Texas Homestead Exemption 2026
Texas voters approved a $140,000 school district homestead exemption in November 2025. How it actually affects your mortgage payment and escrow:
The Texas homestead exemption is a property tax break that removes part of your primary home's appraised value from school district taxation, and for 2026 the general school-district exemption is $140,000. Here is how to file the homestead exemption in Texas: you submit Form 50-114 to your county appraisal district one time, and the homestead exemption deadline in Texas is April 30 for the current tax year.
It fits any Texas homeowner who lives in the home as their principal residence, including Austin-area buyers whose monthly mortgage escrow drops once the exemption is approved.
The Texas homestead exemption removes a portion of your home's appraised value from school district property taxes. As of 2026, the general school-tax exemption is $140,000, raised from $100,000 by Proposition 13, which Texas voters approved in November 2025 (implementing legislation: Senate Bill 4, 89th Legislature).
Additional exemptions stack on top of the general homestead:
- Homeowners over 65 or qualifying as disabled get an additional $60,000 school-tax exemption.
- Disabled veterans qualify for separate graduated exemptions ranging from $5,000 to $12,000 (Tax Code §11.22), plus a full 100% homestead property tax exemption for veterans rated 100% disabled or individually unemployable (Tax Code §11.131).
Why it matters: the exemption directly reduces the property tax portion of your monthly mortgage escrow.
Key facts
- $140,000: 2026 general school district homestead exemption (Tax Code §11.13(b), raised from $100,000 by Prop 13 / SB 4, Nov 2025)
- $60,000 additional: over-65 or disabled school-tax exemption (Tax Code §11.13(c)), for a combined $200,000 reduction
- Disabled veteran exemption per Tax Code §11.22: graduated $5,000–$12,000 based on disability rating (10–29% = $5,000; 30–49% = $7,500; 50–69% = $10,000; 70–100% = $12,000)
- 100% disabled veteran exemption per Tax Code §11.131: full property tax exemption on the homestead for veterans rated 100% disabled or individually unemployable by the VA
- Surviving spouses of veterans killed in the line of duty receive a full exemption on the residence homestead if unmarried (Tax Code §11.133); unmarried surviving spouses of disabled veterans qualify for partial exemptions
- Application required, just once. File Form 50-114 with your county appraisal district. No annual re-filing needed after approval.
- Primary residence only. Investment properties, second homes, and vacant land don't qualify.
- April 30 deadline to apply for the current tax year (late applications accepted up to 2 years post-delinquency)
2026 Texas homestead exemption types
Comparison of major Texas homestead exemption categories. Local taxing units (cities, counties, special districts) may offer additional optional exemptions on top.
| Exemption | Amount | Eligibility | Citation |
|---|---|---|---|
| General school district | $140,000 | Any Texas homeowner on primary residence | Tax Code §11.13(b) |
| Over-65 or disabled (additional) | $60,000 | Age 65+ or disabled, on top of general homestead | Tax Code §11.13(c) |
| Disabled veteran 10–29% | $5,000 | VA-rated disabled veteran, any owned property | Tax Code §11.22(a) |
| Disabled veteran 30–49% | $7,500 | VA-rated disabled veteran | Tax Code §11.22(a) |
| Disabled veteran 50–69% | $10,000 | VA-rated disabled veteran | Tax Code §11.22(a) |
| Disabled veteran 70–100% | $12,000 | VA-rated disabled veteran | Tax Code §11.22(a) |
| Veteran 65+ with 10%+ rating, blind, or lost limb | $12,000 | Qualifying disabled veteran 65 or older | Tax Code §11.22(b) |
| 100% disabled veteran | Full exemption | VA-rated 100% disabled or individually unemployable; on homestead | Tax Code §11.131 |
| Surviving spouse of veteran killed in line of duty | Full exemption | Unmarried surviving spouse; on homestead | Tax Code §11.133 |
Background and context
The Texas school district homestead exemption has been raised repeatedly over the past decade. The exemption was:
- $25,000 from 2015 to 2022,
- $40,000 from 2022 to 2023,
- $100,000 from 2023 to 2025,
- and is now $140,000 for 2026 forward.
Proposition 13 on the November 2025 ballot raised it from $100,000 to $140,000, and the implementing legislation (Senate Bill 4, 89th Legislature) was signed into law alongside. The increase is retroactive to tax year 2025, so homeowners with an existing approved exemption should see the $140,000 amount reflected on their 2025 and 2026 tax bills without re-filing.
