Texas Homestead Exemption Guide 2026: School, County & Senior Benefits Explained

Texas offers one of the most generous homestead exemption programs in the United States, providing significant property tax relief to homeowners. Understanding how these exemptions work — and layering multiple exemptions if you qualify — can save thousands of dollars annually on your property tax bill.

This guide explains the $100,000 mandatory school district exemption, the $25,000 general exemption, additional benefits for seniors (over 65) and disabled veterans, and the step-by-step application process.

The $100,000 School District Exemption (Mandatory Statewide)

Texas law requires every school district in the state to offer a $100,000 homestead exemption on your home's assessed value for school maintenance and operations (M&O) taxes. This is the largest single exemption available to all Texas homeowners.

How It Works

Example: $300,000 home in Austin ISD

• Market value: $300,000
• School exemption: -$100,000
• Taxable value (for school taxes only): $200,000
• School tax rate: 1.0448% (Austin ISD 2025 M&O rate)
• School taxes: $2,090 instead of $3,134
• Annual savings: $1,044

This exemption applies only to the school district's maintenance and operations (M&O) tax rate, which is typically 0.80% to 1.20% of assessed value. It does not apply to the school district's interest and sinking (I&S) rate used for bond debt payments.

Who Qualifies

Any homeowner who:

• Owns and occupies the home as their primary residence on January 1 of the tax year
• Is an individual (not a business or trust)
• Uses the property as their principal residence

You do not need to be a U.S. citizen or have owned the home for any minimum period — you simply need to occupy it as your primary residence on January 1.

The $25,000 General Homestead Exemption (County & Local)

In addition to the school exemption, Texas homeowners receive a minimum $25,000 general exemption that applies to county taxes, city taxes, and any other local taxing jurisdictions (hospital districts, community college districts, etc.).

Many counties and cities offer optional additional exemptions beyond the $25,000 minimum. These optional amounts vary by jurisdiction.

How It Works

Example: $300,000 home in Travis County (Austin)

• Market value: $300,000
• General exemption: -$25,000
• Taxable value (for county/city taxes): $275,000
• Travis County tax rate: 0.2542%
• County taxes: $699 instead of $763
• Annual savings: $64 (county only)

The general exemption also applies to:

• City taxes: Austin's rate is 0.4640%, saving $116/year on a $300K home
• Community college: Austin Community College rate is 0.0942%, saving $24/year

Total general exemption savings across all taxing units: approximately $200-300/year on a $300K home in Austin.

Optional Local Exemptions (Varies by County/City)

Some counties and cities offer higher optional exemptions. For example:

• Harris County (Houston): $25,000 (minimum only)
• Dallas County: $25,000 (minimum only)
• Bexar County (San Antonio): $25,000 county + $25,000 city of San Antonio

Check your county appraisal district website to see if your jurisdiction offers optional exemptions beyond the minimum.

Over-65 Exemption: Additional $10,000 + School Tax Freeze

Texas homeowners who turn 65 (or who have a qualifying disability) receive two powerful additional benefits:

1. Additional $10,000 exemption from school district taxes
2. School tax ceiling (freeze) that locks your school taxes at the amount you paid when you qualified

The Additional $10,000 Exemption

If you are 65 or older on January 1, school districts must provide an additional $10,000 exemption on top of the standard $100,000 exemption.

Example: 66-year-old homeowner with $300,000 home

• Market value: $300,000
• Standard school exemption: -$100,000
• Over-65 additional exemption: -$10,000
• Taxable value (for school taxes): $190,000
• School tax rate: 1.0448% (Austin ISD)
• School taxes: $1,985 instead of $2,090
• Additional annual savings: $105

The School Tax Ceiling (Freeze)

This is the most valuable long-term benefit for seniors. Once you qualify for the over-65 exemption, your school taxes are frozen at the dollar amount you paid in the year you qualified, even if:

• Your home's market value increases
• The school district raises its tax rate
• You make improvements to the property

Example: Over-65 homeowner in rapidly appreciating Austin market

• 2026 (age 65): $300K home, $1,985 school tax bill → FROZEN
• 2030 (age 69): Home value rises to $450K, school rate increases to 1.10%
• Without freeze: School tax would be $3,850 ($450K - $110K exemptions × 1.10%)
• With freeze: School tax remains $1,985
• Annual savings: $1,865/year

Over a 20-year retirement, the cumulative savings can easily exceed $30,000-$50,000 in high-appreciation markets like Austin, Dallas, or Houston.

County/City Tax Ceiling (Optional)

Counties, cities, and other taxing units may optionally offer a tax ceiling for over-65 homeowners, but it is not mandatory like the school ceiling. Check with your county appraisal district to see if your local jurisdictions offer this benefit.

For example:

• Travis County: Offers optional over-65 county tax ceiling
• City of Austin: Offers optional over-65 city tax ceiling
• Harris County: Offers optional over-65 county tax ceiling

How to Qualify

You must:

• Be 65 years old or older on January 1 of the tax year
• Own and occupy the home as your primary residence
• File a homestead exemption application (Form 50-114) if you haven't already
• The ceiling applies beginning in the year you turn 65

If you are married and file a joint homestead exemption, only one spouse needs to be 65 for the household to qualify.

Disabled Veteran Exemptions: 10% to 100% Off Assessed Value

Texas offers one of the most generous disabled veteran property tax exemption programs in the nation. Depending on your disability rating from the VA, you may qualify for a partial or total exemption from property taxes on your homestead.

Exemption Amounts by VA Disability Rating

Total Exemption for 100% Disabled Veterans

If you are rated 100% disabled by the VA (or deemed unemployable due to a service-connected disability), you receive a total exemption from all property taxes on your homestead, regardless of the home's value.

Example: 100% disabled veteran with $400,000 home in Collin County (Plano)

• Home value: $400,000
• Combined tax rate: 2.20% (school + county + city + special districts)
• Without exemption: $8,800/year
• With 100% exemption: $0
• Annual savings: $8,800

Surviving Spouse Benefit

If a disabled veteran who qualified for a 100% exemption dies, the surviving spouse may continue to receive the total exemption as long as:

• The surviving spouse has not remarried
• The property was the homestead when the veteran died
• The surviving spouse continues to occupy the property as their homestead

How to Apply

To claim a disabled veteran exemption, you must file with your county appraisal district and provide:

• VA Award Letter showing your disability rating
• Homestead exemption application (Form 50-114)
• Disabled veteran exemption application (Form 50-135)
• Driver's license or state ID showing the property address

File by April 30 of the tax year to receive the exemption for that year. If you are approved, the exemption continues automatically each year as long as you continue to qualify.

Layering Exemptions

Disabled veterans may layer exemptions. For example, a 70-year-old veteran with a 50% disability rating receives:

• $100,000 school exemption (standard)
• $10,000 over-65 school exemption
• $10,000 disabled veteran exemption (50% rating)
• School tax freeze (over-65 benefit)
• $25,000 general exemption (county/city)

Total exemptions: $145,000, plus the school tax freeze protecting against future increases.

Other Exemptions: Disabled Persons, Surviving Spouse of First Responder

Disabled Person Exemption

Homeowners with a non-service-connected disability (civilian disability) may qualify for a $10,000 exemption from school district taxes if they receive:

• Social Security disability benefits, or
• Benefits for total and permanent disability under a government retirement program

This exemption also includes the school tax ceiling (freeze), just like the over-65 exemption.

Surviving Spouse of First Responder or Military Member

If your spouse was a first responder (police officer, firefighter, paramedic, etc.) or military service member killed in the line of duty, you may qualify for a total exemption from property taxes on your homestead as long as:

• You have not remarried
• The property was your homestead when your spouse died
• You continue to occupy the property as your homestead

This exemption applies to all property taxes (school, county, city, etc.), similar to the 100% disabled veteran exemption.

Donated Residence Homestead for Disabled Veteran

If a charitable organization donates a home to a disabled veteran, the veteran may receive a total exemption for the year the home is donated, plus the following two years, even if the disability rating is less than 100%.

How to Apply for Texas Homestead Exemption

Step 1: Determine Eligibility

You qualify for a Texas homestead exemption if you:

• Own the property (or are buying it under contract)
• Occupy it as your primary residence on January 1 of the tax year
• Are an individual (not a business, corporation, or most trusts)

You do not need to be a U.S. citizen, permanent resident, or Texas resident for any minimum period. You simply need to occupy the home as your principal residence.

Step 2: Gather Required Documents

You will need:

• Driver's license or state ID showing the property address (both spouses if married and filing jointly)
• Vehicle registration showing the property address (helpful but not always required)
• Proof of ownership: Deed, closing statement, or mortgage statement
• Additional documents if claiming over-65 or disabled veteran exemptions:
  • Birth certificate or government-issued ID showing date of birth (over-65)
  • VA award letter showing disability rating (disabled veteran)

Step 3: Complete the Application (Form 50-114)

Download and complete Form 50-114 (Residence Homestead Exemption Application) from your county appraisal district's website or the Texas Comptroller's website.

The form asks for:

• Property address and legal description
• Owner information (name, date of birth, driver's license number)
• Occupancy date (when you moved in)
• Whether you claim any other homestead exemptions in Texas or another state
• Whether you are applying for over-65, disability, or disabled veteran exemptions

If you are 65 or older, complete the additional section on the form and attach proof of age.

If you are a disabled veteran, also complete Form 50-135 (Disabled Veteran's Exemption Application) and attach your VA award letter.

Step 4: File with Your County Appraisal District

Submit your completed application and supporting documents to your county appraisal district (not the county tax office). You can typically:

• Mail the application
• Deliver it in person
• File online (some counties offer e-filing)

Find your county appraisal district contact information at: Texas Comptroller County Directory

Step 5: Application Deadlines

Standard deadline: April 30 of the tax year

If you file by April 30, your exemption applies to the current year's property taxes (due the following January-February).

Late filing allowed: You may file up to two years late, but:

• The exemption will not apply retroactively to prior years
• You may owe a penalty for late filing
• The appraisal district has discretion to waive the deadline for good cause

First-year homeowners: If you purchase a home mid-year, you can file for the exemption as soon as you move in, but it will only apply if you occupy the home as your primary residence on January 1 of the tax year. If you move in after January 1, your exemption begins the following year.

