Last reviewed/updated: June 2026 — Information reflects 2026 tax year rules.
When I first moved to Texas, the homestead exemption was not on my radar. I was focused on the big picture — no state income tax, lower home prices, the logistics of uprooting a life. So when my first tax bill arrived at the full, unexempted amount, I paid it without a second thought. It was only months later that I learned the exemption existed and that I might have been eligible to file late. By that point I was not sure whether I still qualified, and I never followed up. I paid more than I needed to because I did not know what I did not know.
If you are relocating to Texas, this is the guide I wish someone had handed me before I closed on my first Hill Country home. The Texas Homestead Exemption reduces the taxable value of your primary residence, lowering your annual property tax bill by hundreds or thousands of dollars. It also caps annual appraisal increases at 10% — a long-term protection that compounds every year. You file once, and it protects you every year going forward. But you have to file. File as soon as you close on your home and move in.
What the Homestead Exemption Is and How Much It Saves
The Texas Homestead Exemption is a reduction in the taxable value of your primary residence. When your county appraisal district assesses your home's market value for tax purposes, the exemption subtracts a fixed amount from that value before taxes are calculated [1][2].
- School district taxes: A mandatory exemption of $140,000 is subtracted from your appraised value for school district tax purposes. This is the largest component and applies to every qualifying homeowner in the state [2].
- County, city, and special district taxes: Local taxing entities may offer optional exemptions — typically between $5,000 and 20% of appraised value — that further reduce your taxable value [1].
This is not a temporary tax break. Once filed, the exemption stays in place for as long as you occupy the home as your primary residence. You do not need to refile annually, though your county appraisal district will periodically verify eligibility — see the 5-Year Verification section below for details.
Filing is free — always.
There is no fee to apply for or maintain a Texas homestead exemption. You file directly with your county Appraisal District — online, by mail, or in person. Do not pay a third party to file on your behalf.
The 10% Appraisal Cap
The $140,000 school district exemption delivers immediate savings. But the homestead exemption does something else that is arguably more valuable over time: it caps how much your appraised value can increase each year.
Under Texas Tax Code §23.23, the appraised value of a homesteaded property can increase by no more than 10% per year, plus the value of any new improvements [6][15]. Without the exemption, there is no cap at all — your property can be reappraised to full market value every year.
Important timing detail: the 10% cap takes effect on January 1 of the year after you first qualify for the homestead exemption. It does not protect your first-year valuation. That is why filing promptly matters — the sooner you file, the sooner the cap starts shielding you from full-market reappraisals. The full-market-value reappraisal at purchase is a one-time event, but the delay before the cap kicks in means your first-year appraised value can reflect the purchase price with no cap protection.
New construction buyers: a first-year appraisal at full market value when you purchase a newly built home is normal and expected — the 10% cap begins protecting your appraised value from further increases in subsequent years once your homestead exemption is on file.
What the cap does not do: it limits appraised value growth — it does not cap tax rates, special assessments, HOA dues, or other non-ad-valorem charges. A taxing unit can raise its rate, and PID assessments are entirely outside the cap. The cap also has exceptions: it does not apply to new construction in the year completed, nor to significant improvements in the year they are added.
Note for non-homestead properties: a separate temporary appraisal cap of 20% applies to non-homestead properties valued at $5 million or less, expiring December 31, 2026. This is distinct from the homestead 10% cap and is scheduled to sunset.
Year-by-Year Impact: $450,000 Home in Boerne, 11% Appreciation
Assume you purchase for $450,000, file your exemption, and the market appreciates at 11% per year [12].
| Year | Market Value (No Cap) | Capped Appraised Value | Taxable Value (After $140K) | You Save vs. No Cap |
|---|---|---|---|---|
| 2027 | $499,500 | $495,000 | $355,000 | $4,500 |
| 2028 | $554,445 | $544,500 | $404,500 | $9,945 |
| 2029 | $615,434 | $598,950 | $458,950 | $16,484 |
| 2030 | $683,132 | $658,845 | $518,845 | $24,287 |
| 2031 | $758,276 | $724,730 | $584,730 | $33,546 |
The gap between capped and uncapped appraised value reaches $758,276 vs. $724,730 after five years — a difference of $33,546. Over a decade, this compounding effect can suppress taxable value by tens of thousands of dollars.
