Texas Homestead Exemptions

This content has been updated as of October 2024.

Everyone in Texas who owns a home is entitled to the homestead exemption, and there’s really no reason not to do it because it will save you money, and not paying as much in taxes is a huge benefit for everyone.

Different exemptions have different tax benefits. Your homestead exemption only applies to the home and the immediate land around it. An agriculture exemption might be more beneficial for the surrounding acreage. If you’re on a home with large acreage, you might have a combination of a homestead exemption and an ag exemption on your property.

The homestead exemption is available in every county in Texas, providing relief from school and property taxes based on your location. If you designate your home as a homestead, then you get that benefit. It does protect you from certain liabilities, so designating your home as a homestead will protect you in the case of litigation or other actions where creditors can’t come after your home, so it is a benefit other than the tax breaks.

There is an additional benefit to getting a homestead exemption in order for a member to get a homestead exemption on their property; they’ll need to go down to the appraisal district and fill out those forms. It’s not something that’s handled at closing, but it can be done right after closing. In order to qualify, you just need to live in the property that you’re claiming the homestead exemption on, and it needs to be your residence. If you have two homes, you can only designate one of those homes as the homestead.

If you have any questions about homestead exemptions, just contact your county tax commissioner.

Frequently Asked Questions

• How much do you save with a homestead exemption?

The amount a person can save with a homestead exemption in Texas depends on the value of your home and the area it is located. Section 11.13 (b) of the Texas tax code requires public school districts to offer a $25,000 exemption on residence homesteads (primary residences) located within their districts. Depending on where you live, you might also qualify for a separate exemption of up to $20,000. As a result, homestead exemptions in Texas can save homeowners hundreds or even thousands of dollars on their property tax bill.

• What does it mean to be homestead exempt?

In Texas being homestead exempt, means that you have received a tax break based on home ownership. If your home is  valued at $300,000 and qualifies for the exemption, you will only pay property taxes as if the home is valued at $275,000. This is because the homestead exemption in Texas reduces the appraised value of your home by $25,000.

• Do I need to apply for a homestead exemption every year?

No. The homestead exemption is a onetime exemption and there is no need to re-apply every year. Reasons you would need to reapply could include moving to a new residence, applying for additional exemptions (over 65, disabled person, etc.), or there are specified requests made by the Chief Appraiser

• How to apply for a homestead exemption?

If you meet the basic eligibility requirements then applying for the exemption is fairly straight-forward. The process for applying for homestead exemptions in Texas varies by county, but applicants should begin by visiting the tax appraisal website for your county. There, you will find your homestead exemption application and instructions for submitting it. Submitting an application is free. As was stated earlier, the good news is once you are issued your homestead exemption, you do not need to apply again to receive it in subsequent tax years.

• Does a homestead in Texas lower property tax? 

Yes. The exemption lowers the amount of your home’s value that’s subject to taxation. Since there is no state property tax in Texas, the amount you’ll save in property taxes depends on your specific county’s local taxation rate.