Texas Homestead Exemption Guide (2026)
What is the Texas homestead exemption?
A homestead exemption reduces the taxable value of your primary residence, which directly lowers your property tax bill. Texas offers several layers of exemptions that stack on top of each other. The more you qualify for, the lower your taxable value.
There is an important distinction most homeowners miss: exemptions reduce what your property is taxed on, not your tax bill directly. If your home is appraised at $400,000 and you have $150,000 in total exemptions, you only pay taxes on $250,000. At a typical Texas effective tax rate of 2.1%, that difference alone saves over $3,150 a year.
Exemptions are also separate from protesting your appraised value. You can have every exemption available and still be overassessed. Exemptions reduce a starting number that may already be too high. That is where a protest comes in.
Every Texas homestead exemption explained
The table below covers every exemption available under Texas law as of 2026, who qualifies, and the reduction amount. Some exemptions are mandatory statewide; others are optional and set by local taxing entities.
| EXEMPTION | WHO QUALIFIES | REDUCTION AMOUNT | APPLIES TO | MANDATORY |
| General homestead exemption | Any homeowner occupying home as primary residence on Jan 1 | $140,000 off appraised value for school district taxes | School district taxes | Yes |
| Local optional homestead exemption | Homeowners in counties/cities that have adopted the exemption | Up to 20% of appraised value (minimum $5,000) | Local taxing entities | Optional |
| Over-65 exemption | Homeowners age 65 or older on Jan 1 of the tax year | $10,000 off appraised value for school district taxes plus additional local exemptions | School district + optional local | Yes |
| Over-65 school tax freeze | Homeowners age 65 or older (or disabled) | School taxes frozen at the level from the year you turned 65 | School district taxes only | Yes |
| Disability exemption | Homeowners who receive disability benefits under federal law (SSI, SSDI) | $10,000 off appraised value for school district taxes | School district + optional local | Yes |
| 100% disabled veteran exemption | Veterans with 100% VA disability rating, or their surviving spouse | Full exemption — no property taxes owed on primary residence | All taxing entities | Yes |
| Partial disabled veteran exemption | Veterans with a VA disability rating between 10% and 99% | $5,000 to $12,000 off appraised value, scaled by rating | All taxing entities | Yes |
| Surviving spouse of veteran | Surviving spouse of veteran killed on active duty or from service-connected cause | Full exemption if spouse has not remarried | All taxing entities | Yes |
| Surviving spouse of first responder | Surviving spouse of first responder killed in the line of duty | Full exemption as long as surviving spouse has not remarried | All taxing entities | Yes |
| 10% annual appraisal cap (HS cap) | Any homeowner with an active homestead exemption | Limits appraised value increase to 10% per year regardless of market value | All taxing entities | Yes |
Sources: Texas Tax Code Sections 11.13, 11.131, 11.132, 11.22, and related statutes. Local optional exemptions vary by taxing entity.
REAL NUMBERS
What each exemption actually saves you
Exemption amounts reduce your taxable value, not your tax bill directly. The examples below use a 2.1% effective tax rate, which is typical across major Texas counties. Your actual rate varies by county and taxing entities in your area.
