What the Exemption Is Worth Now
The Texas homestead exemption removes a chunk of your home's value from taxation, and it has grown dramatically. After the constitutional amendments approved by voters in November 2025:
| Exemption | Amount (school taxes) | Who gets it |
|---|---|---|
| General residence homestead | $140,000 | Every owner-occupier, any age |
| Over-65 or disabled add-on | +$60,000 (total $200,000) | Homeowners 65+ or with a qualifying disability |
School district taxes are the largest slice of a Texas property tax bill, so this is real money: on a typical combined rate, the general exemption saves well over a thousand dollars a year, more for seniors. Counties, cities, and special districts can offer their own additional homestead exemptions on top (many offer a percentage-based one), which apply automatically once your homestead status is on file.
The exemption also unlocks two protections that are easy to overlook:
- The 10% appraisal cap: once you have a homestead exemption, your assessed value can't rise more than 10% per year, no matter what the market does. In fast-appreciating neighborhoods this cap is worth more than the exemption itself.
- The over-65 school tax ceiling: at 65, your school district taxes are frozen at that year's amount, they can go down, but never up (unless you add improvements). The ceiling even transfers proportionally if you move within Texas. See our senior freeze guide for how this compares to other states.
Who Qualifies
- You own the home (full or partial interest, including via certain trusts) and it's your principal residence on January 1, or from the date you acquire it, new buyers no longer wait for the next January.
- One homestead per person/couple, in Texas or anywhere else. You can't claim Texas and another state simultaneously.
- Your Texas driver's license or state ID must show the property's address, the most common reason applications bounce.
- For the over-65 add-on: automatic qualification the year you turn 65 (apply once); for disability, a qualifying Social Security disability status or equivalent.
How to File (Free, in Minutes)
- Find your county appraisal district (CAD), the entity is "<County> Central Appraisal District". Most large CADs (Harris, Dallas, Tarrant, Travis, Bexar, Collin) accept online filings.
- Complete Form 50-114 (Residence Homestead Exemption Application), the same form covers the general, over-65, and disability exemptions. Check every box you qualify for.
- Attach your Texas ID showing the property address.
- Submit before April 30 for the standard cycle, but don't panic if you're late: late applications are accepted up to two years after the delinquency date, and approved ones are applied retroactively with refunds for what you overpaid.
- Verify it stuck. Look up your property on the CAD's website a few weeks later; the exemption codes should appear on your record. You only file once, it renews automatically while you live there (CADs periodically ask for re-verification by mail; respond to those).
Never Pay Anyone to File This
Every spring, official-looking mailers offer to file your homestead exemption for $50–$100, sometimes with fake deadlines and "processing fees." The Texas application is free, always, directly from your CAD. The attorney general and CADs warn about these operations every year. If a letter demands payment for a "homestead designation" or "exemption service," it's junk mail. (More patterns to watch in our guide to consultants and scams.)
Common Mistakes That Cost Texans Money
- Never filing. New buyers assume it's automatic (it isn't) or that the title company handled it (they usually don't). If you bought recently, check your CAD record today, and remember the two-year retroactive window if you missed it.
- Not filing the over-65 add-on at 65. The extra $60,000 and the school tax ceiling require checking that box. The ceiling is set in your first qualifying year, so delay literally locks in a higher frozen amount.
- Losing the cap by moving. The 10% appraisal cap resets to full market value on a new home. Budget with the uncapped number when you buy; our pre-purchase estimation guide covers this trap.
- Ignoring the appraisal notice. The exemption shrinks the taxable value, but if the appraised value itself is inflated you should also protest, exemption and protest stack. See how to protest in Texas.
Bottom Line
If you own and occupy a home in Texas and haven't confirmed your homestead exemption is on file, that's a free $140,000 off your school taxable value ($200,000 at 65, plus a frozen school bill) waiting on a one-page form. File Form 50-114 with your CAD, verify it appears on your record, never pay a mailer for it, and check your county's actual rates on our Texas property tax pages.