Owning a home in Texas brings big perks—like the Texas homestead exemption, which can give you major savings on property tax TX every year. But recent changes mean you need to know how it works in 2025. This human-friendly guide walks you through everything—from eligibility to application and staying compliant—without sounding like a robot.
1. What Is the Texas Homestead Exemption?
The Texas homestead exemption removes part of your home’s appraised value before taxes are calculated. Here’s how it breaks down:
- Every school district must offer a $25,000 exemption on your home’s value .
- Many local taxing units (counties, cities, hospitals) also offer optional percent-based exemptions, usually up to 20% of appraised value.
- For seniors (65+), the disabled, and disabled veterans, you can get additional exemptions, often $10,000 or more .
2. Why It’s Important for Property Tax TX
Saving on taxable property value means less money out of your pocket. For example:
- A $300,000 home with a $25,000 exemption could save you $300–$500 in school taxes alone.
- With optional local exemptions and freezes for seniors, total savings balloon—even further under proposed 2025 enhancements.
Plus, once your exemption is granted, it caps your school tax increases at 10% per year, no matter how high appraisals go.
3. Who Qualifies?
To claim the Texas homestead exemption:
Ownership & Occupancy
- You must own and live in the home as of January 1 of the tax year.
One Home Only
- You can claim on only one residence—in Texas or anywhere else .
Special Categories
- Seniors 65+: Extra exemption & tax ceiling .
- Disabled veterans/spouses: Tiered relief up to full exemption .
- Heirs of homesteads: Can attach the exemption with affidavits even if not on title .
4. How to Apply & Keep It Active
Step 1 – File Form 50‑114
Download your county appraisal district’s Form 50‑114, attach a TX driver’s license and utility bill showing the home address, and submit by April 30.
Late Filing Allowed
You can apply up to two years late if needed.
Step 2 – Extra Exemptions
Seniors, disabled, or veterans need to submit proof of age, disability, or service.
Step 3 – Reverification Every 5 Years
Because of 2024 changes, you’ll get a notice now to confirm your exemption every five years .
5. What’s New in 2025?
Big updates on the horizon:
- Permanent $100,000 exemption for school taxes (up from $25K) .
- Seniors (65+) could see up to $150,000 exempted.
- Bills on the November 2025 ballot could halve school taxes via increased homestead limits.
If passed, direct tax savings may exceed $500–$1,000/year for many homeowners.
6. Common Questions
Q: Do I need to reapply each year?
No. It’s typically a “set-and-forget” process, unless county requests reverification every five years.
Q: What if I move within the county?
If you’re still in the same county and it’s a new homestead, you’ll need to reapply with Form 50‑114.
Q: How does the 10% cap work?
Once the exemption applies, your home’s school-appraised value can’t increase more than 10% per year, protecting you from big property tax jumps .
Q: Missing the deadline?
No problem—late filings are accepted up to two years after delinquency date.
7. Tips for Maximizing Savings
- File promptly (by April 30) to get full year benefit .
- Watch for reverification notices—respond promptly to avoid losing exemption .
- Track local ballots in November 2025 for potentially bigger exemptions.
- Claim all categories you’re eligible for – age, disability, veteran status .
8. Real-Life Example
Meet Carrie from Austin:
She filed her homestead in early 2024. After turning 65 in January 2025, she added the senior exemption. With the permanent $100K base and $10K senior, she’s now exempting $110K of her $350K home—saving roughly $1,200/year, with an annual tax cap protecting future bills.
Final Takeaway
The Texas homestead exemption is a powerful way to reduce your property tax TX bills—especially with the 2025 law changes in play. Just make sure to file early, claim all eligible exemption categories, and keep an eye on reverification notices. With a few simple steps, you’ll protect more of your home’s value and enjoy lasting tax relief.
Need help with forms, confirming eligibility in your county, or preparing for the 2025 tax changes? I can connect you with trusted local appraisal officials or tax experts.