| STANDARD HOMEOWNER: GENERAL HOMESTEAD EXEMPTION ONLY | |
| Appraised value | $400,000 |
| General exemption (school district) | – $140,000 |
| Local optional exemption (20%) | – $80,000 |
| Taxable value | $180,000 |
| Effective tax rate | 2.10% |
| ANNUAL SAVINGS VS. NO EXEMPTION | $3,780 / year |
| Without any exemptions, the same homeowner would owe $8,400/yr. With both exemptions applied, the bill drops to $4,620/yr. | |
| HOMEOWNER AGE 65+: GENERAL + OVER-65 EXEMPTIONS STACKED | |
| Appraised value | $400,000 |
| General exemption (school district) | – $140,000 |
| Over-65 exemption (school district) | – $10,000 |
| Local optional exemption (20%) | – $80,000 |
| Taxable value | $170,000 |
| Effective tax rate | 2.10% |
| ANNUAL SAVINGS VS. NO EXEMPTION | $4,830 / year |
| School taxes are also frozen at the level from the year you turned 65. If your school taxes were $2,800 that year, they cannot exceed $2,800 regardless of future appraisal increases. | |
| 100% DISABLED VETERAN: FULL EXEMPTION ON PRIMARY RESIDENCE | |
| Appraised value | $400,000 |
| 100% disability exemption | – $400,000 |
| Taxable value | $0 |
| Effective tax rate | 2.10% |
| ANNUAL SAVINGS VS. NO EXEMPTION | $8,400 / year |
| Veterans with a 100% VA disability rating owe zero property taxes on their primary residence in Texas. This applies to all taxing entities including school districts, counties, and cities. | |
| PARTIAL DISABLED VETERAN: 70% VA DISABILITY RATING EXAMPLE | |
| Appraised value | $400,000 |
| General exemption (school district) | – $140,000 |
| 70% disability exemption | – $10,000 |
| Local optional exemption (20%) | – $80,000 |
| Taxable value | $170,000 |
| Effective tax rate | 2.10% |
| ANNUAL SAVINGS VS. NO EXEMPTION | $4,830 / year |
| Partial disability exemptions scale from $5,000 (10-29%) to $12,000 (70-99%). Veterans with a 70%+ rating also qualify for additional local exemptions in some counties. | |
OFTEN MISUNDERSTOOD
What is the HS Cap and why it matters for your property
The Homestead Cap Limitation is one of the most searched and least understood concepts in Texas property taxes. Here is a plain-language explanation.
| THE 10% CAP EXPLAINED When you have a homestead exemption, your appraised value cannot increase by more than 10% per year, even if the market value of your home rose faster. The “capped value” is what you are taxed on. The Homestead Cap Limitation is the difference between your market value and your capped appraised value. It represents value that exists on paper but is not being taxed because the cap is protecting you. Example: Your home’s market value is $500,000. Last year’s appraised value was $400,000. The 10% cap limits this year’s appraised value to $440,000. Your Homestead Cap Limitation is $60,000. |
Why the Homestead Cap Limitation matters for your protest
You should still protest even if you have a large Homestead Cap Limitation. The Homestead Cap Limitation resets if you ever sell the home or remove the homestead exemption. And every year the appraisal district tries to push your market value higher, which increases the base for future years. If your market value is overinflated at $500,000 but the true value is $430,000, winning a protest to $430,000 eliminates the cap limitation entirely and gives you a permanently lower baseline going forward.
| HS CAP LOSS VS. NHS CAP LOSS You may also see “NHS cap loss” (non-homestead cap loss) on your appraisal notice. This applies to non-homestead residential properties such as rental homes and second properties, which also have a 10% cap starting in 2024 under new Texas law. The same logic applies: cap loss reduces taxable value but does not mean your market value assessment is accurate. |
ACTION STEPS
How to apply for your homestead exemption
Most Texas homeowners are not automatically enrolled in all exemptions they qualify for. You need to file an application with your county appraisal district.
General homestead exemption
File Form 50-114 with your county appraisal district. You must have owned and occupied the home as your primary residence on January 1 of the tax year. There is no annual renewal required once approved.
Over-65 and disability exemptions
Also filed via Form 50-114, checking the applicable box. For disability, you will need to provide proof of disability status (SSA award letter or VA rating documentation). Once approved, the school tax freeze activates automatically.
Veteran exemptions
File Form 50-135 (disabled veterans) or Form 50-114 for surviving spouse exemptions. You will need your VA disability rating letter. The 100% exemption requires annual certification in some counties.