How Much You Save: School Tax by Home Value
Using the Boerne ISD adopted rate of $1.0109 per $100 of taxable value, here is what the $140,000 exemption saves at different price points [10]. The dollar savings is the same at every tier because the exemption is a flat deduction — but the percentage reduction is much more significant at lower appraised values.
| Appraised Value | Without Exemption | With Exemption | Annual Savings | % Reduction |
|---|---|---|---|---|
| $300,000 | $3,032.70 | $1,617.44 | $1,415.26 | 46.7% |
| $400,000 | $4,043.60 | $2,628.34 | $1,415.26 | 35.0% |
| $500,000 | $5,054.50 | $3,639.24 | $1,415.26 | 28.0% |
| $600,000 | $6,065.40 | $4,650.14 | $1,415.26 | 23.3% |
| $750,000 | $7,581.75 | $6,166.49 | $1,415.26 | 18.7% |
Boerne ISD 2025 adopted rate. Your actual school district rate may differ. Counties, cities, and special districts may offer their own additional exemptions, potentially reducing your total tax bill further [1]. Note that PID assessments are not ad valorem taxes and are not reduced by the homestead exemption or the 10% appraisal cap.
The table above reflects school-district savings only. In practice, the homestead exemption also reduces the taxable value for county, city, and special district taxes. In a typical Kendall County location outside Boerne city limits, combined tax rates often run approximately 1.8–2.1%. On a $400,000 home, that means total exemption savings across all taxing entities could be $1,800–$2,500+ annually — significantly more than the school-only figures in the table above.
Side-by-Side: $400,000 Home With vs. Without the Exemption
School district taxes only, at Boerne ISD rates. The 10% cap assumes 11% annual market appreciation for illustration.
Without Exemption
$4,488
Year 1 School Tax
With Exemption + 10% Cap
$2,628
Year 1 School Tax
Cumulative savings over 5 years: $7,873 · Over 10 years: $18,317 · Assumes 11% annual market growth. Actual results vary.
The $140,000 base exemption did not appear overnight. In November 2023, Texas voters approved Proposition 4, which increased the general school district homestead exemption from $40,000 to $100,000 and raised the additional over-65/disabled exemption from $10,000 to $60,000. Proposition 2, also on the November 2023 ballot, provided additional property tax relief measures. The trend is clear: Texas is actively expanding property tax relief for homeowners.
The bottom line: the homestead exemption is not just about the $140,000 base reduction. The 10% appraisal cap is the bigger long-term benefit — especially in appreciating markets like Boerne, Fair Oaks Ranch, and the Hill Country. Filing your exemption activates both protections. Not filing activates neither.
Who Qualifies for the Homestead Exemption
Requirements
-
You must own the home
Title must be in your name, or held under certain qualifying trusts. Contract-for-deed buyers may qualify if they meet occupancy requirements.
-
You must use it as your principal residence
For a full-year exemption, the home must qualify as your residence homestead on January 1. Mid-year buyers qualify for a pro-rated exemption under §11.42(f) — both ownership and use as principal residence must be satisfied.
-
You must be a Texas resident
A Texas driver's license or state ID with the property address is the standard documentation.
-
One homestead exemption per person
You can claim a homestead exemption on only one property — your primary residence. If you own multiple homes in Texas, you choose one.
What types of property qualify?
The homestead can be a single-family house, condominium, townhome, or manufactured home — as long as you occupy it as your primary residence. The key test is ownership and occupancy, not structure type. A manufactured or mobile home you own qualifies for the homestead exemption on the structure itself, even if you lease the underlying land (for example, in a mobile home park) [1]. The exemption applies to the home you own; the leased land value is excluded from the exemption.
Renters and second homes
Renters do not qualify. The exemption requires ownership. If you rent a home in Texas while searching for a property to buy, you will not receive the homestead exemption until you purchase and occupy a home. You also cannot claim the exemption on a second home, vacation property, or investment property.
The intent-to-occupy standard
Texas uses an intent-to-occupy standard. You must genuinely intend to make the property your primary home, assessed through objective evidence — where your driver's license is registered, where you vote, where your vehicle is registered. Simply owning a property and visiting it occasionally does not satisfy the requirement.
