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Texas Homestead Exemption

The Texas homestead exemption reduces your school district taxable value by $100,000 and caps annual appraisal increases at 10%. It's free to file, and if you missed prior years, you can backdate it for up to two years and get a refund on overpaid taxes.

What the Texas Homestead Exemption Does

The residence homestead exemption is the single most valuable tax benefit available to Texas homeowners. It provides three critical protections:

$100,000 School Tax Reduction

Your school district taxable value is reduced by $100,000. At typical ISD rates of $0.90–$1.10 per $100 of assessed value, this saves $900–$1,100 per year on school taxes alone. This exemption is mandatory for all Texas school districts.

Texas Tax Code §11.13(b)

10% Annual Cap on Value Increases

Once your homestead exemption is on file, your appraised value cannot increase by more than 10% per year (plus the value of any new improvements). Without this cap, your appraisal district can raise your value by 20%, 30%, or more in a single year — and in fast-growing Texas markets, many homeowners have experienced exactly that.

Texas Tax Code §23.23

Optional County & City Exemptions

Counties, cities, and special districts may adopt an additional exemption of up to 20% of your property's appraised value (minimum $5,000). Many Texas taxing units have adopted this optional exemption, adding hundreds more in annual savings on top of the school district reduction.

Texas Tax Code §11.13(n)

You Can Backdate It Up to 2 Years

This is the part most homeowners don't know: if you qualified for the homestead exemption in previous years but didn't file, you can apply it retroactively for up to two prior tax years and get a refund on overpaid taxes.

Example

You purchased your home in 2023 and file for homestead in 2026. You can request the exemption for tax years 2024 and 2025. If your school tax savings are $1,000/year, that's a $2,000 refund on taxes you already paid — plus $1,000/year going forward.

How to Backdate

On Form 50-114, Section 5 asks for the date you began occupying the property as your principal residence. Enter the actual date you moved in, not today's date. Your county appraisal district will apply the exemption retroactively from that date, covering up to two prior tax years.

The chief appraiser is required to approve a late application if you owned and occupied the property on January 1 of the tax year you're claiming. There is no penalty for late filing.

Texas Tax Code §11.431 — Late Application for Homestead Exemption

How to File for Homestead Exemption

Filing is free and takes about 5 minutes. You have three options:

1

Online

Visit your county appraisal district's website and look for "Homestead Exemption" or "File Exemptions." Upload a copy of your Texas driver's license showing this property address. Most counties process online applications within 2–4 weeks.

2

By Mail

Download Form 50-114 from the Texas Comptroller. Fill it out, attach a copy of your Texas DL, and mail it to your county appraisal district office.

3

In Person

Bring your completed Form 50-114 and Texas driver's license to your county appraisal district office. No appointment needed in most counties.

Where to File by County

CountyAppraisal DistrictAddressPhone
Montgomery MCAD 109 Gladstell St, Conroe, TX 77301 936-756-3354
Harris HCAD 13013 Northwest Fwy, Houston, TX 77040 713-957-7800
Dallas DCAD 2949 N Stemmons Fwy, Dallas, TX 75247 214-631-0910
Travis TCAD 8314 Cross Park Dr, Austin, TX 78754 512-834-9317

What You Need to File

  • Form 50-114 — Application for Residence Homestead Exemption. Download from the Texas Comptroller.
  • Texas Driver's License or State ID — Must show this property's address. If your DL shows a different address, update it at the DPS before filing.
  • Property account number — Found on your Notice of Appraised Value, tax statement, or your county appraisal district's website.

Who Qualifies

You qualify for the Texas homestead exemption if all three of these are true:

  1. You own the property (your name is on the deed).
  2. The property is your principal residence (where you live most of the year).
  3. You have a Texas driver's license or state ID showing this property's address.

You cannot claim homestead on rental properties, vacation homes, or commercial property. You may only claim one homestead exemption in Texas at a time.

Additional Exemptions You May Qualify For

If you meet additional criteria, you may qualify for exemptions that stack with the general homestead:

ExemptionAdditional BenefitWho QualifiesForm
Over-65 Additional $10,000 school exemption + tax ceiling freeze Homeowners age 65+ 50-114
Disabled Person Additional $10,000 school exemption Homeowners with qualifying disability 50-114
Disabled Veteran $5,000–$12,000 or 100% exemption Veterans with service-connected disability 50-114

Deadline

The standard deadline is April 30 of the tax year. However, late applications are accepted without penalty for up to two years after the delinquency date (February 1 of the year following the tax year). This means you effectively have until January 31 two years later.

If you're reading this after April 30, you can still file. The exemption will apply to the current tax year and can be backdated to the two prior years you qualified.

Texas Tax Code §11.431(a)

How Much Does the Homestead Exemption Save?

Savings depend on your county's tax rates. Here are typical annual savings by county from the $100,000 school district exemption alone:

CountyTypical ISD RateSchool Tax SavingsWith Optional County Exemption
Montgomery (MISD) ~$1.09/$100 ~$1,090/year ~$1,400–$1,600/year
Harris (HISD) ~$0.95/$100 ~$950/year ~$1,200–$1,500/year
Dallas (DISD) ~$1.04/$100 ~$1,040/year ~$1,300–$1,600/year
Travis (AISD) ~$0.97/$100 ~$970/year ~$1,200–$1,500/year

Savings are approximate and based on 2025–2026 published tax rates. Your actual savings depend on your specific taxing jurisdictions and any optional exemptions your county has adopted. The 10% cap on value increases provides additional long-term savings not reflected in these figures.

Sources

  1. Texas Comptroller — Residence Homestead Exemption FAQ
  2. Form 50-114 — Application for Residence Homestead Exemption (PDF)
  3. Texas Tax Code §11.13 — Residence Homestead Exemption
  4. Texas Tax Code §23.23 — Limitation on Appraised Value of Residence Homesteads
  5. Texas Tax Code §11.431 — Late Application for Homestead Exemption
  6. Texas Tax Code §11.43 — Application for Exemption (procedures & deadlines)

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