Understanding the Texas Homestead Exemption: Save Big on Property Taxes in 2026
Owning a home in Texas is a dream for many — but with some of the highest property taxes in the nation, understanding how to minimize your tax bill is essential. Fortunately, the Texas Homestead Exemption offers one of the most valuable forms of tax relief available to homeowners in the Lone Star State.
Whether you’re a first-time buyer in Austin, a long-time Hill Country homeowner, or planning your next real estate move, this guide breaks down what the Homestead Exemption is, how it works, and how you can take advantage of it.
What Is the Texas Homestead Exemption?
The Texas Homestead Exemption is a property tax benefit that reduces the taxable value of your primary residence, lowering the amount of property taxes you owe each year. In simple terms: the lower your taxable value, the less you pay in taxes.
Starting with the 2026 tax year, Texas homeowners can benefit from an expanded homestead exemption after voter-approved changes increased the amount of school tax relief homeowners receive — meaning even more potential savings for Texas residents.
Who Qualifies for a Homestead Exemption in Texas?
To be eligible for the Homestead Exemption, you must:
- Own and occupy the home as your primary residence as of January 1st of the tax year.
- Be an individual homeowner (not a trust or business entity).
- Have matching identification (e.g., driver’s license/Texas ID) with your homestead address.
Once approved, the exemption automatically renews annually as long as you continue to own and live in the home — no need to reapply every year.
Types of Homestead Exemptions & Potential Savings
Texas offers multiple layers of exemptions, including:
✔ General Residence Homestead Exemption
✔ Over-65 & Disabled Homeowner Exemptions
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Homeowners age 65 or older — and those with qualifying disabilities — may receive additional exemptions plus a tax ceiling, which can lock in your school tax amount year after year.
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✔ Disabled Veteran Exemption
✔ Local Optional Exemptions
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Some counties and cities offer additional homestead exemptions that further reduce taxable value on local portions of your tax bill.
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How to Apply for Your Homestead Exemption
Getting started is simple:
- Download the correct form — typically Form 50-114: Application for Residence Homestead Exemption — from your county appraisal district.
- Gather proof — a copy of your Texas driver’s license or ID showing your homestead address.
- Submit your application by April 30 of the tax year for which you’re applying.
Even if you miss the deadline, many appraisal districts allow late filing up to two years after the deadline — potentially unlocking savings retroactively.
Why Every Texas Homeowner Should File
With rising property values across Texas, the Homestead Exemption is a critical strategy for reducing your annual tax burden and protecting your home’s equity — especially if you plan to stay in your home long-term.
Example:
If your home is appraised at $400,000 and your exemptions reduce taxable value by $140,000, you only pay taxes on $260,000 — potentially saving hundreds to thousands each year, depending on local tax rates.
Need Help with Your Homestead Exemption? We’re Here for You
At THE AGENCY AUSTIN we understand Texas real estate — including the tax benefits every homeowner should leverage. For more information on homestead exemptions, application and how to file, visit Texas Comptroller
Make Your Next Move with The Agency Austin.
Whether you’re buying your dream home, selling, or investing in Austin’s thriving real estate market, our team is ready to help you find the perfect place to call home.
Contact THE AGENCY AUSTIN today.
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