New construction
If you buy a new construction home, the exemption applies once you close and occupy it as your principal residence. Be aware that your first tax bill may be based on a partially complete value (if the home was under construction on January 1), and the following year's bill will jump to full market value. Plan for this transition and see the Deadlines, Timing, and How to File section for when to file.
Trusts, heir property, and co-ownership
Qualifying revocable living trusts may claim the exemption. Heirs who inherit a home and occupy it as their principal residence may be eligible. Co-owners may each claim a proportionate share if each uses the property as their principal residence.
Spouse rules and temporary absences
Spouses generally cannot maintain separate homestead exemptions — if your spouse already claims one on a different property, your application may be denied. A homeowner may retain the exemption during a temporary absence (extended travel, medical treatment, military deployment) as long as the home remains their principal residence and they intend to return. Converting a home to a rental ends the exemption.
Agricultural valuation warning
If you purchase Hill Country property with an agricultural or wildlife management tax valuation, removing that valuation triggers a rollback of up to three years of tax savings. Under HB 3833, interest was removed from the rollback calculation, but the recapture itself remains significant. Factor this into your budget if the property carries an ag exemption you plan to discontinue.
Over-65 and Disabled Benefits: Greater Savings and a Tax Freeze
If you are 65 or older, or have a qualifying disability, the savings get substantially larger. In addition to the $140,000 base exemption, you receive an additional $60,000 from school district taxes — bringing your total school district exemption to $200,000 [3]. At the Boerne ISD 2025 rate, the $200,000 exemption saves you $2,021.80 per year in school district taxes.
But the real power is the school tax ceiling (also called the tax freeze). The ceiling is set at the amount of school taxes you owed in the first year you qualified — or, for a transfer, the ceiling from your previous property. School taxes generally cannot increase above that ceiling as long as you or your spouse continue to qualify, regardless of how much your home appreciates [8]. The ceiling is not completely fixed: capital improvements, tax rate changes, or statutory adjustments can cause limited recalculation. And it applies to school taxes only — county, city, and special district taxes continue to rise.
If you are 65 or older when you close, you can apply for the homestead exemption and the over-65 exemption at the same time.
Portability: Taking Your Ceiling With You
When you sell your current home and buy a new one in Texas, you can transfer the school tax ceiling to your new property [8]. The transfer does not carry over the exact dollar amount. Instead, the new school district calculates a ceiling that provides the same percentage of tax savings you received at your prior home. To transfer, indicate it on your new homestead exemption application (Form 50-114) and provide your previous address. County, city, and junior college tax ceilings transfer only if those specific jurisdictions have adopted such ceilings and you remain within the same taxing jurisdiction.
Surviving-Spouse Eligibility
If your spouse qualified for the over-65 exemption and has passed away, you may continue to receive the exemption — including the school tax ceiling — provided you own and occupy the home as your principal residence.
Disabled-Person Eligibility
Homeowners who qualify for a disability exemption receive the same additional $60,000 school district exemption and tax ceiling as over-65 homeowners. Eligibility is determined by Social Security disability determination or other qualifying disability status. File with your county appraisal district and provide supporting documentation.
Tax Deferral Option
Over-65 and disabled homeowners may also be eligible to defer (postpone) payment of school-district property taxes for short-term cash-flow relief. This is a deferral, not a cancellation: deferred taxes accrue interest, remain secured by a lien on the property, and must be paid when the property is sold or transferred. Discuss implications with a tax professional before filing.
Disabled Veterans: Separate, Additional Exemptions
Texas provides property tax exemptions for veterans with service-connected disabilities, separate from and in addition to the standard homestead exemption. Veterans with a 100% service-connected disability rating are 100% exempt from all property taxes on their primary residence — a complete elimination of the tax bill. The exemption transfers to a surviving spouse.
Veterans with ratings below 100% receive tiered dollar-amount exemptions: $5,000 for 10%–29%, $7,500 for 30%–49%, $10,000 for 50%–69%, and $12,000 for 70%–100%. These stack on top of the $140,000 homestead exemption.
