Texas $200,000 Homestead Exemption: Is It Law in 2026?

Reviewed November 4, 2026.

No, Texas has not raised the general school homestead exemption to $200,000. On Nov. 2, 2026, Comptroller Don Huffines reported that net state sales tax revenue hit $4.8 billion in October — up 13.3% from a year earlier — and said those collections give lawmakers another chance to prioritize property-tax relief. Coverage of that release revived talk of a $200,000 school homestead exemption. Here's what is law today, what a higher exemption would take, and what homeowners can do now.

What did the Comptroller report?

According to the Texas Comptroller's Nov. 2, 2026 release, October net state sales tax revenue was $4.8 billion, 13.3% above October 2025. Construction remittances were up 38% and manufacturing 33%. Calendar year-to-date net sales tax revenue was $44.4 billion, up 8.4%.

The Comptroller linked the revenue growth to lawmakers’ ability to consider further relief. The release itself did not enact or propose a specific $200,000 general exemption.

What is the Texas school homestead exemption in 2026?

Under Tax Code §11.13, as summarized by the Comptroller:

• School districts must provide a $140,000 residence homestead exemption.
• Homeowners age 65 or older, or with a qualifying disability, receive an additional $60,000 school exemption.
• Taxing units may also adopt a local optional homestead exemption of up to 20% of appraised value (minimum $5,000).

Example: on a home appraised at $300,000 with only the general school exemption, school taxes apply to $160,000 of value ($300,000 − $140,000).

For filing steps, see our Texas homestead exemption guide.

What would a $200,000 exemption change?

Raising the general school exemption from $140,000 to $200,000 would shelter another $60,000 of value from school taxes. On a home with $300,000 of value before exemptions and no other adjustments, school taxable value would fall from $160,000 to $100,000.

Hypothetical illustration only: at $1.00 per $100 of taxable value, that extra $60,000 of exemption would change the school line by about $600 a year. Actual bills depend on your school district's adopted rate, other exemptions and local options. This is not a promise of any reduction.

City, county and special-district taxes would not automatically drop. Those units use separate exemption rules.

What would it take to raise the exemption?

The $140,000 general school homestead exemption sits in the Texas Constitution and Tax Code. Increasing it typically requires:

• Legislation setting the new amount and school-finance replacement funding
• A constitutional amendment approved by voters
• Clarity on whether the extra $60,000 senior/disability exemption stays stacked on top

Until that happens, treat $200,000 as a debate topic for the 2027 legislative session — not current law. The Dallas Express noted the same distinction when covering Monday's sales-tax report.

What should Texas homeowners do now?

• Confirm your homestead is on file with your county appraisal district so the $140,000 school exemption (and any senior/disability or local optional exemption) shows on your account.
• Open your 2026 tax statement when it arrives and check every taxing unit line.
• Plan for 2027 protests. Rate debates don't replace your right to challenge appraised value at the CAD and, if needed, the Appraisal Review Board (ARB). The 2027 protest deadline is generally Monday, May 17, 2027, or 30 days after your notice is delivered, whichever is later.

County guides such as our Dallas County property tax protest guide and Harris County property tax protest guide walk through the process. If you'd rather not handle evidence and the ARB hearing yourself, TaxDrop can protest for you.

Sources: Texas Comptroller, Oct. 2026 sales tax revenue (Nov. 2, 2026); Texas Comptroller, Property Tax Exemptions; Dallas Express; Texas Tax Code §11.13.