Texas Homestead Exemption
If you own and live in your home in Texas, you may be eligible for one of the most valuable forms of property tax relief the Texas Homestead Exemption.
This exemption lowers the taxable value of your home, reducing the amount of property taxes you owe each year.
In 2025, Texas homeowners can claim both a general residence exemption and additional benefits for seniors, disabled individuals, and veterans.
This guide explains how the Texas Homestead Exemption works, who qualifies, how to apply, and how it can save you money on your annual property tax bill.
Step 1: What Is a Texas Homestead Exemption
A homestead exemption reduces the taxable value of your primary residence for property tax purposes.
It does not lower your home’s market value, but it decreases the portion of your home value used to calculate property taxes.
Example:
If your home’s appraised value is $350,000 and you receive a $40,000 homestead exemption, your property taxes are calculated on $310,000 instead of the full amount.
This exemption applies only to your principal residence the home where you live most of the year and cannot be claimed on multiple properties.
Step 2: Eligibility Requirements
To qualify for the Texas Homestead Exemption, you must meet these requirements:
- Ownership:
- You must own the property on January 1 of the tax year for which you are applying.
- Primary Residence:
- The property must be your principal home where you live and receive mail, vote, and register your vehicle.
- Individual Applicant:
- The exemption is granted to individuals, not corporations or partnerships.
- Identification Match:
- Your Texas driver’s license or state ID must show the same address as the property for which you’re applying.
Example:
If you purchased a new home in 2024 and moved in before December 31, you can apply for the 2025 homestead exemption.
Step 3: Types of Homestead Exemptions in Texas
Texas offers several homestead exemptions depending on your situation:
- General Residence Homestead Exemption
- Reduces the taxable value of your home by a minimum of $40,000 from school district taxes.
- Over-65 or Disabled Person Exemption
- Provides an additional $10,000 reduction in taxable value and freezes school district taxes, preventing increases while you live in the home.
- Disabled Veteran or Surviving Spouse Exemption
- Veterans with a disability rating of 100% can receive a full property tax exemption.
- Surviving spouses of disabled veterans may also qualify for a continuation of benefits.
- Partial Exemptions by Local Jurisdictions
- Cities, counties, and special districts may offer additional percentage-based exemptions on top of the state minimum.
Step 4: How to Apply for the Texas Homestead Exemption
- Obtain the Application Form
- Use Form 50-114, the “Application for Residence Homestead Exemption,” available from your county appraisal district.
- Complete the Application
- Include your property address, ownership details, and property ID number from your appraisal notice.
- Provide Identification
- Attach a copy of your Texas driver’s license or state ID showing the same address as the property.
- Submit the Application
- File with your county appraisal district by April 30, 2025. Late applications may be accepted for up to two years after the deadline under specific conditions.
- Keep Proof of Filing
- Retain copies of your application and acknowledgment receipt for records.
Step 5: Maintaining Your Homestead Exemption
Once granted, your homestead exemption automatically renews each year as long as:
- You continue to occupy the home as your primary residence.
- You do not move or change ownership.
You must notify your appraisal district if:
- You move to a new residence.
- The property ownership changes.
- You no longer meet the eligibility criteria.
Failure to update information may result in penalties or loss of the exemption.
Step 6: Additional Savings Opportunities
Homeowners who qualify for the homestead exemption may also benefit from:
- Senior and Disabled Tax Ceiling: Freezes the school district portion of property taxes.
- Partial Local Exemptions: Offered by cities or counties that adopt optional homestead provisions.
- Disaster Damage Exemptions: Temporary exemptions may be available if your home sustains storm or flood damage.
Properly claiming all available exemptions can lead to significant annual savings.
Step 7: Common Mistakes to Avoid
- Incorrect or outdated mailing addresses.
- Applying for more than one homestead exemption.
- Failing to update records after moving.
- Missing the April 30 filing deadline.
Always double-check your appraisal notice and confirm your exemption is correctly applied on your annual property tax statement.
Conclusion
The Texas Homestead Exemption is one of the most effective ways for homeowners to reduce property taxes and protect their home’s equity.
By understanding the eligibility rules, filing correctly, and maintaining your exemption, you can save thousands each year while staying fully compliant with Texas property tax laws.
Call to Action
For personalized guidance on filing your Texas Homestead Exemption or reviewing your property tax savings opportunities, contact Anshul Goyal, CPA EA FCA, a U.S.-licensed Certified Public Accountant, Enrolled Agent authorized to practice before the IRS, and cross-border tax expert assisting Texans with compliance and financial optimization.
Disclaimer
This blog is for informational purposes only and should not be considered legal or tax advice. Always consult a licensed CPA or property tax professional before filing or disputing exemptions.
Top 5 FAQs
- When is the deadline to apply for a Texas Homestead Exemption?
April 30 of the tax year for which you’re applying. - Can I claim the exemption on a rental or secondary home?
No. The property must be your primary residence. - Do I need to reapply each year?
No. Once granted, the exemption renews automatically unless you move or your ownership changes. - Can both spouses apply for separate homesteads?
No. Only one homestead exemption is allowed per married couple. - What documents are required to apply?
Form 50-114, a valid Texas ID, and proof of residence such as a utility bill or voter registration.
About Our CPA
Anshul Goyal, CPA EA FCA is a Certified Public Accountant licensed in the United States, Enrolled Agent admitted to practice before the IRS, and cross-border tax expert helping Texas residents with homestead exemptions, property tax savings, and IRS compliance.