Texas Homestead Exemption

You qualify if: (1) you own the home — your name must be on the deed, (2) you occupy it as your principal residence as of January 1 of the tax year, (3) you do not claim a homestead exemption on any other property in Texas or another state, and (4) no one else claims a homestead on it. Single-family homes, condos, manufactured homes, and up to 20 acres of land surrounding the home all qualify.

File Form 50-114 (Application for Residence Homestead Exemption) with your county appraisal district. Most counties accept online filing through their website — Harris (HCAD), Dallas (DCAD), Tarrant (TAD), Travis (TCAD), Bexar (BCAD), Collin (CCAD), Denton, Fort Bend (FBCAD), and Montgomery (MCAD) all offer online applications. You can also mail or walk in the form. Include a copy of your Texas driver's license showing the homestead address.

The standard deadline is April 30 of the tax year. However, Texas law allows late applications up to 2 years after the delinquency date (January 31) of the year you're claiming. So you can still apply for the 2026 homestead exemption as late as January 31, 2028. File as early as possible to maximize your savings — apply the year you move in.

No. Once your homestead exemption is approved, it stays with the property automatically every year as long as you continue to own and occupy the home. You only need to reapply if: (1) you move, (2) your county appraisal district requests verification (they occasionally audit), or (3) you become eligible for additional exemptions like over-65 or disabled.

The homestead cap limits how much your taxable appraised value can increase year-over-year, regardless of the market value. Once you have a homestead exemption for one full year, your taxable value can only increase by 10% (plus the value of any new improvements) in any given year. For example, if the market value jumps 40% due to a hot market, your taxable value only goes up 10%. In hot Texas markets this cap has saved homeowners tens of thousands of dollars.

Homeowners 65 and older qualify for additional benefits beyond the standard homestead: (1) an extra $10,000 exemption off school taxable value (some cities/counties add their own), (2) a "tax ceiling" that freezes the dollar amount of school taxes at the year you qualified — it cannot increase even if rates or values rise, (3) the option to defer all property taxes until the home is sold. Apply using Form 50-114 and check the over-65 section. You typically become eligible the year you turn 65.

Yes. Texas offers two disabled exemptions: (1) Disabled person exemption — similar benefits to over-65 ($10,000 off school taxes, tax ceiling, and deferral option) available to anyone receiving disability benefits that would qualify them for Social Security disability. (2) Disabled veteran exemption — ranges from $5,000 to 100% of value based on VA disability rating (10%-29% = $5K, 30%-49% = $7.5K, 50%-69% = $10K, 70%-99% = $12K, 100% disabled = full exemption). File Form 50-114 with documentation.

Yes, as long as the property remains your principal residence. Renting a room, having a home-based business, or renting out a garage apartment does not disqualify you. However, if you move out and rent the whole property, you lose the homestead — you must remove the exemption and apply for it on your new residence.

The exemption does not transfer to the buyer. The seller keeps the exemption through the year of sale (because the homestead is determined as of January 1), then it drops off. The buyer must apply separately for their own homestead exemption on the new property — this is why closing packets usually include a Form 50-114 reminder. If you're buying, apply as soon as you close or the following January, whichever comes first.

They work together. The homestead exemption reduces your taxable value by $100,000 for school taxes and triggers the 10% cap. A property tax protest challenges the appraised value itself — which is the base from which the exemption is subtracted. A successful protest lowers your appraised value, which then has the exemption applied on top, maximizing your savings. File the exemption first (once, permanently), then protest the appraisal every year.