The Texas homestead exemption: what it saves and how to file
The biggest property tax break in Texas is free and takes about 10 minutes. Here's what changed in 2025 and how to claim it.
Published 2026-10-21 · 4 min read · Source: Texas Comptroller of Public Accounts; Texas Tax Code §§11.13, 11.42, 11.43 and 23.23; Propositions 11 and 13 (approved November 2025). Confirm details with your appraisal district.
If you own the home you live in, the residence homestead exemption is the single biggest property tax break in Texas. Filing is free, and you can do it online the week you close.
What it does
- School district taxes: $140,000 comes off your home's taxable value. That's up from $100,000 after Texas voters approved Proposition 13 in November 2025.
- Age 65 or older, or disabled: an additional $60,000 off for school taxes (up from $10,000 under Proposition 11), plus a ceiling that caps your school tax amount.
- A 10% cap: once the exemption is in place, your home's taxable value can't rise more than 10% a year. For a new owner, the cap starts January 1 of the year after you buy.
- Cities, counties and other local taxing units may add their own homestead exemptions, often a percentage of value. Your appraisal district lists what applies to your address.
A quick example
On a home appraised at $450,000, your school district taxes $310,000 of value instead of $450,000. At a school tax rate near $1.00 per $100 of value, that's roughly $1,400 a year saved on school taxes alone, before any city or county exemptions.
Who qualifies
- You own the home and live in it as your principal residence.
- You claim only one homestead at a time.
- The address on your Texas driver's license or state ID matches the home's address.
How to file
- Use Form 50-114, the Residence Homestead Exemption Application, with your county appraisal district. Most districts let you file online.
- Include a copy of your Texas driver's license or state ID showing the property address.
- File as soon as you close. If the previous owner didn't already have a homestead exemption that year, you can get it for the rest of the year you buy.
- The usual deadline is April 30 of the tax year. Late applications can be accepted up to two years after the taxes become delinquent.
- It's free. Ignore mailers that offer to file it for a fee.
Where to file in DFW
Dallas CAD (dallascad.org), Collin CAD (collincad.org), Denton CAD (dentoncad.com), Tarrant Appraisal District (tad.org), Rockwall CAD (rockwallcad.com).
Moving from out of state? Get your Texas driver's license first (you have 90 days after moving), then file your homestead so the addresses match.