Owning a home in Texas comes with one of the most valuable property tax benefits in the state: the homestead exemption. Also called a homestead tax exemption, this benefit reduces the taxable value of your primary residence, which can lower your annual property tax bill.
Texas voters approved expanded exemption amounts in November 2025, making the savings even more meaningful for homeowners in 2026. Here is what Texas homeowners need to know about how the homestead exemption works, who qualifies, when to apply, and what to do if you are still behind on property taxes.
What Does It Mean to Homestead Your House in Texas?
Homesteading your house in Texas means filing for a residence homestead exemption on your primary residence. Some homeowners also describe this as homesteading their property, but for property tax purposes, the main benefit comes from applying for the exemption through your county appraisal district.
A homestead exemption is not a separate deed filing or a new form of ownership. It simply means you are applying to have a portion of your home’s taxable value removed before your property tax bill is calculated.
Once approved, the exemption stays in place automatically each year as long as you continue to own and live in the home as your primary residence. You do not need to reapply annually unless you move, your exemption is removed, or your appraisal district requests updated information.
A common point of confusion is the difference between a homestead designation and a homestead exemption. Some companies charge fees to file homestead designation paperwork, but that is not required to receive a homestead tax exemption. You can apply for the exemption directly through your county appraisal district at no cost.
What Is the Texas Homestead Exemption in 2026?
The Texas homestead exemption reduces the taxable value of your primary residence for property tax purposes. In 2026, Texas school districts are required to provide a $140,000 exemption on qualifying residence homesteads.
That means if your home qualifies, the school district portion of your property taxes is calculated after removing $140,000 from your home’s taxable value.
In addition to the school district exemption, local taxing units such as cities, counties, and special districts may offer an optional local homestead exemption of up to 20% of your home’s appraised value. The local option exemption cannot be less than $5,000. Counties that collect farm-to-market or flood control taxes also provide an additional $3,000 residence homestead exemption.
The exemption can also help protect homeowners from large tax increases. For qualifying homesteads, the taxable appraised value generally cannot increase by more than 10% per year after the exemption is in place, not including changes from new improvements.
Is the Homestead Exemption the Same as a Homestead Property Tax Credit?
Some homeowners search for a homestead property tax credit, but in Texas, the benefit is generally called a residence homestead exemption.
A credit usually reduces the amount of tax owed after the bill is calculated. A homestead exemption works differently. It reduces the taxable value of your primary residence before your property tax bill is calculated.
For Texas homeowners, the correct term is usually homestead exemption or residence homestead exemption, even if some people refer to it as a homestead property tax credit.
How Much Does the Homestead Exemption Save in Texas?
The amount you save depends on your home’s appraised value and the tax rates set by your local taxing units.
Here is a simple example using a Texas home appraised at $350,000 in 2026:
Without the exemption, school district taxes are calculated on the full $350,000 value. With the $140,000 homestead exemption applied, school district taxes are calculated on $210,000 instead.
At a school district tax rate of 1.0%, that would reduce the school district portion of your property tax bill by $1,400 per year.
Your total savings may be higher if your county, city, or other local taxing units offer additional optional homestead exemptions.
For homeowners age 65 or older or disabled homeowners who receive the full $200,000 school district exemption, the savings can be even greater. A home appraised at $350,000 would be taxed on only $150,000 for school district purposes.
Who Qualifies for the Texas Homestead Exemption?
To qualify for the general Texas homestead exemption, you must:
- Own the property
- Use it as your primary residence
- Live in the home as of January 1 of the tax year
- Not claim a homestead exemption on another property in or outside of Texas
If you purchased your home after January 1, you may still qualify for the exemption for the applicable portion of that tax year if the previous owner did not already receive the same exemption for that year.
Age 65 or Older
Texas homeowners who are 65 or older receive an additional $60,000 school district exemption on top of the standard $140,000 homestead exemption. This brings the total school district exemption to $200,000.
A surviving spouse age 55 or older may be eligible to keep the age 65 or older exemption if the qualifying spouse passes away, as long as the surviving spouse continues to live in the home as their primary residence. For a full list of property tax breaks available to Texas seniors, including the senior freeze, see our complete guide.
Disabled Homeowners
Disabled homeowners may also qualify for an additional $60,000 school district exemption. To qualify, the homeowner must meet the definition of disability used for federal disability insurance benefits.
A homeowner who is both disabled and age 65 or older may receive both exemptions in the same year, but not from the same taxing unit. Because these rules can vary depending on the taxing units involved, it is best to contact your local appraisal district for guidance.
