Last Updated: 2026-03-19
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.
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.
Example: $300,000 home in Austin ISD
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.
Any homeowner who:
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.
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.
Example: $300,000 home in Travis County (Austin)
The general exemption also applies to:
Total general exemption savings across all taxing units: approximately $200-300/year on a $300K home in Austin.
Some counties and cities offer higher optional exemptions. For example:
Check your county appraisal district website to see if your jurisdiction offers optional exemptions beyond the minimum.
Texas homeowners who turn 65 (or who have a qualifying disability) receive two powerful additional benefits:
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
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:
Example: Over-65 homeowner in rapidly appreciating Austin market
Over a 20-year retirement, the cumulative savings can easily exceed $30,000-$50,000 in high-appreciation markets like Austin, Dallas, or Houston.
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:
You must:
If you are married and file a joint homestead exemption, only one spouse needs to be 65 for the household to qualify.
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.
| VA Disability Rating | Exemption Amount | Savings on $300K Home (2.5% total tax rate) |
|---|---|---|
| 10% to 29% | $5,000 | ~$125/year |
| 30% to 49% | $7,500 | ~$188/year |
| 50% to 69% | $10,000 | ~$250/year |
| 70% to 100% | $12,000 | ~$300/year |
| 100% (or unemployable) | Total exemption | $7,500/year (100% exemption) |
| Age 65+ with 10-90% | $12,000 | ~$300/year |
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)
If a disabled veteran who qualified for a 100% exemption dies, the surviving spouse may continue to receive the total exemption as long as:
To claim a disabled veteran exemption, you must file with your county appraisal district and provide:
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.
Disabled veterans may layer exemptions. For example, a 70-year-old veteran with a 50% disability rating receives:
Total exemptions: $145,000, plus the school tax freeze protecting against future increases.
Homeowners with a non-service-connected disability (civilian disability) may qualify for a $10,000 exemption from school district taxes if they receive:
This exemption also includes the school tax ceiling (freeze), just like the over-65 exemption.
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:
This exemption applies to all property taxes (school, county, city, etc.), similar to the 100% disabled veteran exemption.
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%.
You qualify for a Texas homestead exemption if you:
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.
You will need:
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:
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.
Submit your completed application and supporting documents to your county appraisal district (not the county tax office). You can typically:
Find your county appraisal district contact information at: Texas Comptroller County Directory
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:
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.
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:
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).
Texas homestead laws provide two additional protections beyond property tax savings:
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:
Exceptions (homestead can still be sold for these debts):
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:
Texas does not offer homestead exemption portability in the way Florida does. If you move from one Texas home to another:
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).
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.
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:
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.
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.
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.
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).
Texas offers multiple homestead exemptions that reduce your property's taxable value. The main exemptions are: (1) $100,000 off assessed value for school district taxes (mandatory statewide), (2) $25,000 general exemption for county, city, and local taxes, (3) additional $10,000 for homeowners 65 or older, and (4) partial to total exemptions for disabled veterans. On a $300,000 home, these exemptions typically save $2,500-$3,500 per year depending on local tax rates.
File Form 50-114 (Residence Homestead Exemption Application) with your county appraisal district by April 30. You'll need a driver's license or state ID showing the property address, proof of ownership, and additional documents if claiming over-65 or disabled veteran benefits. Once approved, the exemption continues automatically each year as long as you occupy the home as your primary residence.
Homeowners 65 or older receive a school tax 'ceiling' (freeze) that locks their school district taxes at the dollar amount paid in the year they qualified, even if the home's value increases or tax rates rise. For example, if you qualified at age 65 with $2,000 in school taxes, that amount stays frozen even if your home value doubles over the next 20 years. This can save tens of thousands of dollars over a retirement.
Yes. Veterans with a 100% VA disability rating (or unemployable due to service-connected disability) receive a total exemption from all property taxes on their homestead, regardless of the home's value. Veterans with disability ratings from 10% to 99% receive partial exemptions ranging from $5,000 to $12,000 off assessed value. Surviving spouses may continue the 100% exemption if they do not remarry.
Your exemption does not transfer automatically. You must file a new homestead exemption application (Form 50-114) with your new county appraisal district. If you are over 65 or disabled and had a school tax ceiling on your old home, you can transfer the ceiling to your new home by filing Form 50-114-A. The exemption dollar amounts themselves ($100K school, $25K general) do not carry over like Florida's portability system — your new home simply receives the standard exemptions.
The standard deadline is April 30 of the tax year. If you file by this date, your exemption applies to the current year's taxes. Late filing is allowed up to two years after the deadline, but the exemption will not apply retroactively and you may owe a penalty. For over-65 exemptions, you should file in the year you turn 65 — the exemption applies to January 1 of that year even if your birthday is later in the year.
No. Texas does not require U.S. citizenship or permanent residency to qualify for a homestead exemption. You only need to own and occupy the property as your primary residence on January 1 of the tax year.
No. The homestead exemption applies only to your primary residence — the home you occupy as your principal dwelling on January 1. You cannot claim the exemption on rental properties, vacation homes, or investment properties. Texas allows only one homestead exemption per household. Claiming exemptions on multiple properties is illegal and can result in back taxes, penalties, and fraud charges.
Both states offer strong homestead benefits, but with key differences. Texas offers a larger standard school exemption ($100,000 vs Florida's $50,000) and unlimited creditor protection regardless of home value. Florida offers a 3% annual cap on assessed value increases (Save Our Homes) and portability to transfer up to $500,000 in accumulated benefit when moving within Florida. Texas does not cap annual value increases or offer portability, but does allow over-65 homeowners to transfer their tax ceiling when moving to a new Texas home.
In Texas, 'appraised value' and 'assessed value' are the same — it's the market value determined by your county appraisal district. Your 'taxable value' is your appraised value minus any exemptions (homestead, over-65, disabled veteran, etc.). Property taxes are calculated on the taxable value, not the appraised value.
Yes. Having a homestead exemption does not prevent you from protesting your appraised value. In fact, lowering your appraised value saves money on all taxes (school, county, city), not just the portion affected by exemptions. File a protest with your appraisal review board by May 15 (or 30 days after your notice is mailed) if you believe your home is overvalued.
If you sell your homestead mid-year, you lose the exemption for the following tax year (since you won't occupy it as your primary residence on January 1). The exemption applies for the portion of the year you owned and occupied the home. The buyer must file their own homestead application to receive the exemption starting the following year (if they occupy it as their primary residence on January 1).