File for both the standard homestead exemption and the disabled veteran exemption at the same time, providing a VA letter documenting your disability rating. For military families relocating to the Hill Country near Joint Base San Antonio, this is one of the most significant financial benefits of living in Texas. Reference: Texas Tax Code §11.22.
Deadlines, Timing, and How to File
Filing deadlines depend on when you close. Texas provides two distinct filing paths, governed by different provisions of the Tax Code [4][14]:
Closed before January 1 — file by April 30
If you occupy the home as your principal residence on January 1, you must file by April 30 of that tax year for a full-year exemption [4]. Example: close December 15, 2025, occupy January 1, 2026, file by April 30, 2026. Your exemption applies to the full 2026 tax year.
Closed after January 1 — file immediately for pro-rated savings
Under §11.43(h), you qualify for a pro-rated exemption for the remainder of that calendar year. However, the exemption begins when you satisfy both requirements under §11.42(f): (1) an ownership interest, and (2) use as your principal residence. If you close July 1 but do not move in until August 1, the exemption begins August 1 — not July 1. Once you have your updated Texas driver's license with the property address, file immediately. The previous owner must not have claimed a homestead exemption on the property for that year.
Missed the April 30 deadline
Texas generally allows late applications for up to two years after the taxes become delinquent (typically February 1 of the following year). If approved, you can receive a corrected tax bill or refund. But you will have already paid the full bill and must wait for a refund. Filing on time is always the simpler path [5].
Filing Timeline: Key Milestones
- 1 Close and move in — both ownership and principal-residence use begin.
- 2 File your exemption — once both conditions are met (or by April 30 of the following year for a full-year exemption).
- 3 Year 1 — pro-rated savings begin; the base-year appraisal is set for the 10% cap.
- 4 Year 2 and beyond — the 10% cap limits appraisal increases; savings compound annually.
How to File: Step by Step
Filing is your responsibility. Your lender will not file for you. The appraisal district will not file for you [4].
Determine your county
File with the county appraisal district where your property is located — not necessarily the county tax office.
Gather your documents
- Completed Application for Residence Homestead Exemption (Form 50-114)
- Texas driver's license or state ID showing the property address
- Vehicle registration showing the property address (if applicable)
- Proof of ownership (deed or closing statement)
- SSN or ITIN for each owner (if claiming over-65/disabled: additional forms 50-114-A or 50-135)
File online, by mail, or in person
Most Hill Country appraisal districts allow online filing — check your county CAD's website. No annual refiling is needed.
Confirm receipt and check your tax bill
After filing, confirm the appraisal district received your application. When your tax bill arrives, verify the exemption is applied. If not, contact the appraisal district immediately.
County Appraisal District Filing Links
Click through to your county's site to file online, download the application, or find the in-person filing address.
Bexar County
bcad.org
Kendall County
kendallad.org
Comal County
comalad.org
Guadalupe County
guadalupead.org
Medina County
medinacad.org
Bandera County
bancad.org
Kerr County
kerrcad.org
Gillespie County
gillespiecad.org
Blanco County
blancocad.com
How to Check Your Current Exemption Status
After filing, or if you want to confirm a previous owner's exemption was properly transferred, use your county's Central Appraisal District (CAD) online portal. Most county CAD portals allow you to search for any property by address without logging in, so you can look up your record at any time. Every Texas county runs its own CAD, and the portals are not identical — but the basic process is the same.
How to search
- By property address: Enter the full street address (number, street name, city). This is the most reliable method.
- By owner name: Enter your last name as it appears on the deed. Useful if you're unsure of the exact address format the CAD uses.
- By account number: If you have your CAD account or property ID from a prior tax bill, enter it directly.
What to look for on your property record
Once you pull up your property record, look for an "Exemptions" or "Exemption Summary" section. You want to see:
- Homestead exemption code or flag — typically labeled "HS" or "Homestead" — confirming it is on file.
- The dollar amount — for the standard homestead, this should show $140,000 for school district purposes (plus any county or city exemptions your jurisdiction offers).
- Effective date — the tax year from which the exemption applies. This is the detail most worth checking: the effective date tells you exactly when your exemption first took effect, and any gap between your closing date and that effective date may mean you are paying more tax than necessary.
