Texas homeowners may be missing out on a major property tax break. Here’s how to claim it.

By Joshua Fechter, The Texas Tribune
October 20, 2026

Texas has some of the nation’s highest property tax bills, but many may not know there’s a way to bring down their payments.

Texas homeowners can apply for a homestead exemption, which can cut thousands of dollars off the taxable value of a home. That gives homeowners a break on the taxes they pay to public schools, often the biggest chunk of an owner’s tax bill, and often on the taxes they pay to cities and counties, too.

Despite the savings potential, many homeowners don’t claim the exemption. Homeowners may face hurdles when it comes to applying or having the right documents in order. Others simply might not know about the exemption.

That means many homeowners are missing out on considerable savings on their property tax bill, which local tax offices sent out this month. 

Here’s what to know about claiming a homestead exemption. 

Who qualifies for a homestead exemption?

Homeowners who have at least some ownership stake in their primary residence and live in that residence as of Jan. 1 can apply for an exemption. Homeowners may not claim more than one primary residence in Texas or anywhere else in the country.

Homeowners who are undocumented effectively do not qualify for a homestead exemption. It’s illegal for undocumented immigrants to obtain a Texas drivers license, which is crucial for claiming the exemption. 

How much is the homestead exemption? 

Texas law sets the homestead exemption school districts must provide at $140,000. So, if a home is worth $200,000, a qualifying homeowner only pays school property taxes on $60,000 of that value. Homeowners age 65 and or have a qualifying disability receive an additional $60,000 exemption on top of the $140,000 exemption they receive from school districts. 

The school tax bill freezes the moment a homeowner turns 65. Older Texans get the option to pay their property taxes in installments, and may also get additional breaks from local school districts if those districts offer them.

Homeowners with a homestead exemption can also automatically start receiving exemptions from any property taxing entity, like cities and counties, that offer one.

Properties with the homestead exemption also benefit from the state’s 10% appraisal cap, which limits how fast a home’s taxable value can rise each year.

What are the requirements to apply for a homestead exemption?

Most homeowners must have a valid Texas driver’s license or state ID and provide a clear copy of that identification.

The address on their identification must match the property address. However, the addresses do not need to match for active duty military members and residents of nursing homes or assisted care facilities.

An heir may obtain an exemption if their name isn’t on the deed or title. They must submit an affidavit proving their ownership interest as well as documents including a death certificate, a recent utility bill showing that they reside at the property and any legal documents that establish the inheritance.

There are other documents homeowners will need to claim additional exemptions like one for homeowners with qualifying disabilities or for surviving spouses of veterans.

How do you apply for a homestead exemption?

Check with the appraisal district in person or on their website for a homestead exemption application. Homeowners may use the Residence Homestead Exemption Application provided by the Texas Comptroller (download it here), which appraisal districts must accept.

Applicants can file for a homestead exemption at no cost with the county appraisal district. Many appraisal districts allow homeowners to file their application online, but homeowners may also mail their application and drop it off in person. They may have to if the local appraisal district doesn’t allow online applications.

Under state law, an appraisal district has 90 days to determine whether to approve a homestead exemption.

If a homeowner is approved, they generally don’t have to reapply unless their eligibility changes or the appraisal district asks the homeowner to verify their eligibility.

When can you apply for a homestead exemption? 

Homebuyers may apply once they own and occupy the home as their primary residence, including first-time homebuyers. 

Homeowners who live in the home as of Jan. 1 must apply for the exemption by April 30.

For homeowners who purchase their home after Jan. 1, applying for the exemption may be slightly more complicated.

If the previous owner already had an exemption on the property, a new homeowner will have to wait until the new year to apply for their own exemption.

If the previous owner didn’t have an exemption, homeowners are encouraged to apply as soon as possible to receive an exemption for the rest of the year. 

What if you missed the deadline to apply?

Homeowners can still claim the exemption retroactively. Most eligible homeowners can apply until two years after that year’s property taxes have been paid, so they could receive a refund for the difference between what they paid and what they would have paid if they had claimed the homestead exemption.

Certain homeowners — disabled veterans, for example — may have as long as five years to apply for specific exemptions.

How can you check if you have a homestead exemption? 

Appraisal districts don’t typically send an official approval letter if they accepted a homestead exemption application. 

Homeowners can verify whether they’ve been approved for the exemption by checking their property record on the appraisal district’s website or by contacting the appraisal district. The exemption will also show up on homeowners’ notice of appraised value appraisal districts mail in April or on their tax bill mailed in October.

This article first appeared on The Texas Tribune.