Texas Property Tax Exemptions: What Every Homeowner Needs to Know

If you own a home in Texas and haven't filed for every exemption you qualify for, you're leaving real money on the table every single year.

Texas has some of the highest property tax rates in the country, but it also gives homeowners several powerful tools to fight back. The problem? These exemptions are not automatic. You have to apply, and a lot of homeowners either don't know that or forget to do it when they move.

Whether you just bought your first home or you've lived in DFW for decades, here's what you need to know about every exemption available to you.

The General Homestead Exemption

The homestead exemption reduces the taxable value of your home for school district taxes by $100,000. That's the amount set by Senate Bill 2 in 2023, up from $40,000 before that. On top of that, your city and county may offer their own local exemptions of up to 20% of your home's appraised value.

There's also the homestead cap, which limits how much your appraised value can increase each year to 10%. This doesn't reduce your bill directly, but it protects you from big year-over-year jumps in your tax burden as long as you're living in the home.

• You must own the property and use it as your principal residence.
• You can only claim one homestead exemption in Texas at a time.
• If you bought your home after January 1, you can still file and receive a prorated benefit for that year.
• Late applications are accepted for up to two years past the delinquency date, so it's never too late to file.

Over-65 Exemption and School Tax Freeze

The over-65 exemption adds another $10,000 school district exemption on top of the standard $100,000 homestead, plus a $60,000 boost from the SB 2 reforms. That adds up to $160,000 in school district value reduction for qualifying seniors.

The school tax ceiling is arguably more valuable. Once it kicks in, your school district tax bill can never go higher than it was when you qualified, even if your home value goes up significantly. If you move to a new primary residence in Texas, the ceiling transfers with you.

• You must turn 65 during the tax year to qualify for that year.
• A surviving spouse age 55 or older may be able to continue their deceased spouse's over-65 exemption.
• File Form 50-114 and select the over-65 option on the application.

Disability Exemption

If you qualify as disabled under the Social Security Administration's definition, you are eligible for the same $10,000 plus $60,000 school district exemption and the school tax freeze that over-65 homeowners receive. You cannot stack the over-65 and disability exemptions together - claim whichever produces the larger benefit for you.

• Disability must be a permanent total disability, not a temporary condition.
• You'll need documentation from the Social Security Administration to apply.

Disabled Veteran Exemption

Texas offers a sliding scale exemption for veterans based on their VA disability rating:

• 10% to 29% rating: $5,000 exemption on appraised value.
• 30% to 49% rating: $7,500 exemption.
• 50% to 69% rating: $10,000 exemption.
• 70% or higher rating: $12,000 exemption.
• 100% permanently and totally disabled: full exemption on the entire homestead value.
• Surviving spouse of a veteran killed in action: full exemption on homestead, as long as the spouse doesn't remarry and continues to own the home.

Property Tax Deferral for Seniors and Disabled Homeowners

Under Texas Tax Code 33.06, homeowners age 65 and older or permanently disabled can defer their property tax bill indefinitely. The interest rate is 5% per year, which is below market. The tradeoff is that the accrued tax and interest reduce what heirs receive when the home is eventually sold.

• File Form 50-126 with your county appraisal district to start the deferral.
• Only applies to taxes that come due after the deferral is filed. Taxes already delinquent are not protected.
• The deferral ends and the total balance is due when you sell, move out, or transfer the property.

Key Deadlines to Know

• April 30: Deadline to file for a homestead exemption for the current tax year.
• May 15: Last day to file a property value protest with your county appraisal district.
• January 31: Final day to pay prior-year taxes without penalty or interest.
• Two-year lookback: Late exemption applications are accepted for up to two years past the delinquency date, so even if you missed the April 30 deadline, file anyway.

What's Coming: Proposition 13 (November 2025)

Apply by County: DFW Appraisal Districts

Each county has its own appraisal district where you file your exemption application. The form is the same statewide (Form 50-114), but you submit it to the district for the county where your home is located. All applications are free.

Not sure which county your property is in? Your property tax statement will show the appraisal district name. You can also search your address on any county appraisal district site to confirm.