How much does Homestead Exemption save in Texas? (2026)
How much does homestead exemption save in Texas?
The Texas homestead exemption reduces the taxable value of your home, which reduces your property taxes.
Most homeowners save $700 to $2,000 per year, depending on their home value and local tax rates.
The biggest savings come from the school district homestead exemption, which is now $140,000.
Texas homestead exemption amounts (2026)
| Taxing Unit | Exemption |
|---|---|
| School district | $140,000 |
| Seniors / Disabled (school) | Additional $60,000 |
| County (optional) | $3,000 |
| Other taxing units | Up to 20% (minimum $5,000) |
| Senior / Disabled (other units) | Additional $3,000 |
Example homestead exemption savings
Assume:
- Home value: $350,000
- School tax rate: 1.1%
- Other tax rate: 0.9%
Without homestead exemption
Taxable value = $350,000
Total tax = $350,000 × 2% = $7,000
With homestead exemption
School taxable value = $350,000 − $140,000 = $210,000
Other taxable value ≈ $347,000
Total tax ≈ $5,600
Annual savings ≈ $1,400
Estimated homestead exemption savings by home value
| Home Value | Estimated Annual Savings |
|---|---|
| $200,000 | $700 – $900 |
| $300,000 | $1,000 – $1,300 |
| $400,000 | $1,300 – $1,600 |
| $500,000 | $1,500 – $1,900 |
| $750,000 | $1,900 – $2,500 |
Savings vary depending on school district tax rates.
Homestead exemption savings for seniors
Seniors (age 65+) and disabled homeowners get an additional $60,000 school district exemption, bringing their total school exemption to $200,000. This means many seniors pay very little school district property tax. If their home value is below $200,000, they are fully exempt from school district property taxes. Seniors also benefit from a school district tax ceiling, meaning school taxes stop increasing after they qualify for the exemption (unless they improve the home).
Is Texas homestead exemption worth it?
Yes. The homestead exemption is one of the easiest ways to reduce property taxes in Texas. Not claiming your homestead exemption is like voluntarily paying extra property taxes every year. Applying for a homestead exemption is free and only needs to be done once. You may find our guide to fill up the homstead exemption form helpful.
FAQ
How much does homestead exemption reduce property taxes in Texas?
Most homeowners save between $700 and $2,000 per year depending on home value and tax rates.
Does homestead exemption apply to all property taxes?
No. The $140,000 exemption applies only to school district taxes. Other taxing units may offer smaller exemptions.
Do seniors get a bigger homestead exemption?
Yes. Seniors and disabled homeowners get a total $200,000 school district exemption and may also receive tax ceilings.
Can you claim homestead exemption for previous years in Texas?
Yes. You can claim homestead exemption retroactively for up to two years.
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