Allen Markel, REALTOR® · Texas Premier Realty

General

What is the Texas homestead exemption and how much does it save?

Answered by Allen Markel, REALTOR®, Texas Premier Realty ·

Short answer

The residence homestead exemption removes part of your home's value from taxation. Under Texas Tax Code Sec. 11.13 as published, school districts must exempt $140,000 of the appraised value of an adult's residence homestead, with an additional $60,000 for owners 65 or older and certain others. Other taxing units may add their own. At Cypress-Fairbanks ISD's 2025 rate of $1.0669 per $100, the $140,000 school exemption alone is worth about $1,494 a year. You must apply with the county appraisal district.

Section 11.13(b) says an adult is entitled to an exemption from taxation by a school district of $140,000 of the appraised value of the adult's residence homestead. Subsection (c) adds $60,000 for an adult who is 65 or older or who qualifies under the statute's federal-benefits definition. Subsection (n) lets any taxing unit adopt an additional percentage exemption, not to exceed 20 percent, by a vote of its governing body before July 1. Subsection (a) also provides a $3,000 exemption for county purposes.

A residence homestead is a structure, with the land up to 20 acres, that is owned by one or more individuals, used as a residence, and occupied as the owner's principal residence. A person may not receive an exemption on more than one residence homestead in the same year (11.13(h)). Separately, Tax Code Sec. 23.23 limits the increase in a homestead's appraised value to the lesser of market value or 10 percent above the prior year's appraised value plus new improvements, once the exemption has been in place.

Multiply the exempt value by the tax rate. The table applies the $140,000 school exemption to three 2025 school rates in Allen Markel's database: Cypress-Fairbanks ISD $1.0669, Katy ISD $1.1171 and Tomball ISD $1.0629 per $100, giving about $1,494, $1,564 and $1,488 a year. Your actual saving also depends on any local percentage exemptions and on your other taxing units, so treat these as the school piece only.

To get it, you file an application with the chief appraiser of each appraisal district where the property is located (Sec. 11.43(a)). Eligibility is determined by your qualifications on January 1 (Sec. 11.42(a)). Once allowed, the exemption generally does not need to be claimed again until the property changes ownership or your qualification changes (Sec. 11.43(c)). A late application is accepted if filed not later than two years after the delinquency date for the taxes (Sec. 11.431(a)). If you buy midyear, ask your agent and the appraisal district how the first year works for your closing date.

Amounts and rules change every year. For the most current and accurate answer, contact the county office directly: the appraisal district and the tax assessor-collector of the county where the home sits. For Harris County: the Harris Central Appraisal District (hcad.org, 713-957-7800) for values, exemptions and protests, and the Harris County Tax Assessor-Collector (hctax.net, 713-274-8000) for tax bills and payments. For Fort Bend County: the Fort Bend Central Appraisal District (fbcad.org, 281-344-8623) for values, exemptions and protests, and the Fort Bend County Tax Assessor-Collector (fortbendcountytx.gov/government/departments/tax-assessor-collector, 281-341-3710) for tax bills and payments. For Montgomery County: the Montgomery Central Appraisal District (mcad-tx.org) for values, exemptions and protests, and the Montgomery County Tax Office (mctx.org, 936-539-7897) for tax bills and payments.

School-tax value of the $140,000 homestead exemption at three 2025 school rates
School district2025 rate per $100CalculationAnnual school-tax saving
Cypress-Fairbanks ISD$1.0669140,000 x 1.0669 / 100$1,493.66
Katy ISD$1.1171140,000 x 1.1171 / 100$1,563.94
Tomball ISD$1.0629140,000 x 1.0629 / 100$1,488.06
Sources: Exemption amount: Texas Tax Code Sec. 11.13(b). Rates: Allen Markel's MLS database mirror (jurisdiction rate table) (data as of )

Common follow-up questions

Do I have to apply for the homestead exemption every year?

Generally no. Under Tax Code Sec. 11.43(c), once allowed it applies until the property changes ownership or your qualification changes. You still have to apply once.

Does the homestead exemption cap my appraised value increases?

Tax Code Sec. 23.23 limits the increase in a residence homestead's appraised value to the lesser of market value or 10 percent above the prior year plus new improvements, starting the year after the exemption is first qualified.

Can I get homestead exemptions on two houses?

No. Sec. 11.13(h) says a person may not receive an exemption for more than one residence homestead in the same year.

Sources

Talk it through with Allen

A short call can turn a general answer into one for your address, your timeline and your numbers.

Call (832) 709-2540

Related questions

Answers describe transactions and public data. They are not legal, tax or financial advice.