If you own a home in Texas and live in it as your primary residence, the homestead exemption is one of the most valuable tax benefits available to you. It reduces the taxable value of your property, which directly lowers your annual property tax bill.
In November 2025, Texas voters overwhelmingly approved Proposition 13, raising the school district homestead exemption from $100,000 to $140,000. Combined with other exemptions for seniors, disabled homeowners, and veterans, the total tax savings can be substantial.
This guide explains who qualifies, how much you can save, and exactly how to file — whether you're in Harris County, Fort Bend County, or anywhere else in Texas.
What Is a Homestead Exemption?
A homestead exemption removes a portion of your home's appraised value from taxation. Instead of paying taxes on the full value of your property, you pay taxes on a reduced amount. The exemption doesn't change your property's appraised value — it reduces the taxable value used to calculate your bill.
For example, if your home is appraised at $350,000 and you have a $140,000 school district homestead exemption, you only pay school taxes on $210,000 of value. At a typical school district tax rate, that's hundreds of dollars in annual savings.
Who Qualifies for a Homestead Exemption?
To qualify for the general residence homestead exemption in Texas, you must meet three requirements:
- Ownership interest: You must own the property (or have a qualifying ownership interest such as a trust or life estate).
- Primary residence: You must occupy the home as your principal residence as of January 1st of the tax year.
- No other homestead: You cannot claim a homestead exemption on another property in Texas or any other state.
The exemption is available to all homeowners regardless of age, income, or how long you've owned the home. You must have a valid Texas driver's license or state-issued ID that matches your homestead address.
Homestead Exemption Amounts for 2026
Following the passage of Proposition 13 in November 2025, here are the current exemption amounts available to Texas homeowners:
General Homestead Exemption (All Homeowners)
| Taxing Entity | Exemption Amount |
|---|---|
| School Districts | $140,000 (mandatory — increased from $100,000 by Prop 13) |
| Counties | Up to 20% of appraised value (optional, varies by county) |
| Cities | Up to 20% of appraised value (optional, varies by city) |
| Special Districts (MUDs, etc.) | Varies — some offer optional exemptions |
Harris County provides a 20% optional homestead exemption (minimum $5,000) for all homeowners in the county, on top of the school district exemption.
Over-65 and Disabled Persons
If you are 65 or older, or meet the Social Security Administration's definition of disabled, you qualify for additional exemptions:
- School district: An additional $60,000 exemption (up from $10,000, per Proposition 11 passed in 2025), bringing the total school district exemption to $200,000.
- Tax ceiling (freeze): School district taxes are frozen at the amount you paid in the year you turned 65 or became disabled. Your school taxes will never increase unless you add improvements to the home.
- County and city: Many local entities offer an additional $3,000 to $10,000+ exemption for over-65 or disabled homeowners. Check with your county appraisal district.
A surviving spouse age 55 or older may also qualify for the deceased spouse's over-65 exemption if the deceased qualified in the year they passed.
The 10% Homestead Cap: How It Protects You
One of the most important — and often misunderstood — benefits of the homestead exemption is the 10% annual appraisal cap. Once you have an active homestead exemption, your home's assessed value (the value used to calculate taxes) cannot increase by more than 10% per year, regardless of how much the market value increases.
This means that even if your home's market value jumps 25% in a hot year, the most your taxable value can increase is 10%. The cap creates a growing gap between market value and assessed value over time, which can represent significant tax savings in appreciating markets like Houston.
Important: The 10% cap only kicks in after the second year of your homestead exemption. In the first year, your home is assessed at full market value. File your exemption as soon as possible to start the clock.
How to File Your Homestead Exemption: Step by Step
Filing is free and straightforward. Here's how to do it:
Step 1: Gather Your Documents
- A copy of your Texas driver's license or Texas-issued personal identification card showing your homestead address
- Your property account number (found on your Notice of Appraised Value or the appraisal district's website)
- For over-65: proof of age (your driver's license is usually sufficient)
- For disabled persons: Social Security disability determination letter
- For disabled veterans: VA disability rating letter
Step 2: Complete the Application
The official form is the Application for Residence Homestead Exemption (Form 50-114), available from the Texas Comptroller's website or your county appraisal district. Most appraisal districts now offer online filing.
Step 3: Submit to Your County Appraisal District
You can file in three ways:
- Online: Most county appraisal districts (including HCAD) accept online applications with a scanned copy of your ID.