Step 6: Receive Approval and Annual Renewal

The appraisal district will review your application and typically approve it within 30-90 days. You will receive written notice of approval.

Once approved, your homestead exemption continues automatically each year as long as you:

• Continue to own and occupy the home
• Do not claim a homestead exemption on another property

You do not need to reapply each year unless you move to a new home or your eligibility status changes (e.g., you turn 65 and want to add the over-65 exemption).

Homestead Protections Beyond Property Tax Exemptions

Texas homestead laws provide two additional protections beyond property tax savings:

1. Creditor Protection (Unlimited Value)

Texas offers one of the strongest homestead creditor protections in the nation. Your homestead is protected from forced sale by most creditors, regardless of the home's value.

What is protected:

• Primary residence (house and up to 10 acres in a city, or 100-200 acres rural)
• Protected from judgment creditors, bankruptcy trustees, and most lawsuits
• No dollar limit on the homestead exemption (unlike many states)

Exceptions (homestead can still be sold for these debts):

• Property taxes owed on the homestead
• Mortgage or home equity loan secured by the homestead
• Federal tax liens (IRS)
• Home improvement liens (if you hired a contractor and didn't pay)
• HOA dues or assessments
• Refinancing or home equity loans (limited to 80% LTV)

2. Surviving Spouse and Minor Children Rights

If you die, your homestead passes to your surviving spouse or minor children (if you have no spouse), and they may continue to occupy it even if the will or probate would otherwise require its sale.

This ensures that:

• A surviving spouse cannot be forced to sell the home to settle estate debts
• Minor children have a place to live until they reach adulthood

Homestead Portability in Texas (Limited vs Florida)

Texas does not offer homestead exemption portability in the way Florida does. If you move from one Texas home to another:

What Carries Over

• Over-65 or disability tax ceiling: If you had a school tax ceiling on your old home, you may transfer the ceiling to your new Texas homestead. Your school taxes on the new home will be calculated as if you had the ceiling from the beginning.

What Does NOT Carry Over

• Exemption dollar amounts: You do not carry over any "saved" exemption value like Florida's portability system. Your new home receives the standard $100,000 school exemption (or $110,000 if over-65), regardless of how long you owned your previous home.
• Appraised value cap: Your new home is assessed at current market value. Texas does not cap annual increases like California (Prop 13) or Florida (Save Our Homes), so if you move to a more expensive home, you will pay taxes on the full new appraised value (minus exemptions).

Filing Requirement When You Move

If you sell your Texas home and buy a new one in Texas, you must file a new homestead exemption application (Form 50-114) with your new county appraisal district within the first year.

If you are over 65 or disabled, also file to transfer your tax ceiling using Form 50-114-A (Application for Transfer of Age 65 or Older or Disabled Person Homestead Tax Ceiling).

Common Mistakes and How to Avoid Them

Mistake 1: Not Filing in Time for Over-65 Exemption

Many homeowners turn 65 but forget to update their homestead exemption to add the over-65 benefit. This means they miss out on the $10,000 additional exemption and, more importantly, the tax ceiling freeze.

Fix: File an amended homestead exemption application as soon as you turn 65 (or in the year you turn 65). The over-65 exemption and ceiling apply retroactively to January 1 of the year you turn 65, even if you don't turn 65 until later in the year.

Mistake 2: Claiming Homestead on Two Properties

Texas law allows only one homestead exemption per household. If you own multiple properties, you can only claim the exemption on your primary residence.

Some homeowners mistakenly claim exemptions on both a primary residence and a vacation home or investment property. This is illegal and can result in:

• Loss of the exemption
• Back taxes owed (up to 5 years)
• Penalties of up to 50% of the back taxes
• Potential criminal fraud charges

Fix: If you own multiple properties, ensure you only claim the homestead exemption on the one you occupy as your primary residence on January 1.

Mistake 3: Not Updating Address on Driver's License

Appraisal districts require your driver's license address to match the homestead property address. If you move and don't update your license, your exemption application may be delayed or denied.

Fix: Update your driver's license address with the Texas DPS within 30 days of moving. Submit the updated license with your homestead application.

Mistake 4: Assuming Exemption Transfers Automatically When Moving

If you sell your home and buy a new one in Texas, your homestead exemption does not transfer automatically. You must file a new application with the new county appraisal district.

Fix: File Form 50-114 for your new home by April 30 of the year after you move in. If you are over 65 or disabled, also file Form 50-114-A to transfer your tax ceiling.

Mistake 5: Not Protesting Appraisal After Getting Exemption

Many homeowners believe that getting a homestead exemption means they cannot or should not protest their appraised value. This is false.

You can and should protest your appraisal if you believe your home is overvalued, even if you have a homestead exemption. Lowering your appraised value saves money on all taxes (school, county, city, etc.), not just the portion affected by exemptions.

Fix: Review your Notice of Appraised Value each spring. If your appraised value seems high compared to recent sales of similar homes, file a protest by May 15 (or 30 days after your notice is mailed, whichever is later).