The over-65 additional exemption also got a substantial increase. The standalone over-65 school exemption went from $10,000 to $60,000 in this round, meaning seniors and disabled homeowners now exempt a combined $200,000 from their school district assessed value. For a senior with a Texas-median home value, that's a meaningful share of the property completely off the school district tax roll.
The disabled veteran exemption schedule under Tax Code §11.22 hasn't changed in this round. It's the same graduated $5,000–$12,000 schedule that's been in place. What's different from the general homestead is that the §11.22 exemption can be applied to any one property the disabled veteran owns. It's not strictly tied to the homestead.
The full-exemption rule for 100% disabled veterans under §11.131 is separate and applies only to the homestead, but exempts it from all property tax, not just school district tax.
Practically, for a mortgage: most Texas loans escrow property taxes monthly. The homestead exemption reduces the school district portion of the annual property tax bill, which lowers the monthly escrow. For an Austin-area home valued at the metro median, the $140,000 exemption saves several thousand dollars per year on school taxes alone, and the monthly mortgage payment drops accordingly.
On a refinance or purchase pre-approval, accurate exemption assumptions matter for the debt-to-income calculation. I price files using the verified post-exemption tax bill, not the unadjusted gross.
One quirk worth flagging: the exemption follows the property only after the appraisal district approves the application. If you buy a home where the prior owner had an exemption, you have to file your own application. The exemption from the prior owner doesn't transfer.
Sources & methodology
All figures verified against Texas Comptroller and Texas Tax Code primary sources as of May 11, 2026. This page is reviewed annually and after any legislative or constitutional change affecting the exemption amounts.
- Texas Comptroller: Property Tax Exemptions overview
- Texas Comptroller: Disabled Veteran and Surviving Spouse Exemptions FAQ (graduated schedule)
- Texas Comptroller: 100% Disabled Veteran and Surviving Spouse FAQ
- Texas Constitution Article VIII: Taxation and Revenue
- Texas Proposition 13 (2025): Increase Homestead Property Tax Exemption Amendment
- Texas Senate Bill 4 (SB 4), 89th Legislature, 2025: implementing legislation for Prop 13
- Texas Tax Code Chapter 11 (Taxable Property and Exemptions): statutory authority for all property tax exemptions
Questions I get about the Texas homestead exemption
What is the Texas homestead exemption?
The Texas homestead exemption removes a portion of the appraised value of your primary residence from property taxation. The largest piece is the school district homestead exemption, which is $140,000 for 2026 under Tax Code Section 11.13(b). Cities, counties, and special districts can also offer their own optional homestead exemptions.
How much is the 2026 exemption?
$140,000 off school district property taxes for 2026, raised from $100,000 by Proposition 13 (November 2025) and implementing legislation Senate Bill 4 (89th Legislature). The increase is retroactive to tax year 2025 and forward. Homeowners over 65 or qualifying as disabled get an additional $60,000 school exemption on top, for a combined $200,000 in school-tax value reductions.
How do I apply?
File a Residence Homestead Exemption Application (Texas Comptroller Form 50-114) with your county appraisal district. The form can be filed in person, by mail, or online with most central appraisal districts. There's no fee. You only need to file once. The exemption persists year over year as long as the property remains your primary residence.
When's the deadline?
April 30 of the tax year you want the exemption applied. Late applications can be filed up to two years after the delinquency date and may still receive the exemption retroactively. For new homeowners, you generally apply for the year you moved in, and the exemption begins that tax year if filed timely.
Can I claim the exemption on a rental property?
No. The homestead exemption applies only to the borrower's primary residence (the homestead). Investment properties, second homes, and vacant land don't qualify. The property must be the homeowner's principal place of residence as of January 1 of the tax year (with some exceptions for new owners).
What if I'm over 65?
You get an additional $60,000 school district exemption on top of the $140,000 general homestead exemption, for a combined $200,000 reduction in your school-tax value. You also become eligible for a tax ceiling that freezes the school tax dollars (not the rate) at the level when you turned 65. Other local taxing units may offer separate over-65 exemptions and freezes.
What if I'm a disabled veteran?
Texas Tax Code §11.22 provides a graduated property tax exemption based on disability rating: $5,000 at 10-29% rating, $7,500 at 30-49%, $10,000 at 50-69%, and $12,000 at 70-100%. Veterans 65 or older with at least a 10% rating receive the $12,000 exemption regardless of tier. Tax Code §11.131 provides a separate full property tax exemption on the homestead for veterans rated 100% disabled or individually unemployable by the U.S. Department of Veterans Affairs.