- Additional exemptions — if you filed for over-65, disabled, or veteran exemptions, those should appear separately with their own amounts.
If the homestead exemption does not appear, or the effective date is wrong, contact the CAD or your county Tax Assessor-Collector to correct the record. Do not wait until your tax bill arrives to discover the issue.
County-by-County Portals for Hill Country Counties
Bexar County
Bexar County Appraisal District (BCAD)
bcad.orgUse the "Property Search" tool. Search by address or owner name. The "Exemptions" tab on your property record shows all active exemptions with effective dates.
Kendall County
Kendall County Appraisal District (KCAD)
kendallad.orgSearch by property address or owner name. Exemption information appears under the property details. Exemptions can be found under the "Exemptions" section of your property record.
Comal County
Comal County Appraisal District (CCAD)
comalad.orgUse the property search to find your record by address. The CAD site lists exemptions on the property detail page, including the homestead flag and dollar amounts.
Bandera County
Bandera County Appraisal District (BCAD)
bancad.orgSearch by address or owner name. Exemption details are shown on the property record. Bandera County's portal is smaller and simpler than Bexar's but functions the same way.
If your exemption does not appear
- Wait one to two business days if you just filed — processing takes time.
- Check that you searched the right county. Your property's CAD is determined by its physical location, not your mailing address.
- Contact the CAD directly. Call or email the appraisal district (not the Tax Assessor-Collector) to confirm whether your application was received and is being processed. Each CAD lists its contact information on its website.
- If the CAD confirms no application on file, refile immediately. You may still be within the late-filing window.
The 5-Year Verification Requirement (SB 1801)
Since 2023 under Senate Bill 1801, your county appraisal district must verify homestead eligibility at least once every five years. You may receive a verification notice in the mail. If you do:
- Respond promptly with your current Texas driver's license or ID showing the property address.
- Failure to respond can result in removal of your exemption — and a higher tax bill.
- Confirm the notice is legitimate by checking that the return address and contact information match your county CAD's website. Do not respond to notices that ask for payment or sensitive information beyond address verification.
If you receive a removal notice and believe it is in error, contact the CAD immediately to appeal. You can also check your property record online at any time to confirm the exemption is still active.
Critical Warnings for California Buyers
If you are relocating from California, three issues catch people off guard with remarkable consistency. None of them are covered by standard closing-checklist advice, and all of them can cost you real money if you are not prepared.
Warning: Your "Year Two" Tax Bill Will Be Higher Than You Expect
If you are coming from California, you are accustomed to Proposition 13 — the assessment cap that immediately locks your property tax base to the purchase price the moment you close. In Texas, it does not work that way, and the difference can produce a significant tax bill increase in your second year of ownership.
Here is how the timing actually works:
- Year 1 (the calendar year you close mid-year): Your tax bill is calculated on the previous owner's appraised value — typically a lower, capped amount that has been compounding under their tenure. This is true even if you paid far more for the home. The bill arrives and seems manageable. You conclude that Texas property taxes are not so bad.
- Year 2 (January 1 of the following year): The county appraisal district reassesses the home to its full current market value — which, in most purchase scenarios, is close to or exactly the high price you just paid. Your appraisal can jump from, say, $320,000 (the previous owner's capped value) to $500,000 (your purchase price) overnight. This is the reset.
- Year 2 onward: Only after this reset does your 10% annual appraisal cap begin protecting you. The cap limits future increases to 10% per year — but it does not cap the initial reappraisal to market value at purchase. Your base year is set at the full reassessed value, and every subsequent year grows from there.
On a $500,000 home where the previous owner's appraised value was $350,000, the difference between your Year 1 school tax and your Year 2 school tax can be roughly $1,500 or more per year — and that is before county, city, and special district taxes, which follow the same reset pattern. Buyers who budget only for the Year 1 bill are routinely caught off guard.
What to do: budget for the Year 2 tax rate — not the Year 1 rate — from the day you close. Ask your lender to model escrow at the reassessed value, not the seller's prior appraisal. This is one of the most practical financial planning steps a California relocating buyer can take.
Your Texas Driver's License Address Must Exactly Match Your Deed
County Appraisal Districts routinely reject homestead exemption applications because the address on the Texas driver's license or ID card does not exactly match the property address as recorded on the deed. This is not a minor formality — it is a hard filter. Applications are returned, and you lose weeks while you sort it out.
