If you’re a homeowner in Texas, understanding the Homestead Exemption is crucial to saving on your property taxes. This exemption reduces the taxable value of your home, translating into significant savings.
Whether you’re a first-time homeowner or simply need a refresher, this guide will walk you through the essentials of the Texas Homestead Exemption, including eligibility, filing deadlines, benefits, and more. Each county in Texas has its own specific process. Be sure to check out the rules as they apply in your chosen county.
What Is a Texas Homestead Exemption?
Put simply, a homestead exemption lowers the taxable value of your property. This means you will pay less property tax on your home. For example:
- If your home is valued at $300,000 and you qualify for a $40,000 exemption, your taxes are calculated based on $260,000 instead of the full value.
This tax relief supports homeowners by easing the financial burden while helping maintain affordability.
Key Benefits of a Homestead Exemption:
- Reduced property tax liability.
- Capped increases on taxable value (limited to 10% annually).
- Eligibility for additional exemptions, such as those for seniors or disabled homeowners.
How Much Can You Save with a Texas Homestead Exemption?
The amount you save depends on:
- Your home’s taxable value: This is the appraised value minus exemptions.
- Your local tax rate: Varies by school district, county, and city.
Example of Savings:
- Home Value: $300,000
- Homestead Exemption: $40,000
- Tax Rate: 1.54%
- Savings: $40,000 x 0.0154 = $616 per year
Who Can File for a Texas Homestead Exemption?
To qualify for Texas Homestead Exemption:
- The property must be your primary residence.
- You must own and occupy the home as of the date you file.
- Your driver’s license or state ID must reflect the same address as the property.
Additional Notes:
- You can only claim one homestead exemption at a time.
- If your home becomes a second property or rental, you must remove the exemption.
Texas Homestead Exemption Filing Deadlines and Process
When Should You File for Texas Homestead Exemption?
- File as soon as you own and occupy your home.
- Applications must be submitted by April 30th of the tax year.
What If You Forget to File?
- Late applications are accepted up to two years after the delinquency date (usually February 1st).
How to File Your Homestead Exemption:
- Visit your local Central Appraisal District (CAD) website. Example: Dallas CAD
- Download or complete the homestead exemption form.
- Provide proof of residence (e.g., driver’s license with matching address).
- Submit the form online (if available) or by mail.
Important: Filing is free. Beware of solicitations offering to file for a fee. You can do it yourself quickly and easily.
Homestead Tax Cap: Protecting You from Steep Increases
One of the most significant benefits of the Texas Homestead Exemption is the 10% Cap Law, which limits how much your taxable value can increase annually.
How the Texas Homestead Tax Cap Works:
- Without the cap: A property valued at $300,000 could jump to $350,000 in one year.
- With the cap: The increase is limited to 10%, so the taxable value would only rise to $330,000.
Tip: This cap applies only to properties with a homestead exemption and takes effect January 1st of the tax year following the year you file.
How to Verify Your Homestead Exemption Status
Not sure if you’ve filed for Texas Homestead Exemption? Follow these steps:
- Visit your local CAD website.
- Search for your property using your name or address.
- Look for “Exemptions” under your property’s details.
If your exemption is missing, file immediately to avoid paying higher taxes.
Frequently Asked Questions About Texas Homestead Exemptions
Can I have more than one homestead exemption?
No. You can only claim the exemption for your primary residence.
Do I need to apply every year?
No. Once filed, the exemption remains in place unless:
- You sell the property.
- You no longer occupy it as your primary residence.
- The appraisal district requests reapplication (rare).
What happens if I forget to remove my exemption after moving?
Failure to remove an exemption on a property no longer serving as your primary residence can lead to penalties. Notify your CAD promptly if your circumstances change.
Can I file for prior years?
Yes, you can file late applications for up to two years after the delinquency date.
What documentation do I need to file for Texas Homestead Exemption?
- Driver’s license or state ID with the property’s address.
- Utility bills (some counties may require additional proof).
Why File Your Texas Homestead Exemption?
- Immediate Savings: Reduce your property tax bill.
- Long-Term Protection: Cap annual taxable value increases.
- Peace of Mind: Ensure you’re not overpaying taxes.
Don’t wait—filing your homestead exemption is easy, free, and can save you hundreds or thousands of dollars each year.
Need Help Filing or Have Questions About Texas Homestead Exemption?
If you have questions about property taxes, homestead exemptions, or anything related to your mortgage, the Mortgage Mark Team is here to help. Contact us today for personalized assistance!

Mark Pfeiffer
Branch Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com
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