, Texas voters must approve it on November 4, 2025.
2. How much could homeowners expect to save on their tax bill?
On average, homeowners can expect to save $350 to $500 per year for most households, and about $900 for seniors or Texans with disabilities. Actual savings depend on the home's value and the school district's rates.
3. What is the Over-65 tax ceiling, and how does Prop 13 affect it?
The tax ceiling "freezes" the dollar amount of school taxes a senior pays. If Prop 13 passes, a qualifying senior would not only receive the higher $150,000 exemption. If Prop 11 and 13 pass, the total exemption amount rises to $200,000. In both cases, their school tax bill would also be recalculated at that lower amount, and that new, lower amount would become their permanent tax ceiling from then on.
Never Miss a Deadline or a Dollar of Savings
Keeping track of Texas property tax laws, deadlines, and verification notices can feel like a full-time job. Missing a single deadline could cost you thousands in lost savings. Ownwell’s suite of services ensures you're always paying the absolute minimum.
Exemption Monitoring & Filing: We ensure your homestead exemption is always active and handle any verification requests from the county. Did you forget to file in a previous year? We can file for retroactive exemptions to claim the savings you're owed from up to two years prior.
Expert Property Tax Protests: If your property's assessed value is too high, our team of local experts will build a data-driven case and manage your property tax protest from start to finish. You only pay if we win you savings.
Stop overpaying and start saving. Let Ownwell handle the hassle of property taxes so you can have peace of mind.
