Texas Property Tax Relief: Every Program and Option Available to Homeowners

Texas Property Tax Relief: Every Program and Option Available to Homeowners

Texas has some of the highest property taxes in the country — but it also has one of the most generous sets of relief programs available to homeowners. Between exemptions, appraisal caps, tax freezes, deferrals, payment plans, and the right to protest, there are multiple ways to reduce what you owe.

The problem is that many homeowners don't know about all of them, or they miss the deadlines to apply. This guide covers every property tax relief option available to Texas homeowners in 2026 so you can make sure you're not leaving money on the table.

Quick Reference: Texas Property Tax Relief Programs

Homestead Exemption ($140,000)

The homestead exemption is the single most valuable tax relief tool for Texas homeowners. As of 2026, it removes $140,000 of your home's appraised value from school district property taxes.

This exemption was increased significantly in recent years:

• Before 2023: $25,000
• 2023 (Proposition 4): Increased to $100,000
• 2026 (Proposition 13): Increased to $140,000

Texas voters overwhelmingly approved the latest increase in November 2025 with 79% support. The state estimates the average homeowner saves about $1,700 per year from the homestead exemption alone.

How to Apply

File Form 50-114 (Application for Residence Homestead Exemption) with your county appraisal district. You can apply at any time during the year, but the deadline for the current tax year is April 30. You only need to file once — the exemption stays in place until you sell or move.

What It Unlocks

The homestead exemption does more than reduce your taxable value. It also activates the 10% appraisal cap (starting the year after you qualify), which limits how much your appraised value can increase each year. Without the homestead exemption, your home has no cap protection at all.

For a deeper look, see our guide: Texas Homestead Exemption 2026: Save $140K.

Over-65 and Disabled Person Exemption ($60,000)

If you're 65 or older or receive federal disability benefits, you qualify for an additional exemption on top of the standard homestead exemption.

As of 2026, this additional exemption is $60,000 for school district taxes — bringing the combined total to $200,000 off your school tax bill.

This was increased from $10,000 to $60,000 by Senate Bill 23, passed in 2025 and approved by voters as Proposition 11 (77% approval). The state estimates this saves qualifying homeowners an additional $454 per year on average.

Combined Savings for Seniors

A homeowner aged 65 or older with both exemptions in place receives:

• $140,000 homestead exemption (school taxes)
• $60,000 additional over-65 exemption (school taxes)
• Total: $200,000 removed from school district taxable value

Many local taxing units (cities, counties, special districts) offer their own additional exemptions for seniors and disabled homeowners on top of the state-mandated amounts.

For the full breakdown, see: Texas Property Tax Exemptions for Seniors 65+.

School Tax Freeze (Tax Ceiling)

One of the most powerful — and least understood — protections for Texas seniors and disabled homeowners is the school tax ceiling.

Once you qualify for the over-65 or disabled person exemption, your school district taxes are frozen at the dollar amount you owe that year. Even if your home's value increases, your school tax bill will never go above that ceiling.

Key Details

• The ceiling is set the year you turn 65 (or the year you qualify for the disability exemption)
• It applies only to school district taxes — city, county, and other taxing units are not frozen unless they individually adopt a freeze
• The ceiling can decrease if your appraised value drops, but it will never increase above the original amount
• If your spouse was receiving the over-65 freeze and passes away, you can continue receiving it if you're age 55 or older

Transferring the Ceiling to a New Home

If you move to a different home in Texas, you can transfer the tax ceiling as a percentage. If you were paying 40% of the school taxes that would otherwise be owed on your old home, your new ceiling will be set at 40% of the school taxes on your new home.

To transfer, request a ceiling certificate from the appraisal district for your former home and submit it to the appraisal district for your new home.

The 10% Appraisal Cap

Once you have a homestead exemption in place, the 10% appraisal cap kicks in the following year. This limits the annual increase in your home's appraised value (for tax purposes) to no more than 10% — regardless of how much the market value actually increased.

Over time, this creates "cap savings" — the difference between your home's market value and its lower capped value. In fast-appreciating markets across Texas, these savings can amount to tens of thousands of dollars.

Important Notes

• The cap only applies to the appraised value, not the market value on the district's records
• New improvements (additions, renovations) are added at full value on top of the cap
• The cap resets if you sell or move — you start over on a new home
• Texas does not have portability like Florida — you cannot transfer cap savings to a new property

For more on how appraised and market values work, see: Market Value vs Appraised Value: Texas Guide.

Property Tax Protest

Every property owner in Texas has the right to protest their appraised value every year. This is one of the most direct forms of property tax relief — if you successfully lower your appraised value, your tax bill goes down.

Why It Works

Appraisal districts use mass appraisal techniques that don't account for your home's individual condition, needed repairs, or specific characteristics. Many homes are overvalued as a result. A successful protest typically results in a 5% to 20% reduction in appraised value.