Deadlines
The general deadline to file is April 30 of the tax year. Late applications may be accepted through the following January 31 with a penalty in some cases. If you have never filed for a homestead exemption and have owned the home for previous years, you can apply retroactively. Under Texas Tax Code Section 11.431, you can apply up to 2 years after the delinquency date of the first full year you lived in the home. For example, if you moved in during 2023, you can apply for tax year 2024 retroactively until January 31, 2027. The assessor-collector will send you a refund check for any overpaid taxes. Applying for a homestead exemption is completely free. There are companies that charge a fee to file on your behalf, but this is unnecessary as you can file directly with your county appraisal district at no cost.
COUNTY BREAKDOWN
Local optional exemptions by major county
The general homestead exemption is the same everywhere in Texas. Local optional exemptions vary by county and city. The table below shows what major Texas counties offer beyond the state-mandated minimum.
| COUNTY | LOCAL OPTIONAL EXEMPTION | OVER-65 ADDITIONAL | DISABILITY ADDITIONAL |
| Harris | 20% of appraised value | $160,000 off appraised value | $160,000 off appraised value |
| Dallas | Varies by city (up to 20%) | $70,000 off appraised value | $70,000 off appraised value |
| Tarrant | Varies by city (up to 20%) | $50,000 off appraised value | $50,000 off appraised value |
| Travis | 20% of appraised value | $85,000 off appraised value | $85,000 off appraised value |
| Bexar | Varies by city | $65,000 off appraised value | $65,000 off appraised value |
| Collin | Varies by city (up to 20%) | $50,000 off appraised value | $50,000 off appraised value |
| Denton | Varies by city (up to 20%) | $50,000 off appraised value | $50,000 off appraised value |
| Fort Bend | 20% of appraised value | $75,000 off appraised value | $75,000 off appraised value |
| Montgomery | Varies by city | $50,000 off appraised value | $50,000 off appraised value |
| Williamson | Varies by city (up to 20%) | $50,000 off appraised value | $50,000 off appraised value |
| Hays | 20% of appraised value | $50,000 off appraised value | $50,000 off appraised value |
| Galveston | Varies by city | $55,000 off appraised value | $55,000 off appraised value |
Local exemption amounts are set by individual taxing entities and may vary within a county. Verify current amounts with your county appraisal district. Values reflect publicly available 2025-2026 data.
Frequently asked questions
How much does the Texas homestead exemption save?
The general homestead exemption reduces your school district taxable value by $140,000. At an average school district tax rate of roughly 1.0%, that saves around $1,400 per year on school taxes alone. When combined with local optional exemptions (up to 20% of value), total savings typically range from $2,000 to $4,500 per year depending on your home value and location.
Do I need to reapply for my homestead exemption every year?
No. Once approved, your homestead exemption renews automatically as long as you continue to occupy the home as your primary residence. You only need to reapply if you move, buy a new home, or if your appraisal district requests reverification.
Can I have a homestead exemption on more than one property?
No. The homestead exemption applies only to your primary residence. You can only have one primary residence at a time in Texas.
What is the over-65 homestead exemption?
Homeowners age 65 or older receive an additional $10,000 exemption on top of the general $140,000 for school district taxes, plus any additional local exemptions offered by their county. More importantly, their school district taxes are frozen at the level from the year they turned 65, regardless of future appraisal increases.
Does having a homestead exemption mean I should not protest?
No. Exemptions and protests are two separate tools. Exemptions reduce your taxable value from whatever the appraised value is. If that appraised value is too high, you are still overpaying even with exemptions applied. Protesting gets the starting number right, which compounds your savings year over year.
Who is exempt from paying property taxes in Texas?
Veterans with a 100% VA disability rating pay zero property taxes on their primary residence. Surviving spouses of veterans killed in action or first responders killed in the line of duty are also fully exempt. All other homeowners have exemptions that reduce taxes but do not eliminate them entirely.
Exemptions help. A protest does the rest.
Resolute files your protest every year, handles all CAD communication, and only charges a fee when we win a reduction. Sign up in under three minutes before the May 15 deadline.