The most common mismatches are street suffix abbreviations. Your deed may read "123 Hill Country Road" while your driver's license was printed as "123 Hill Country Rd" — or your license says "Avenue" but the deed says "Av" (or vice versa). These are treated as different addresses by appraisal district software. Even a missing apartment number or a difference in capitalization can trigger a rejection.
Before filing your homestead exemption:
- Pull the exact address format from your recorded deed or closing statement.
- Compare it character-for-character with the address printed on your new Texas driver's license or state ID.
- If they do not match — even by a single suffix abbreviation — visit a Texas DPS office to have the license reissued with the correct address before you file. Updating the license is free; re-filing a rejected exemption application costs you time and potentially months of lost savings.
Texas DPS allows address changes on existing licenses at no charge. You do not need to retake a photo or renew early. Visit any DPS regional office with your deed or closing documents and request a corrected card.
Do Not Pay Someone to File Your Homestead Exemption — It Takes 5 Minutes and Is Completely Free
Shortly after your deed is recorded, you will likely receive an official-looking direct-mail letter — sometimes printed on paper that mimics government stationery, sometimes bearing language like "Homestead Exemption Filing Service" or "Notice: Action Required — Homestead Exemption." These letters are from third-party companies, not from your county appraisal district, and they offer to file your homestead exemption for a fee of $50 to $100 or more.
These solicitations target new homeowners specifically because the window after closing is when people feel uncertain about what paperwork is required. The letters create a sense of urgency — implying that if you do not act quickly through their service, you will lose your exemption or face penalties. This is not true.
The reality:
- Filing the homestead exemption is completely free. There is no filing fee, no processing fee, and no service charge from any county appraisal district in Texas.
- Filing takes approximately 5 minutes online. Every Hill Country appraisal district (Bexar, Kendall, Comal, and others) offers a straightforward online filing portal. You complete Form 50-114, upload your Texas driver's license and proof of ownership, and submit.
- You do not need anyone's help. The form is simple, and appraisal district staff will answer questions by phone at no cost.
- Paying a third party does not speed up your application or improve your chances of approval. The company files the exact same form you would file yourself — and keeps your money.
If you receive one of these letters, discard it. Then go to your county appraisal district website and file the exemption yourself — for free, in minutes. Links to every Hill Country appraisal district are listed in the "County Appraisal District Filing Links" section above.
Common Pitfalls to Avoid
After years of working with relocating buyers, these mistakes cost people the most money:
Assuming your lender handles it
Your mortgage company pays your property taxes through escrow, but they do not file your homestead exemption. This is your responsibility. Lenders do not do this for you, and they generally will not remind you.
Forgetting the over-65 exemption
If you are 65 or older, the additional $60,000 school exemption and the school tax ceiling are extremely valuable. Indicate your age on the homestead exemption application so the appraisal district applies the additional benefit. If your birthday falls after April 30, you cannot file by that deadline, but you can still apply once you turn 65. File promptly once you become eligible.
Paying a third party to file
Filing the homestead exemption is free and takes about five minutes online. Do not respond to direct-mail solicitations offering to file for a fee — they target new homeowners after closing and provide no benefit over filing yourself. See the "Do Not Pay Someone to File" warning in the Critical Warnings section above.
Frequently Asked Questions
These are the questions I hear most often from relocating buyers. If your situation is unusual, your county appraisal district or a tax professional can help.
Do I have to refile every year?
No — once filed, the exemption stays in place as long as you occupy the home as your principal residence. You may receive a periodic verification notice from your county appraisal district; respond promptly to avoid removal. See the <a href="#five-year-verification">5-Year Verification</a> section above for details.
Can I claim the homestead exemption on a second home or rental?
No — the exemption is limited to your principal residence. See the "Who Qualifies" section above for the full eligibility rules, including temporary absences and spouse provisions.
I'm a veteran with a VA disability rating — do I still file the homestead exemption?
Yes — file for both the standard homestead and the disabled veteran exemption at the same time. See the "Disabled Veterans: Separate, Additional Exemptions" section above for rating-specific amounts and filing requirements.
