Texas Homestead Exemption 2025: How to Save Up to $1,400 on Property Taxes
The Texas homestead exemption removes $100,000 from your home's taxable value for school district taxes—saving most homeowners $700-$1,400+ every year. Yet roughly 20% of eligible Texas homeowners still haven't claimed this free benefit. This guide covers exactly how to apply, who qualifies, additional exemptions for seniors and veterans, and the critical April 30 deadline.
Key Takeaways:
What Is the Texas Homestead Exemption?
The homestead exemption reduces the taxable value of your primary residence. You still own a home worth (let's say) $400,000—but for property tax purposes, a portion of that value is exempt from taxation.
In Texas, the homestead exemption removes $100,000 from your home's taxable value for school district taxes. Since school taxes typically make up 40-50% of your total property tax bill, this is significant.
How Much Will You Save?
Here's what the numbers look like for a typical Texas homeowner:
- $300,000 home: ~$700-900/year in savings
- $400,000 home: ~$900-1,100/year in savings
- $500,000 home: ~$1,100-1,400/year in savings
These savings compound every year you own the home. Over 10 years, that's $7,000-$14,000 back in your pocket.
Additional Exemptions You May Qualify For
Age 65+ or Disabled: Additional $10,000 exemption plus a tax ceiling that freezes your school taxes at their current amount.
100% Disabled Veteran: Complete exemption from property taxes on your primary residence.
Surviving Spouse: May continue receiving exemptions after spouse's death under certain conditions.
How to Apply
Step 1: Download Form 50-114 from your county appraisal district website or the Texas Comptroller's site.
Step 2: Gather your documents: Texas driver's license or ID showing the property address.
Step 3: Complete the application—it's straightforward and takes about 10 minutes.
Step 4: Submit by April 30 for the current tax year. You can also file retroactively for up to 2 prior years.
The 10% Homestead Cap Bonus
Once your homestead exemption is in place, Texas law caps how much your assessed value can increase each year at 10%—regardless of how much your home's market value jumps. In hot markets, this cap is incredibly valuable.
Common Mistakes to Avoid
- Assuming it's automatic: You must apply—the exemption doesn't happen by itself.
- Not updating your address: Your driver's license must show the property address.
- Forgetting after a move: Exemptions don't transfer. File new paperwork when you buy a new home.
Paying Too Much in Property Taxes?
Let our licensed property tax experts assess your tax bill for potential savings. Over 80% of protests get a reduction of more than $1,000 and it takes less than 3 minutes to enroll.
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FAQs
Do I need to reapply for homestead exemption every year?
No. Once approved, your homestead exemption remains in effect until you sell the property or it's no longer your primary residence.
Can I get a homestead exemption on a rental property?
No. The homestead exemption only applies to your primary residence—the home where you live.
I just bought my house. When can I apply?
You can apply as soon as you close and occupy the home as your primary residence. File by April 30 to receive the exemption for the current tax year.
Ryder Meehan
Ryder Meehan is the Co-Founder of TaxDrop and a Licensed Property Tax Protest Consultant
