Blog > Texas Homestead Exemption 2026: How Much Houston Homeowners Save and How to File
Texas Homestead Exemption 2026: How Much Houston Homeowners Save and How to File
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The short answer
- A Texas homestead exemption removes $140,000 of your home's value from school taxes, plus whatever local exemptions your county, city and other districts offer.
- Homeowners 65 and older or disabled get another $60,000 off school taxes ($200,000 total), a ceiling on school taxes and extra local exemptions.
- On a $400,000 home inside Houston city limits and Houston ISD, the exemptions save about $2,800 a year at 2026 rates.
- You can file as soon as you own and live in the home. Filing is free through your appraisal district.
The homestead exemption is the single easiest way to lower your property taxes in Texas, and every year I see new homeowners miss it or pay a company to file a form they could have filed for free in 10 minutes. If you just bought a home in Houston, put this on your to-do list for this week.
How much the homestead exemption saves
A homestead exemption doesn't lower your rate. It lowers the taxable value each taxing unit applies its rate to. Here's what's available on a home inside Houston city limits and Houston ISD:
| Exemption | Applies to | Amount |
|---|---|---|
| State school homestead exemption | School district taxes | $140,000 off value |
| Local optional homestead exemption | Harris County, City of Houston and Houston ISD | 20% of value each |
| Over-65 or disabled (school) | School district taxes | Another $60,000 off value, plus a ceiling on school taxes |
| Over-65 or disabled (local) | County, city and many districts | Additional amounts set by each one |
Example: a $400,000 home inside the city
| Taxing unit | Value exempted | 2026 rate per $100 | Yearly savings |
|---|---|---|---|
| Houston ISD | $220,000 ($140,000 + 20%) | $0.8421 | about $1,853 |
| Harris County | $80,000 (20%) | $0.6715 | about $537 |
| City of Houston | $80,000 (20%) | $0.5192 | about $415 |
| Total | about $2,800 a year |
Over a 10-year ownership, that's roughly $28,000 that stays in your pocket. In the suburbs, the savings depend on your school district, city and MUD, but the $140,000 school exemption applies everywhere in Texas.
What changed in 2025
In November 2025, Texas voters approved two constitutional amendments that raised the school homestead exemption from $100,000 to $140,000 and the additional over-65 and disabled exemption from $10,000 to $60,000. Both applied to 2025 tax bills, so if your bill went down last year, that's why.
Who qualifies
- You must own the home (including through certain trusts) and live in it as your principal residence.
- You can claim only one homestead, in Texas or anywhere else.
- Your Texas driver's license or ID generally needs to show the home's address. Update it with DPS before you file.
- Rental property, second homes and vacant lots don't qualify.
When to file if you just bought
You don't have to wait until January anymore. Under Texas Tax Code §11.42(f), a buyer who acquires a home after January 1 can receive the exemption for the rest of that year as soon as they qualify, as long as the previous owner didn't already have the same exemption for that year.
In practice, that means two common situations:
- You bought a resale home where the seller had a homestead exemption. The seller's exemption stays on the account for the rest of the year, and your tax proration at closing is based on it. File for yourself so the exemption is in your name starting January 1 of next year.
- You bought new construction or a home that had no homestead exemption. File right away. You may be able to get the exemption for the part of this year after you moved in.
The standard deadline is April 30 of the tax year, but appraisal districts accept late applications for up to two years after the date taxes become delinquent. If you missed a year, file anyway and ask about a refund.
How to file in Houston-area counties
- Go to your county appraisal district's website: HCAD (Harris), FBCAD (Fort Bend), MCAD (Montgomery), BCAD (Brazoria) or GCAD (Galveston).
- Find the online homestead application, or use the state's Form 50-114.
- Upload a copy of your driver's license showing the property address. Some districts ask for other proof of residence.
- Submit it. There's no fee.
- Check your account online a few weeks later to confirm the exemption shows up. You don't need to refile every year unless the district asks you to.
A warning about mailers: after you close, you'll likely get official-looking letters offering to file your homestead exemption for a fee. Filing is free, and the appraisal district will help you directly. I tell every buyer client to toss those letters.
The 10% cap: the long-term benefit
Once your home has a homestead exemption, its taxable value can't go up more than 10% a year (plus the value of new improvements), even if the market value rises faster. The cap starts the year after you first qualify. In a year when values jump, that cap is worth as much as the exemption itself.
Turning 65 or becoming disabled
File for the over-65 or disability exemption as soon as you qualify. In the year you turn 65, you can receive it for the whole year. The school tax ceiling freezes your school taxes at that year's level (they can go down, but not up, unless you add improvements), and Harris County, the City of Houston and many other taxing units add their own exemptions on top. Homeowners 65 and older can also defer their property taxes while they live in the home, though interest accrues.
Homestead exemption questions
How much does the homestead exemption save in Houston?
On a $400,000 home inside the City of Houston and Houston ISD, about $2,800 a year at 2026 rates. The exact amount depends on your home's value and the taxing units at your address.
Can I file for the homestead exemption the same year I buy?
Yes. Texas law lets you receive it for the rest of the year once you own and live in the home, as long as the previous owner didn't already have the same exemption that year.
What is the deadline to file for a homestead exemption in Texas?
The standard deadline is April 30, but appraisal districts accept late applications for up to two years after the delinquency date, which is usually February 1.
Do I have to reapply every year?
No. Once approved, the exemption stays in place as long as you own and live in the home, unless the appraisal district asks you to reapply.
Should I pay a company to file my homestead exemption?
No. Filing is free through your county appraisal district, and most applications take about 10 minutes online.
Just bought, or thinking about it? I help every buyer client set up their homestead exemption after closing and estimate their real tax bill before they buy. Call or text (832) 777-3904 or send me a note.
Sources
- Texas Comptroller: property tax exemptions
- Texas Comptroller: property tax deadlines, including Tax Code §11.42(f)
- Texas Comptroller: Form 50-114
- CBS Texas: voters approve larger homestead exemptions
- Harris Central Appraisal District
Savings are estimates using published 2026 rates. Confirm your exemptions and values with your appraisal district. This isn't tax advice.
About the author: Evan Compean is the founder of Compean Group, a Houston real estate team and brokerage at 802 W. Patton St. He has invested in Houston real estate since 2002, holds TREC license 617930, and has helped sell 1,000+ homes over 15 years. Why clients work with us.