Can You Keep a Texas Homestead Exemption If You Rent Out Your Home? (2026)

Reviewed November 4, 2026.

Usually not. A Texas homestead exemption only applies to the home you live in as your principal residence. If you move out and rent the whole house, you generally lose the exemption, unless you're temporarily away for less than two years, intend to return and haven't set up a new principal residence. Check your occupancy, temporary-absence circumstances and exemption record before relying on the exemption in a rental budget.

Can you have a homestead exemption on a rental property in Texas?

No. To qualify for the general residence homestead exemption, the Texas Comptroller says you must own the home and use it as your principal residence, and you must state that you don't claim a homestead exemption on any other home in or outside Texas. A house you rent out to someone else isn't your principal residence.

The exemption is worth protecting while you live there. School districts must exempt $140,000 of a homestead's value, and other taxing units can add a local option exemption of up to 20%, according to the Comptroller.

What if I'm only away temporarily?

Texas allows a temporary absence. According to the Bexar Appraisal District, you keep your homestead exemption if you:

• don't establish a different principal residence,
• intend to return and live in the home, and
• are away for less than two years.

Homeowners in military service, inside or outside the U.S., or living in a facility that provides care related to health, infirmity or aging can be away longer than two years. If this applies to you, contact your appraisal district about the documents it needs.

Can I rent out a room or half of a duplex and keep my homestead?

The exemption covers the parts of the home you actually use as your residence, not parts used for business or other purposes, according to BCAD. If you live in one side of a duplex and rent the other, expect the exemption to apply only to your side. Ask your appraisal district how it handles a rented room or garage apartment.

What about the 100% disabled veteran exemption on a rental?

The total exemption for a 100% disabled veteran applies to the veteran's residence homestead, so it follows the same principal residence rule. A separate partial disabled veteran exemption under Tax Code §11.22 can apply to any one property the veteran owns, with an amount based on the disability rating, per the Comptroller.

What should I do if I move out and rent my house?

• Tell your appraisal district in writing once the home stops being your principal residence. Texas Tax Code §11.43 requires owners to notify the chief appraiser when an exemption no longer applies.
• Don't wait for a letter. If an exemption is found to have been wrongly allowed, the appraisal district can add back taxes for up to five prior years, and penalties can apply in some cases.
• Apply at your new home. File Form 50-114 with the appraisal district where you now live. Your ID address must generally match the home.

Can I still protest the value of a rental property?

Yes. Any owner can protest their appraised value with the appraisal district, homestead or not. A home that no longer qualifies as a homestead generally loses its 10% homestead appraisal limitation. A separate temporary non-homestead limitation may apply to eligible property; verify the rules and current threshold with your appraisal district.

• Watch for your 2027 notice of appraised value in the spring.
• Know the deadline. May 15, 2027 is a Saturday, so the protest deadline is Monday, May 17, 2027, or 30 days after your notice is delivered, whichever is later.
• Bring evidence to your Appraisal Review Board (ARB) hearing: comparable sales, repair photos and contractor estimates.

See our Tarrant County property tax protest guide. You can file yourself, or protest with TaxDrop. Here's how a Texas property tax consultant works.

Sources: Texas Comptroller, Property Tax Exemptions; Bexar Appraisal District, Property Tax Exemptions Overview; Comptroller Form 50-114; ; Texas Tax Code §§11.13, 11.131, 11.22, 11.43, 23.23 and 41.44.

Related: property tax appeals for accidental landlords.