If you own the home you live in, the residence homestead exemption is the largest property tax break available to you in Texas, and it costs nothing to claim. The figures changed recently, so the numbers you remember from a few years ago are almost certainly too low. Here is where things stand for the 2026 tax year.
What is the homestead exemption?
It is a reduction in the value your home gets taxed on, granted separately by each taxing unit that bills you. Texas Tax Code Section 11.13(b) requires school districts to exempt $140,000 of a qualified homestead's value. Voters raised that from $100,000 when they approved Proposition 13 at the election held November 4, 2025. Counties that collect farm-to-market or flood control taxes must provide another $3,000 exemption. On top of that, Section 11.13(n) lets any taxing unit adopt a local option exemption of up to 20 percent of appraised value, which cannot be less than $5,000.
Who qualifies?
You qualify if you own the property and use it as your principal residence. Travis Central Appraisal District puts the test simply: the general residential homestead exemption is available to taxpayers who own and reside at a property as of January 1st of the year. You also have to state that you are not claiming a homestead exemption on another residence, inside Texas or outside it. If you bought after January 1, the Comptroller notes you may receive the general residence homestead exemption for the applicable portion of the tax year immediately on qualification, provided the previous owner did not already receive the same exemption that year.
How much does it actually save?
In Travis County the cuts stack across four bills. TCAD's 2026 exemption listing shows Austin ISD applying the $140,000 state exemption, Travis County a 20 percent local option exemption with a $5,000 minimum, the City of Austin also 20 percent, and Austin Community College 1 percent. TCAD reported that in 2025, having a homestead exemption saved the average Travis County property owner $3,663 on their property tax bill. Your own figure depends on your appraised value and which taxing units you sit inside, so read your notice of appraised value rather than a rule of thumb.
There is a second benefit people overlook. Once the exemption is in place, TCAD says the increase in your assessed value is limited from year to year to 10 percent, so long as changes have not been made that add new value. Market value can climb faster than that. Your taxable value cannot.
“In a rising market, the 10 percent cap quietly does more work than the exemption itself.”
When do I have to file, and what if I missed it?
April 30. TCAD states the deadline to file your completed homestead exemption application is April 30 of each year, and if April 30 falls on a weekend the deadline moves to the following Monday. Missing it is recoverable. TCAD also states you may file a late homestead exemption application if you file it no later than two years after the date the taxes become delinquent. You file once, and the exemption stays with the property as long as you keep living there.
What if I am 65 or older or disabled?
School districts must provide an additional $60,000 residence homestead exemption for owners who are 65 or older or disabled, and the school tax ceiling comes with it. The Travis County Tax Office describes the ceiling plainly: it freezes your school taxes at the amount you pay in the year that you qualify for the exemption. Local units add their own amounts. For 2026, TCAD's listing shows Travis County exempting $145,269 and the City of Austin $204,000 for over-65 and disabled homeowners.
One last thing worth saying out loud: filing is free. TCAD says filing for an exemption is free, and that property owners who need help with their forms should never pay someone to assist them. Solicitations turn up in the mail every year offering to handle it for a flat fee or a cut of your savings. The appraisal district provides the application at no cost and will help you complete it. This article is general information, not legal or tax advice. Confirm your own situation with your appraisal district or a tax professional.