Key Facts

• It's free to file a protest
• The deadline is May 15 or 30 days after receiving your appraisal notice (whichever is later)
• There's no risk — your value cannot be raised as a result of protesting
• You can protest every year, and you should — values are reassessed annually

How to Protest

1. Review your appraisal notice for errors
2. Gather comparable sales, photos of property condition, and repair estimates
3. File Form 50-132 (Notice of Protest) with your county appraisal district
4. Attend the informal hearing and/or formal ARB hearing

For a step-by-step walkthrough, see: How to File a Texas Property Tax Protest (2026 Guide).

Payment Plans and Deferrals

If paying your full property tax bill by January 31 is a hardship, Texas offers several options to spread out or delay payment.

Quarterly Installment Plan

If you have an over-65, disabled person, or disabled veteran exemption, you can split your annual tax bill into four equal payments with no penalty or interest:

Submit a written request to your county tax office before the first payment is due.

Tax Deferral for Seniors and Disabled Homeowners

If you're 65 or older, disabled, or a disabled veteran, you can defer (postpone) your property taxes entirely for as long as you own and live in the home.

To apply, file Form 50-126 (Tax Deferral Affidavit) with your county appraisal district.

Key details:

• Taxes continue to accrue during the deferral, with 5% annual interest
• You're protected from foreclosure and penalty charges while the deferral is active
• The deferred taxes (plus interest) become due 180 days after you sell, move out, or pass away
• A surviving spouse aged 55+ can continue the deferral
• Deferred taxes appear as "delinquent" on public records, which may affect your credit

Deferral is a last resort, not a first choice — but it's an important safety net for homeowners who can't afford current payments.

Disaster Installment Plan

If your property was damaged in a declared natural disaster, you may qualify to split your tax bill into four interest-free installments under Section 31.032 of the Property Tax Code. Payments must be completed by July 31.

For more on delinquent tax consequences, see: What Happens If You Don't Pay Property Taxes in Texas?.

Disabled Veteran Exemptions

Texas offers graduated property tax exemptions for veterans with a VA disability rating:

100% Disabled Veteran Exemption

Veterans with a 100% disability rating (or individual unemployability) receive a total property tax exemption — they pay zero property taxes on their residence homestead.

Surviving spouses of 100% disabled veterans can keep this exemption as long as they don't remarry and continue living in the home. The exemption can also be transferred to a new homestead at the same dollar amount.

Solar Property Tax Exemption

Texas law exempts the added value of solar panels and renewable energy devices from property taxation. That means installing solar panels won't increase your property tax bill — even though it increases your home's market value.

This applies to solar panels, wind turbines, and other on-site renewable energy systems installed on your residence.

For details on how the exemption works, see: Texas Solar Property Tax Exemption.

Local Exemptions Beyond State Minimums

The state mandates certain minimum exemptions (like the $140,000 homestead exemption for school taxes), but cities, counties, and special districts can offer additional exemptions on top of those.

Common local exemptions include:

• Percentage homestead exemptions — some taxing units exempt a percentage of your home's value (up to 20%) in addition to the flat-dollar exemptions
• Additional over-65 and disabled exemptions — many cities and counties offer their own dollar amounts beyond the state minimum
• Local tax freezes — some taxing units have adopted their own tax ceilings for seniors and disabled homeowners

These vary significantly by location. Check your county appraisal district's website or call their office to find out exactly which local exemptions are available in your area.

For a broader overview, see: Texas Property Tax Exemptions.

Recent Legislative Changes

Texas lawmakers have been aggressive on property tax relief in recent sessions. Here's what's changed:

2023 — Proposition 4 (SB 2)

• Homestead exemption increased from $25,000 to $100,000
• Temporary 20% appraisal cap for non-homestead properties (expires December 31, 2026)
• School tax rate compression

2025 — Propositions 11 and 13 (SB 4, SB 23, HB 9)

• Homestead exemption increased from $100,000 to $140,000 (SB 4 / Prop 13)
• Over-65 and disabled additional exemption increased from $10,000 to $60,000 (SB 23 / Prop 11)
• Business personal property exemption increased to $125,000 (HB 9)

What's Coming Next

The Legislature doesn't meet again until 2027, but proposals are already circulating:

• Lt. Gov. Dan Patrick's "Double Nickel" — would lower the qualifying age for the senior tax freeze from 65 to 55, potentially saving older homeowners close to $10,000 over those extra 10 years
• Gov. Abbott's appraisal cap proposal — would reduce the homestead appraisal cap from 10% to 3% and limit appraisals to once every five years
• Extension of the 20% non-homestead cap — currently set to expire after 2026; whether the Legislature renews it remains an open question

Don't Leave Money on the Table

Between exemptions, caps, freezes, deferrals, and the right to protest, Texas homeowners have real tools to control their property tax bills. But none of them work unless you take action — filing your exemptions, meeting the deadlines, and protesting when your value is too high.

If you're not sure whether you're getting every dollar of relief you're entitled to, contact Ballard Property Tax Protest for a free consultation. We'll make sure your exemptions are in place and fight to get your appraised value where it should be.