Texas Homestead Exemption & Property Tax Guide (2026)

How do the 2026 homestead exemption changes affect my property taxes in Texas?

Texas homeowners have long relied on the homestead exemption to soften the blow of high property taxes. In 2026 the state rolled out its largest property tax relief package ever: the standard homestead exemption for school district taxes jumped from $100,000 to $140,000, and seniors or disabled homeowners gained an additional $60,000 exemption. Combined with one‑time rate compression and other reforms, the average homeowner could save more than $1,700 per year. Understanding how these new rules work — and filing the right paperwork on time — will determine whether you reap the benefits.

What changed in 2026

• $140,000 general homestead exemption. Senate Bill 4 increased the mandatory school district homestead exemption from $100,000 to $140,000, lowering the taxable value of your home by an extra $40,000.
• $60,000 senior/disabled exemption. Senate Bill 23 boosted the additional exemption for homeowners 65 or older or with disabilities from $10,000 to $60,000. Combined with the general exemption, seniors can exempt up to $200,000 of their home’s value from school taxes.
• Temporary rate cut. House Bill 8 provided a one‑year school tax rate compression of $0.0331 per $100 of value. For many homeowners this translates to a few hundred dollars in additional savings.
• Business personal property exemption. The amount of taxable business equipment exempt from property taxes increased from $2,500 to $125,000, delivering significant relief for small business owners.
• Protest reforms and refund protections. New laws require more transparency from appraisal districts and speed up refund processing when you overpay property taxes.

Why filing your exemption matters

Unlike deductions that reduce your federal taxable income, property tax exemptions lower the appraised value on which your local tax bill is calculated. Filing for the homestead exemption caps your home’s annual appraisal increase at 10% and provides a “tax ceiling” for seniors and disabled homeowners, freezing school taxes at the current level. Missing the deadline can cost you thousands each year, but Texas allows retroactive filing for up to two years. For new homeowners, you no longer need to wait until January 1st of the following year — you can file as soon as you occupy the home.

How to apply for your homestead exemption

1. Verify your ID. Your Texas driver’s licence or ID must show the same address as the property you’re claiming. If it doesn’t, update it before filing.
2. Download the form. Use Form 50‑114, the Application for Residence Homestead Exemption, from the Texas Comptroller’s website.
3. File with your County Appraisal District (CAD). Submit the form by April 30 (some counties extend to May 1). Many CADs allow online filing. Keep proof of submission for your records.
4. Check your status. Use your CAD’s property search tool to verify that the exemption has been applied. Don’t assume your lender or title company filed for you.

Example savings

Imagine a Houston home appraised at $450,000 with a school district tax rate of 1.2%. Before 2026, the $100,000 homestead exemption lowered the taxable value to $350,000, resulting in a school tax bill of about $4,200. With the new $140,000 exemption, the taxable value drops to $310,000. At 1.2%, the school tax now comes to $3,720 — saving the homeowner $480 per year. Seniors or disabled homeowners can deduct an additional $60,000, reducing taxable value to $250,000 and saving another $720, for a total of $1,200 in annual savings.

Additional tips

• Don’t forget other exemptions. If you’re a veteran, surviving spouse, or own business personal property, additional exemptions may apply. Check the Texas Comptroller’s resources or consult an attorney for complex situations.
• Appeal your appraisal if necessary. You have the right to protest your assessed value each year. With new reforms, appraisal review boards must provide greater transparency.
• Keep records. Once granted, most homestead exemptions automatically renew. However, you should keep proof of residency and monitor your tax statements to ensure the exemption remains applied.

Frequently asked questions

• Who qualifies for the new senior exemption? Homeowners aged 65 or older or those with a disability as defined by the Social Security Administration qualify for an extra $60,000 exemption on top of the general homestead exemption.
• Can I still file if I missed the deadline? Yes. Texas law allows homeowners to apply retroactively for up to two years after the delinquency date, often February 1st of the tax year.
• Does the exemption reduce my tax rate? No. Exemptions reduce your home’s taxable value. School district tax rates are set separately and can change year to year.
• Do I need to reapply every year? Typically, no. Once approved, the homestead exemption automatically renews. Reapply only if requested by your appraisal district or if you move to a new home.