When to Apply for the Homestead Exemption in Texas
The general deadline to apply for a Texas homestead exemption is before May 1 of the tax year.
If you recently purchased a home and did not file before the deadline, contact your county appraisal district to ask about late filing options. In many cases, homeowners may still be able to apply after the standard deadline, depending on the situation.
How to Apply for the Texas Homestead Exemption
You apply for the Texas homestead exemption through the appraisal district in the county where your property is located. There is no fee to apply.
The primary form is Form 50-114, Application for Residence Homestead Exemption. You can get this form through the Texas Comptroller’s website at comptroller.texas.gov or through your local county appraisal district.
In some cases, Form 50-114-A may also be required for certain affidavit situations.
To complete the application, you will generally need to provide information about the property, confirm that it is your primary residence, and certify that you are not claiming a homestead exemption on another property.
Do You Have to File the Homestead Exemption Every Year in Texas?
No. You do not have to file the homestead exemption every year in Texas once it has been approved.
The exemption renews automatically each year as long as you continue to own and occupy the property as your primary residence. You only need to reapply if you move to a new home, your exemption is removed, your ownership status changes, or your county appraisal district asks for updated documentation.
What If You Are Still Behind on Property Taxes?
The homestead exemption can lower future property tax bills, but it does not erase property taxes you already owe.
If you are already behind on Texas property taxes, penalties and interest can continue to grow after the delinquency date. A homestead exemption may reduce future bills, but it will not automatically stop collection activity, remove an existing delinquent balance, or protect your home from further action if the taxes remain unpaid.
Home Tax Solutions helps Texas homeowners who are behind on property taxes get back on track. We pay your delinquent property tax balance directly to the county, stop penalties and interest from growing, and set you up with a fixed monthly repayment plan. There is no credit check and no money due at closing.
Frequently Asked Questions
What is the Texas homestead exemption for 2026?
The Texas homestead exemption reduces the taxable value of a qualifying primary residence. In 2026, Texas school districts are required to provide a $140,000 residence homestead exemption.
What is a homestead tax exemption?
A homestead tax exemption is a property tax benefit that lowers the taxable value of your primary residence. In Texas, this is usually called the residence homestead exemption.
How much is the homestead exemption for seniors in Texas?
Texas homeowners age 65 or older receive an additional $60,000 school district exemption on top of the standard $140,000 exemption. This brings the total school district exemption to $200,000.
What does it mean to homestead your house in Texas?
Homesteading your house in Texas means filing for a residence homestead exemption on your primary residence. It reduces the taxable value of your home, which can lower your annual property tax bill.
What does it mean to homestead your property?
To homestead your property means to claim your qualifying primary residence as your residence homestead for property tax purposes. In Texas, this is done by applying through your county appraisal district.
Do you have to file the homestead exemption every year in Texas?
No. Once your homestead exemption is approved, it generally renews automatically each year as long as you continue to own and live in the home as your primary residence.
When is the deadline to apply for the homestead exemption in Texas?
The general filing deadline is before May 1 of the tax year. Contact your local county appraisal district to confirm deadlines and ask about late filing options.
Does the homestead exemption automatically renew in Texas?
Yes. The homestead exemption automatically renews as long as you continue to qualify and your appraisal district does not request updated information.
Can I get a homestead exemption if I bought my home after January 1?
In many cases, yes. If the previous owner did not receive the same exemption for that tax year, you may qualify for the exemption for the applicable portion of the year.
Does the homestead exemption eliminate my property tax bill?
No. The homestead exemption lowers the taxable value of your home, but it does not usually eliminate your property tax bill entirely.
Is a homestead property tax credit the same as a homestead exemption?
Not exactly. In Texas, the benefit is generally called a homestead exemption, not a property tax credit. The exemption reduces your home’s taxable value before your property tax bill is calculated.
Can I still get a property tax loan if I have a homestead exemption?
Yes. A property tax loan from Home Tax Solutions can help pay off your delinquent property tax balance even if you already have a homestead exemption. The exemption may lower future bills, but a property tax loan can help stop penalties and interest if you are already behind.
How do I apply for the Texas homestead exemption?
File Form 50-114 with the appraisal district in the county where your property is located. There is no cost to apply, and your appraisal district can help you through the process.
Behind on Texas property taxes even with a homestead exemption in place? Home Tax Solutions can help. Apply online or call (800) 688-7306 for a free quote today.
