Homestead Tax Exemption – Texas

Lower the taxable value on your home and reduce your property tax obligation.

Homestead Exemption Overview

What is a homestead exemption? A homestead exemption lowers the taxable value on your home which then reduces your property tax obligation. In Texas, the residential homestead exemption entitles the homeowner to a $25,000 reduction in value for school tax purposes. Counties, cities, and special taxing districts may offer homestead exemptions up to 20% of the total value. Most counties in North Texas do offer this 20% reduction. Furthermore, a county may also offer a $3,000 exemption if it collects for farm-to-market roads or flood control. To qualify for the general residence homestead exemption an individual must have an ownership interest in the property and use the property as the individual’s principal/primary residence. An applicant is required to state that he or she does not claim an exemption on another residence homestead in or outside of Texas.

When to Apply: 

The home’s owner must be an individual (for example: not a corporation or other business entity) and use the home as his or her principal residence on Jan. 1 of the tax year. The completed application and required documentation are due no later than April 30 of the tax year for which you are applying. A late residence homestead exemption application, however, may be filed up to two years after the delinquency date, which is usually Feb. 1.

Where and How to Apply: 

You must apply with your county appraisal district to apply for a homestead exemption. Applying is free and only needs to be filed once. The application can be found on your appraisal district website or using Texas Comptroller Form 50-114.

Only a one-time application is required, unless by written notice, the Chief Appraiser requests the property owner to file a new application. However, a new application is required when a property owner’s residence homestead is changed. If the property has an Age 65 or Older or Disability exemption, the exemption will only stay in place for the year if the qualifying person does not establish a homestead exemption on their new property during that year or if the new owner qualifies for that exemption in their own right.


Resources and Links: