Texas Homestead Exemption 2026: How to Apply & Save Up to $140,000
The Texas homestead exemption is one of the most valuable tax benefits available to Texas homeowners. Thanks to Proposition 4 (passed in November 2023), the school district homestead exemption increased from $40,000 to $100,000, meaning eligible homeowners can now exempt up to $140,000 from their home's taxable value for school taxes alone.
This guide explains how the Texas homestead exemption works in 2026, who qualifies, how much you can save, and how to apply.
Texas Homestead Exemption Amounts (2026)
Here are the current exemption amounts available to Texas homeowners:
| Exemption Type | School Districts | Cities/Counties |
|---|---|---|
| General Homestead | $100,000 | Up to 20% of value (min $5,000) |
| Over 65 or Disabled | Additional $10,000 | At least $3,000 (optional) |
| Disabled Veteran (10-100%) | $5,000 - $12,000+ | Varies |
| 100% Disabled Veteran | 100% exemption | 100% exemption |
Maximum school district exemption for seniors/disabled: $110,000 ($100,000 general + $10,000 additional)
What Changed with Proposition 4?
In November 2023, Texas voters approved Proposition 4, which:
- Increased the school district homestead exemption from $40,000 to $100,000
- Raised the 10% appraisal cap to apply to all homesteads (previously only applied after the first year)
- Provided approximately $1,000+ in annual savings for the average Texas homeowner
This is the largest property tax reduction in Texas history.
How Much Can You Save?
The Texas homestead exemption reduces your taxable value, not your tax bill directly. Your savings depend on local tax rates.
Example calculation:
- Home market value: $400,000
- School district tax rate: 1.0%
- Without exemption: $400,000 × 1.0% = $4,000 in school taxes
- With $100,000 exemption: $300,000 × 1.0% = $3,000 in school taxes
- Annual savings: $1,000 (school taxes only)
Additional savings come from city, county, and special district exemptions where offered.
Who Qualifies for a Texas Homestead Exemption?
To qualify for a residential homestead exemption in Texas, you must:
- Own the property — Your name must be on the deed (not an LLC or corporation)
- Occupy it as your primary residence — Live there more than half the year
- Not claim a homestead exemption elsewhere — Only one homestead per person/couple
- Be a Texas resident — The home must be in Texas
Documentation That May Be Required
- Texas driver's license or ID with the property address
- Vehicle registration showing the property address
- Voter registration at the property address
- Utility bills in your name at the property
How to Apply for a Texas Homestead Exemption in 2026
Follow these steps to apply for your homestead exemption:
Step 1: Determine Your Deadline
The deadline to apply for a homestead exemption is typically April 30 of the tax year. However, you can file a late application up to two years after the deadline and receive the exemption for that year.
For 2026 property taxes: Apply by April 30, 2026 (or file late by April 30, 2028).
Step 2: Get the Application Form
Download Form 50-114 (Application for Residential Homestead Exemption) from:
- Your county appraisal district website
- The Texas Comptroller's website
Step 3: Complete the Application
The form requires:
- Property information (address, legal description, account number)
- Owner information
- Affirmation that the property is your primary residence
- Information about any additional exemptions (over 65, disabled, veteran)
Step 4: Submit to Your County Appraisal District
Submit the completed application to your county's appraisal district (not the tax assessor-collector). Methods vary by county:
- Online — Many counties accept electronic applications
- Mail — Send to your county appraisal district
- In person — Drop off at the appraisal district office
Step 5: Receive Confirmation
The appraisal district will review your application and notify you of approval or denial. Once approved, the exemption automatically renews each year unless your eligibility changes.
Types of Texas Homestead Exemptions
General Residential Homestead Exemption
Available to all homeowners who use the property as their primary residence.
- School districts: $100,000 exemption (mandatory)
- Cities and counties: Up to 20% of home value, minimum $5,000 (optional, varies by jurisdiction)
Over 65 Exemption
Available to homeowners age 65 or older.
- Additional $10,000 exemption from school district taxes
- School tax ceiling — Your school taxes are frozen at the amount due the year you turn 65
- Counties and cities may offer additional exemptions (minimum $3,000)
Important: You must apply the year you turn 65 to receive the tax ceiling benefit.
Disabled Person Exemption
Available to homeowners who are disabled as defined by federal law.
- Same benefits as the over-65 exemption
- Cannot be combined with the over-65 exemption (choose one)
Disabled Veteran Exemption
Available to veterans with a VA disability rating.
| Disability Rating | Exemption Amount |
|---|---|
| 10-29% | $5,000 |
| 30-49% | $7,500 |
| 50-69% | $10,000 |
| 70-100% | $12,000 |
| 100% (unemployable) | 100% exemption |
Surviving spouses may qualify to continue the exemption.
Surviving Spouse of First Responder
Surviving spouses of first responders killed in the line of duty may qualify for a 100% homestead exemption.
Common Questions About Texas Homestead Exemptions
Do I need to reapply every year?
No. Once approved, your homestead exemption automatically renews each year. You only need to reapply if the appraisal district sends you a new application or your eligibility changes.
Can I get a homestead exemption on a second home?
No. The homestead exemption only applies to your primary residence. You cannot claim it on vacation homes, rental properties, or investment properties.
What if I bought my home mid-year?
You can apply for the homestead exemption immediately after purchasing. If approved before January 1, you'll receive the exemption for that tax year. If approved after January 1, it takes effect the following year.
Can I have a homestead exemption if my home is in an LLC?
Generally, no. The property must be owned by an individual, not a business entity. Some exceptions exist for certain trusts.
What happens to my exemption if I move?
Your exemption ends when you stop using the property as your primary residence. You must apply for a new exemption at your new home.
Homestead Exemption vs. Property Tax Protest
The homestead exemption and property tax protests are two different ways to reduce your property taxes, and you can use both.
| Homestead Exemption | Property Tax Protest | |
|---|---|---|
| What it does | Reduces taxable value by fixed amount | Reduces appraised value |
| How often | Apply once, renews automatically | File annually |
| Who benefits | Only primary residences | All property types |
| Deadline | April 30 | May 15 (or 30 days after notice) |
Best strategy: Apply for all exemptions you qualify for, then protest your appraised value annually. The exemption is applied to your (hopefully reduced) appraised value.
Don't Leave Money on the Table
If you own a home in Texas and haven't applied for your homestead exemption, you could be overpaying by $1,000 or more per year. The application is free and only takes a few minutes.
And once you have your exemption, consider protesting your property tax appraisal to save even more. Ballard Property Tax Protest helps Texas homeowners reduce their assessed values through evidence-based protests.
No reduction, no fee.