Texas Homestead Exemption: How to Apply and What It Saves You

Of everything in Texas property tax, the homestead exemption is the closest thing to free money. It's one form. It doesn't cost anything. Once it's approved you generally don't have to file again. And plenty of homeowners never filed, often because they assumed someone else handled it at closing.

What is the Texas homestead exemption?

A homestead exemption removes part of your home's value from property taxes. It applies to the home you own and live in as your principal residence. You can only have one homestead at a time, and it's separate from a protest. A protest argues about what your home is worth. The exemption takes a slice of that value off the table no matter what it's worth.

The exemption does a second job, too. Once you've qualified, your home gets the 10% homestead cap, which limits how fast its appraised value can rise. It starts January 1 of the year after you first qualify. If you bought partway through a year, the law treats you as qualifying the following January 1, so the cap starts a year after that. We cover that cap in Market Value vs. Appraised Value.

How much does the homestead exemption save?

For school taxes, a lot. Texas Tax Code §11.13(b) requires every school district to exempt $140,000 of a homestead's value. That amount went up in 2025, after Texas voters approved it in November of that year. School taxes are usually one of the largest pieces of the bill, so this is where most of the savings come from.

Here's a rough example. Say your school district's tax rate is $1.10 per $100 of value. The $140,000 exemption saves you $1,540 a year in school taxes. Your district's actual rate is on your tax bill, and it may be higher or lower.

There's more around the edges. Counties that collect a farm-to-market road or flood control tax have to give a $3,000 exemption. Any city, county, school district or other taxing unit can choose to offer its own exemption of up to 20% of your home's value, at least $5,000. Whether yours does depends on where you live. Homeowners who are 65 or older or have a disability get more on top of all that, and that gets its own post.

Who qualifies for a homestead exemption in Texas?

You qualify if you own the home and live in it as your principal residence. Traditionally that meant owning and living there on January 1. Since 2022, if you buy a home partway through the year, you can get the exemption for the rest of that year right away, as long as the previous owner didn't already have the same exemption for that year (Tax Code §11.42(f)).

A rental or a weekend place doesn't qualify, and neither does a house you've moved out of for good. (A temporary absence of less than two years, without claiming another principal residence, doesn't cost you the exemption.)

How do I apply for a homestead exemption?

File Form 50-114, the Residence Homestead Exemption Application, with your county appraisal district. Not with the state, and not with the tax office. Many districts let you file online. In most cases you'll need a copy of your Texas driver's license or state ID, and the address on it has to match the home. Filing is free.

The standard deadline is April 30 (Tax Code §11.43(d)). If you missed it, §11.431 allows a late application up to two years after the date that year's taxes became delinquent. If you bought after January 1 and the seller didn't have the exemption that year, apply before the first anniversary of your purchase. Our Homestead Exemption Guide has the step-by-step, with links for each county we cover.

What mistakes do first-time applicants make?

The biggest one is assuming it's automatic. It isn't. Your title company or lender may have mentioned it, but you're the one who files. Close behind: an ID that still shows your old address, which can hold up the application.

Then there are the letters. Every year, companies mail official-looking offers to file your homestead exemption for a fee. The Harris Central Appraisal District puts it bluntly: there's "absolutely no charge" to file your own. Don't pay someone to fill out a free form.

A few more. Not checking your appraisal notice the next spring to confirm the exemption actually shows up. Trying to keep a homestead on a house you've moved out of while claiming the new one. And ignoring a letter asking you to reapply. Appraisal districts are required to review homestead exemptions at least once every five years, and if they ask you to file again and you don't, you can lose it.

Our advice, even though it doesn't involve our tool: if you don't have this exemption yet, go file it before you think about protesting. For most homeowners it's worth more than a typical protest. Once it's in place, our free tool can compare your appraisal to similar nearby homes and show you whether a protest is worth your time too.

Quick answers

How much is the homestead exemption in Texas? School districts must exempt $140,000 of a homestead's value from school taxes under Texas Tax Code §11.13(b), an amount that took effect in 2025. Some counties, cities and other taxing units offer additional exemptions.

When is the deadline to apply for a homestead exemption in Texas? The standard deadline is April 30. Late applications are allowed up to two years after the delinquency date for that year's taxes. If you bought after January 1 and the seller didn't have the exemption that year, apply before the first anniversary of your purchase.

Does it cost anything to file for a homestead exemption? No. Filing a homestead exemption application with your county appraisal district is free, so there's no reason to pay a company to file it for you.

Do I have to reapply for my homestead exemption every year? No. Once it's approved, it generally continues until you sell or stop qualifying. Your appraisal district can ask you to reapply, though, and it's required to review homestead exemptions at least once every five years.