How does the exemption affect my mortgage payment?
Most Texas mortgages escrow property taxes monthly. The homestead exemption reduces the school district portion of the annual property tax bill, which directly lowers the monthly escrow amount, which lowers the total monthly mortgage payment. The savings for the average Texas home are several thousand dollars per year on school taxes alone.
Do I have to reapply each year?
No. Once approved, the homestead exemption stays in place year after year as long as the property remains your primary residence and you remain the owner. You only need to refile if you move, the deed changes, or your appraisal district requests re-verification (which some districts do periodically).
What's the difference between general homestead and disability exemptions?
The general homestead exemption is the standard $140,000 school district exemption available to any Texas homeowner on their primary residence. The disability exemptions (over-65, disabled person, disabled veteran, 100% disabled veteran) are additional on top of the general homestead and have separate eligibility requirements. A 100% disabled veteran exemption under §11.131 fully exempts the homestead from all property taxes, not just school taxes.
How do I file a homestead exemption in Texas?
To file your Texas homestead exemption, complete the Residence Homestead Exemption Application (Comptroller Form 50-114) and submit it to the county appraisal district where the home is located. Most central appraisal districts let you file online, by mail, or in person, and there is no fee.
You attach a copy of your Texas driver's license or state ID, and the address on the ID must match the property address. In the Austin area that means filing with the Travis, Williamson, Hays, Bastrop, or Caldwell county appraisal district depending on where the home sits.
What is the homestead exemption deadline in Texas for 2026?
The general deadline to file a Texas homestead exemption for the current tax year is April 30. If you miss it, the Tax Code allows a late application up to two years after the date the taxes for that year became delinquent, and the appraisal district can apply the exemption retroactively.
Because the increase to $140,000 is retroactive to tax year 2025, homeowners who already had an approved exemption do not need to refile to receive the higher amount.
Can I file a Texas homestead exemption the year I buy my home?
Yes. Texas lets a new homeowner apply for the residence homestead exemption as soon as they own and occupy the property as their primary residence, rather than waiting for the next January 1.
The exemption from the previous owner does not transfer to you, so filing your own Form 50-114 promptly after closing is important. I flag this for every buyer at closing because the timing affects the property tax portion of the escrow estimate on the loan.
Does the 2026 Texas homestead exemption lower my mortgage escrow?
Yes, indirectly. The homestead exemption reduces the school district share of your annual property tax bill, and because most Texas loans collect property taxes through a monthly escrow account, a lower tax bill means a lower monthly escrow and a lower overall mortgage payment.
When I structure a conventional loan or any escrowed file, I base the estimate on the verified post-exemption tax figure so the payment quoted up front lines up with what the servicer collects after closing.
What is the Texas homestead exemption if I am over 65 or disabled?
Texas homeowners who are 65 or older or who qualify as disabled receive an additional $60,000 school district exemption on top of the $140,000 general homestead exemption, for a combined $200,000 reduction in school-tax value.
They also gain a school-tax ceiling that caps the school tax dollars at the level set when they turned 65 or qualified, even if the home's value rises later. You apply for the over-65 or disabled exemption the same way, using Form 50-114 with your county appraisal district.
How much does the homestead exemption save in Texas?
The general exemption removes $140,000 of your home's appraised value from the school district portion of your property taxes, so your actual savings equal that $140,000 multiplied by your local school district tax rate.
Because school tax rates differ by district, the dollar savings differ from one Texas county to the next, but it generally works out to several thousand dollars a year for a typical Austin-area home. Homeowners who are 65 or older or disabled remove a combined $200,000 from their school-tax value, which saves even more.
When I run a payment estimate, I apply the post-exemption tax figure so the savings show up in your monthly escrow rather than as a surprise after closing.
How does the homestead exemption work in Texas?
The homestead exemption works by subtracting a set amount of value from your primary home before the school district calculates your property tax, so you are taxed on a lower assessed value. For 2026 the general school-district exemption is $140,000, and once your county appraisal district approves your one-time Form 50-114 application, the reduction carries forward each year as long as the home stays your primary residence.
It also caps how fast your taxable homestead value can rise year to year. For a financed home, the lower tax bill flows straight into a lower monthly escrow payment, which is why I build the verified post-exemption number into every Texas file.
Need a Texas-accurate payment estimate?
Send me your scenario. I'll price the file using the verified post-exemption tax bill so the monthly payment estimate actually matches what closing will look like.