What’s the Texas Homestead Exemption, and Do You Qualify?

Texans, take note: Your state has one of the nation’s most generous property tax exemptions. If you haven’t filed for the Texas homestead exemption yet, 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 they run high here. The state’s median effective property tax rate is 1.48%.

Texas is one of only a handful of states without a personal income tax. Cities and counties in the Lone Star State rely heavily on property tax revenue to pay for public services. The median Texas property tax bill is $3,441 — more than $1,000 above the national median — and owners are always looking for ways to reduce what they owe.

Enter the Texas homestead exemption. For qualifying Texas homeowners, this residential homestead exemption can significantly reduce your annual tax bill. In this article, we’ll cover everything you need to know about the exemption so you can start saving now.

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 your Texas primary residence.

• File Form 50-114 with your appraisal district by April 30, or we file and monitor it for you at no upfront cost.

What Is the Texas Homestead Exemption?

In short, the exemption excludes (“exempts”) part of your home’s value from taxation. As a result, your assessed value and annual tax bill are lower.

The general residence homestead exemption, set out in Section 11.13(b) of the Texas Tax Code, works through a few layered pieces:

1. Mandatory school district exemption: every Texas school district exempts part of a qualifying homestead’s value, up to 20 acres. Texas voters approved Senate Bill 4 (Proposition 13) in November 2025, raising it from $100,000 to $140,000, effective with the 2025 tax year.

2. Local option exemption: your city, county, or district may add an exemption from $5,000 up to 20% of your home’s value.

3. Farm-to-market or flood control exemption: counties that collect farm-to-market or flood control taxes add a $3,000 residence homestead exemption.

The general statewide exemption applies to all qualifying homeowners. 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

The senior exemption comes with an added benefit. Once an over-65 homeowner qualifies, the school-district portion of their annual tax bill is frozen at the dollar amount set in the year they first qualified, regardless of how their home’s value changes afterward. This tax ceiling is separate from the $60,000 additional exemption amount.

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:

1. It is your primary residence as of January 1st for the year you’re applying.

2. You have an ownership interest in the property, even if it’s partial.

3. 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. If you meet those three criteria, 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 the value of each exemption.

The simplest way to claim the Texas homestead exemption and lower your tax bill is to 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 may have been owed in prior years.

In 2025, we saved homeowners $23.9 million in missed exemption savings. To estimate your Texas exemption 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 $535,000 home in Travis County, using Travis County’s effective tax rate of 1.30%.

Your savings scale with your home’s value and your total exemptions. A higher-value home or added exemptions, like the 65+ benefit, increases your yearly savings.

Benefits of the Texas Homestead Exemption

Beyond the immediate cut to your taxable value, the exemption keeps saving you money year after year. Your annual property tax bill is figured from your assessed value, not your full market value.

Once your exemption is in place, the homestead protection cap — set by Texas Tax Code §23.23 — 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.

The cap does not apply in your first full year as a homestead-exempt owner. If you purchased in 2025, the 10% cap starts protecting your assessed value in 2027, the second January 1 you’ve held the exemption.

Until then, your assessed value can equal the full appraised value, which is why some recent buyers are surprised by their first full tax bill.

Even with the cap active, protesting your appraised value still pays off. A successful protest lowers the base from which next year’s 10% increase is calculated, and that compounding effect builds year over year. Our step-by-step Texas property tax protest guide explains exactly how to build a case.

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

1. Confirm Your Eligibility

   1. You must apply: the exemption is not automatic.

   2. Reverification: As of September 2023, the state reverifies your eligibility at least once every five years.

2. Download and Complete Form 50-114

   Complete the Residence Homestead Exemption Application, Form 50-114. You can find it, along with other forms, on the Texas Comptroller’s website. The same form covers the general exemption, the over-65 exemption, and the disability exemption, so check every box you qualify for.

   Required documents:

   1. A copy of your Texas driver’s license or state-issued ID. The address must match the property.

      If you have a co-owner, include their ID as well.

   2. For disability or veteran exemptions, additional agency documentation is required.

3. Submit to Your County Appraisal District (CAD)

   Submit the documents to your county appraisal district (CAD) 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.

   You can submit online, by mail, or in person. Most major CADs accept all three methods. Submit to your county’s CAD, not the tax office or the Comptroller.

4. Await Your Approval Notice

   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.

5. Verify Your Exemption Is Active After approval, confirm the exemption appears on your property record by searching your address on your county CAD’s website. For a step-by-step walkthrough, see our guide on checking your Texas homestead exemption status in Texas.

If you inherited the property, you’ll need extra documentation showing your ownership interest. The same applies to the disabled veteran and surviving spouse exemptions. Check with your appraisal district for the exact documents.

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.

Where to File: Texas Homestead Exemption by County

Texas has 254 counties, each with its own County Appraisal District (CAD). You file your exemption with the CAD in the county where your property is located, not with the state or the Texas Comptroller’s office.

For a full directory of every Texas CAD, use the Texas Comptroller’s county directory.

Local option exemptions (those set by cities, counties, and special districts) vary by jurisdiction and can stack on top of the statewide $140,000 school-district exemption. Check your county CAD for details.

How Ownwell Can Help With Your Texas Homestead Exemption

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.

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 for up to two years.

• Since we started offering our retroactive exemption service in Texas, we’ve saved 24,800 properties a total of $52.3 million in exemption refunds.

• In 2025, we helped 11,000 residential properties secure $23.9 million in missed exemption savings.

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.

If your assessed value is too high, we handle Texas property tax protests as well — Ownwell customers who protested saved an average of $774 per year.

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 applies only to your principal residence, and you can’t have two.

3. What happens to the 10% cap if I just bought my home?

The cap does not apply in your first qualifying year. If you purchased your home in 2025 and file for the exemption, the 10% appraisal cap begins protecting your assessed value starting January 1, 2027. Your first full tax year may reflect the home’s full appraised value, with no cap cushion.

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 to mark it as 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 will be reduced to reflect what you actually owe.

5. Can the exemption be revoked?

Yes. The Comptroller’s office can request information to verify your qualifications at any time. Under Senate Bill 1801 (effective September 2023), appraisal districts reverify eligibility at least every five years.

If you still meet all three criteria (you own the home, it’s your primary residence, and you haven’t claimed a homestead elsewhere), your exemption will renew automatically. If your circumstances change and the property no longer qualifies, we can remove the exemption.

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.

9. Can I file for a Texas homestead exemption online?

Yes. Most major Texas county appraisal districts, including those serving Harris, Dallas, Tarrant, Travis, and Bexar counties, accept online applications.

Check your county’s CAD website to see if an online portal is available. All CADs also accept filings by mail and in person.

10. How do I check if my Texas homestead exemption is active?

Visit your county appraisal district’s website and search your property by address or account number. Look for an “Exemptions” section on your property record, where an active homestead exemption should be listed.

For a full walkthrough, see our guide on checking your Texas homestead exemption status.