- Mobile app: Harris County offers a mobile app for filing with a photo of your driver's license.
- Mail or in person: Print Form 50-114, attach a copy of your ID, and mail it to your county appraisal district office.
Step 4: Verify It Was Applied
After filing, check your property record on your county appraisal district's website to confirm the exemption has been applied. It should appear on your next Notice of Appraised Value. If it's missing, contact the appraisal district directly.
Where to File in the Houston Metro Area
| County | Appraisal District | Website |
|---|---|---|
| Harris | Harris Central Appraisal District (HCAD) | hcad.org |
| Fort Bend | Fort Bend Central Appraisal District (FBCAD) | fbcad.org |
| Montgomery | Montgomery Central Appraisal District (MCAD) | mcad-tx.org |
| Brazoria | Brazoria County Appraisal District (BCAD) | brazoriacad.org |
| Galveston | Galveston Central Appraisal District (GCAD) | galvestoncad.org |
Key Deadlines
- Regular filing deadline: April 30th of the tax year for which you're claiming the exemption.
- Late filing: Texas allows late homestead exemption applications for up to two years after the deadline. If you missed a year, you may still be able to file retroactively.
- New homeowners: File as soon as you close on your home. You don't need to wait for your first Notice of Appraised Value.
If you purchased your home last year and haven't filed yet, do it now. Every month without a homestead exemption is money left on the table — and delays the start of your 10% appraisal cap.
Common Mistakes to Avoid
- 1.
Not filing at all
The exemption is not automatic. You must apply. Many homeowners — especially first-time buyers — don't realize this and overpay for years.
- 2.
Mismatched address on your ID
Your Texas driver's license must show the same address as the property. If you recently moved, update your license before filing.
- 3.
Thinking the exemption replaces a protest
The homestead exemption reduces your taxable value. A property tax protest reduces your appraised value. They work together — you should do both.
- 4.
Not claiming additional exemptions you qualify for
If you turned 65, became disabled, or are a veteran, you may qualify for thousands of dollars in additional exemptions. Review your eligibility each year.
Homestead Exemption vs. Property Tax Protest: What's the Difference?
These are two separate tools that both reduce your tax bill, and smart homeowners use both:
| Homestead Exemption | Property Tax Protest | |
|---|---|---|
| What it does | Reduces taxable value by a fixed amount | Reduces the appraised value itself |
| How often | File once, applies every year | Must protest annually |
| Who does it | You file the application | You or a property tax consultant |
| Cost | Free | Free if DIY, or contingency fee with a consultant |
Filing your homestead exemption is the first step. Protesting your appraised value is the second. Together, they can reduce your property tax bill by thousands of dollars per year.
Already have your homestead exemption? The next step is protesting your value.
Rainbolt & Co helps Houston-area homeowners reduce their appraised values — no upfront costs, and you only pay if we save you money.
Frequently Asked Questions
Do I need to re-file my homestead exemption every year?
No. Once approved, your homestead exemption remains in effect as long as you own and occupy the home. You do not need to reapply annually. However, you will need to file a new application if you move to a new home or if there is a change in the ownership name on the property (for example, adding or removing a spouse from the deed).
I bought my home last year and forgot to file. Can I still get the exemption?
Yes. Texas allows late homestead exemption filings for up to two years after the original deadline. File as soon as possible to capture retroactive savings.
Does the homestead exemption apply to rental properties or second homes?
No. The homestead exemption is only available for your primary residence. Investment properties, vacation homes, and rental properties do not qualify.
My spouse and I both own the home. Do we each file separately?
It depends on how the property is titled. If you and your spouse own the home together as one ownership entity (e.g., “Smith John & Sara”), only one application is needed. However, if each spouse holds a separate ownership interest (e.g., each owns 50% individually), then each owner would need to file their own homestead exemption application.
Will the new $140,000 exemption show up on my 2025 tax bill?
Yes. Proposition 13 is retroactive to January 1, 2025. If you already had a homestead exemption on file, the increase from $100,000 to $140,000 should be applied automatically by your appraisal district.
Lower Your Property Taxes in Two Steps
Step one: file your homestead exemption. Step two: let Rainbolt & Co protest your appraised value. Together, these are the two most effective ways to reduce your Texas property tax bill.
Call us directly at (713) 338-2308
Related Guide
How to Appeal Your Property Taxes in Texas →A step-by-step guide to the protest process, from filing your protest to the ARB hearing and beyond.