How Does the Texas Homestead Exemption Work and How Do I Apply?

If you bought a home in Texas and have not yet filed for your homestead exemption, you are very likely leaving money on the table every single year. This is the one piece of paperwork every Texas homeowner needs to prioritize.

What Is the Texas Homestead Exemption?

The Texas homestead exemption is a reduction in the taxable value of your primary residence for the purpose of calculating property taxes. The Texas Legislature passed Senate Bill 4 in 2025, which Texas voters approved as Proposition 13 on November 4, 2025. The measure raised the general school district homestead exemption from $100,000 to $140,000 and applied it retroactively to 2025 tax bills. According to the Texas Comptroller's website, the exemption removes $140,000 of your home's appraised value from school district tax calculations. All other taxing units — the county, the city, special districts — may also offer optional exemptions on top of the state-mandated school district exemption.

How Much Can You Save?

The savings depend on your local tax rate and your home's appraised value, but the impact is meaningful. According to data from Ownwell, the average Texas homeowner saves approximately $350 to $500 per year on school district property taxes from the general homestead exemption alone. For homeowners who are 65 or older or disabled, the total exemption reaches $200,000 in school district taxable value, producing average savings of $900 or more per year. In some districts, the combined exemption means seniors with modest home values pay no school property taxes at all in a given year.

When the 2023 and 2025 tax relief packages are combined, the Lt. Governor's office estimated that homeowners are receiving a total property tax cut of approximately $1,762.87, and seniors are receiving a combined reduction of $1,933.23, representing a 58.5% reduction in school district property taxes from 2023 through 2025.

Who Qualifies?

Any Texas homeowner who uses the property as their primary residence as of January 1 of the tax year qualifies for the general homestead exemption. You may not claim a homestead exemption on more than one property, and you may not claim one in another state simultaneously. The property must be your principal residence — it cannot be a rental, second home, or investment property.

How to Apply: Step by Step

1. Download Form 50-114, the Application for Residence Homestead Exemption, from the Texas Comptroller's website at comptroller.texas.gov or from your county appraisal district's website directly. In Kendall County, that is kendallappraisaldistrict.org.
2. Gather your Texas Driver's License or Texas state ID. The address on the ID must match the property address you are claiming. This is a hard requirement — the application will not be processed without it.
3. Complete the form with your property information, ownership details, and any additional exemptions you may qualify for (age 65+, disability, surviving spouse, disabled veteran).
4. Submit the form to your county appraisal district by April 30 of the tax year for which you are applying. You may submit by mail, in person, or online if your county accepts digital submissions.
5. The exemption, once approved, remains in place until you sell or move. Your county appraisal district will verify eligibility every five years per Senate Bill 1801.

Late Application Window

If you missed the April 30 deadline, you can still file a late application for up to two years prior to the delinquency date of the tax year. This means new homeowners who did not realize they needed to file can often recover one or two years of exemption savings retroactively. The Texas Comptroller confirms that late applications are accepted for up to two years.

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