Texas Homestead Exemption 2026: How It Works and How to Apply

If you own and live in a home in Texas, the homestead exemption is the single biggest break you can get on your property tax bill. It lowers the taxable value of your home, and since 2025 the amount it takes off for school taxes has grown a lot. Many homeowners still have not filed for it, and many families who inherit a house do not know they can claim it too.

This guide covers what the Texas homestead exemption is, how much it saves, who qualifies, how to apply, and what happens to the exemption when a homeowner passes away.

What Is the Texas Homestead Exemption?

A homestead exemption removes part of your home's value from property taxation. Texas taxes are based on the appraised value your county appraisal district sets each year. The exemption is subtracted from that value before your tax rate is applied, so you pay tax on a smaller number.

It only applies to your residence homestead, which is the home you own and actually live in as your principal residence. Rental houses, vacant lots and second homes do not qualify.

How Much Is the Homestead Exemption in Texas?

The amounts below come from Texas Tax Code Section 11.13, as listed by the Texas Comptroller of Public Accounts.

• School district exemption: $140,000. Every qualifying homeowner gets $140,000 taken off the appraised value for school district taxes. Texas voters approved the increase from $100,000 on November 4, 2025 (Proposition 13), and it applies starting with the 2025 tax year.
• Age 65 or older, or disabled: an extra $60,000. This is on top of the $140,000, for a total of $200,000 off for school taxes.
• Local option exemption: up to 20%. Cities, counties and other taxing units can choose to offer a percentage exemption of up to 20% of your home's value, with a minimum of $5,000. Whether you get this depends on where you live.

Here is a simple example. If your home is appraised at $300,000, your school district only taxes $160,000 of it after the $140,000 exemption. If you are 65 or older, that drops to $100,000.

The 10% Appraisal Cap

Having a homestead exemption also turns on a cap. Under Tax Code Section 23.23, the appraised value of a homestead cannot go up more than 10% a year for tax purposes, no matter how fast the market rises. A house without a homestead exemption does not get that protection.

The Over-65 School Tax Ceiling

Once you qualify for the age 65 or disability exemption, your school district taxes on that home are frozen at the amount you paid in the year you qualified. They can go down, but they will not go up unless you make major improvements. If you pass away, a surviving spouse who is 55 or older can keep the over-65 benefit.

Who Qualifies for a Homestead Exemption?

To qualify, you need to:

• Have an ownership interest in the home.
• Live in it as your principal residence.
• Not claim a homestead exemption on any other property, in Texas or any other state.

The home can include up to 20 acres of land if you use that land as part of your residence. Manufactured homes can qualify too.

How to Apply for the Texas Homestead Exemption

1. Get Form 50-114. This is the Residence Homestead Exemption Application. Your county appraisal district has it on its website, and most districts in large counties, including the Harris Central Appraisal District, let you file online.
2. Match your ID to the property. You will need a Texas driver's license or state ID showing the same address as the home you are claiming.
3. File with your county appraisal district, not the tax office and not the Comptroller.
4. File by the deadline. The general deadline is before May 1 of the tax year.

You only have to apply once. The exemption stays in place as long as you own and live in the home, although the appraisal district can ask you to confirm your eligibility again.

What If You Missed the Deadline?

You can still file. Under Tax Code Section 11.431, the appraisal district must accept a late homestead application if it is filed no later than two years after the date your taxes became delinquent. If it is approved, you can get a refund of the extra tax you paid for those years.

Homestead Exemption After a Homeowner Dies

This is the part many families miss. When a parent or other relative passes away and leaves their home to you, the homestead exemption does not just disappear if someone in the family lives there.

Texas law treats this as heir property. If you inherited the home through a will, a transfer on death deed, or without a will, and you live in it as your principal residence, you can claim the homestead exemption, even if the deed is still in the deceased owner's name. According to TexasLawHelp.org, you would file with your appraisal district:

• Form 50-114, the homestead application.
• Form 50-114-A, an affidavit showing your ownership interest.
• A copy of the prior owner's death certificate.
• A recent utility bill for the home in your name.
• Any court records that show your ownership, if you have them.

Only one heir files. If other heirs also live in the home, they sign the affidavit to authorize you to apply. Since 2020, an heir property owner gets the full exemption, not a partial one, even when several family members share ownership.

Clearing title on an inherited home often takes an affidavit of heirship or probate, and that can take months. The homestead exemption is one of the few things you can put in place right away to keep the tax bill under control while that happens.

When No One Lives in the Inherited House

If nobody in the family lives in the home, it no longer qualifies as anyone's homestead. The exemption and the 10% cap can fall off in the following tax year, and the family ends up paying the full tax bill on an empty house, along with insurance, utilities and upkeep. That is often the point where heirs start weighing their options, from renting it out to selling an inherited house in Texas as-is.

Common Questions About the Texas Homestead Exemption

Do I have to reapply every year?

No. You apply once. The appraisal district may send a letter asking you to confirm you still live there, so open mail from them.

Can I claim a homestead exemption on more than one house?

No. You can only have one homestead at a time, and claiming two is not allowed.

Does the homestead exemption lower my county and city taxes too?

The $140,000 and $60,000 amounts apply to school district taxes. County, city and other taxing units may offer their own exemptions, such as the local option percentage or their own over-65 exemption. Check your appraisal district's website for what applies at your address.

I just bought my home. When can I apply?

Apply as soon as you have moved in and your ID shows the new address. Your appraisal district can tell you which tax year the exemption will start in.

Is the homestead exemption the same as homestead protection from creditors?

No. The property tax exemption lowers your tax bill. Texas also has separate homestead protections that limit when a home can be taken by creditors. They are different laws.

The Bottom Line

If you live in a Texas home you own, and especially if you inherited it, filing Form 50-114 with your appraisal district is one of the easiest ways to cut your property taxes. It is free, you only file once, and you can still claim missed years if you act within the deadline.

This article is general information, not legal or tax advice. Exemption amounts and rules can change, so confirm the details with your county appraisal district or a Texas attorney.