What happens if I miss the April 30 deadline?
You can file late for up to two years after the taxes become delinquent and receive a refund for taxes overpaid, but the process is slower than filing on time. See the "Missed the April 30 deadline" note in the Deadlines section above.
Does the homestead exemption cover MUD and PID taxes?
MUDs are taxing units that levy ad valorem property taxes and may offer their own homestead exemption. The 10% appraisal cap applies to MUD tax purposes, but the cap limits appraised value — it does not cap the MUD tax rate. If the MUD raises its rate, your total MUD tax bill can increase by more than 10%. PIDs are different: PID assessments are special assessments for infrastructure, not ad valorem taxes, and are not reduced by the homestead exemption or the 10% appraisal cap.
I'm buying a new construction home — does the exemption apply?
Yes, once you close and occupy the home as your principal residence. Your first tax bill may reflect a lower, partial-construction value, and the following year's bill will jump to full market value — budget for the Year 2 rate from day one. See the "Year Two Tax Bill" warning in the Critical Warnings section and the filing deadlines above.
What if my property's appraised value is below $140,000?
The exemption cannot reduce your taxable value below zero. If your home is appraised at $120,000, the $140,000 exemption reduces your school-district taxable value to $0 — you owe no school district property taxes that year. The excess amount does not carry over or generate a credit.
File Once, Protect Yourself Every Year
The Texas Homestead Exemption is one of those rare government programs that is simple to understand, easy to access, and genuinely valuable. It reduces your property tax bill by $140,000 in school-district taxable value, limits annual appraisal increases to 10%, and — if you are 65 or older — can freeze your school taxes at today's level. The only catch is that you have to file.
If you are relocating to the Hill Country and have questions about your specific situation — when to file, which county to file with, or how the exemption interacts with your overall tax picture — I am happy to walk through it with you. A ten-minute conversation about your closing date and property details can save you thousands.
For a broader look at Texas property taxes and how they compare to California, see the guide to why California buyers underestimate Texas property taxes. For a side-by-side Prop 13 comparison, review the Prop 13 vs. Texas property tax breakdown. And for the full cost-of-living picture, see the California vs. Texas cost of living comparison.
Written by
Bill Ross
Hill Country Homesteads Group, brokered by KW Boerne
Bill Ross is the founder of Hill Country Homesteads Group, a Texas real estate practice serving Boerne, Fair Oaks Ranch, San Antonio, and the surrounding Hill Country communities. Drawing on nearly four decades in high-tech sales and marketing, Bill offers a direct, strategic, and client-first framework. Recognized in USA Today and The Washington Post for his relocation expertise, Bill delivers deep market knowledge and clear, practical guidance.
Related Guides
Sources
- Texas Tax Code §11.13 — General Homestead Exemption. statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Tax Code §11.13(b) — $140,000 school district homestead exemption amount (increased from $100,000 by subsequent legislation following Proposition 4, November 2023). statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Tax Code §11.13(c) — Additional $60,000 exemption for disabled/over-65 homeowners (increased from $10,000 by Proposition 4, November 2023). statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Tax Code §11.43 — Application for homestead exemption; filing deadline (April 30). statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Tax Code §11.431 — Late application for homestead exemption (up to two years after delinquency date). statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Comptroller of Public Accounts — Property Tax Basics. comptroller.texas.gov/taxes/property-tax/
- Texas Comptroller of Public Accounts — Property Tax Exemptions. comptroller.texas.gov/taxes/property-tax/exemptions/
- Texas Comptroller of Public Accounts — Residence Homestead Exemption Forms and Filing. comptroller.texas.gov/taxes/property-tax/exemptions/residence-homestead/
- Texas Comptroller of Public Accounts — County Appraisal District Directory. comptroller.texas.gov/taxes/property-tax/county-directory/
- Texas Comptroller of Public Accounts — Property Tax Rates; Boerne ISD 2025 adopted rate of $1.0109 per $100 of taxable value. comptroller.texas.gov/taxes/property-tax/rates/
- Texas Tax Code §11.261 — Residence Homestead Tax Ceiling for Over-65 or Disabled Homeowners; portability provisions. statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- County appraisal district websites: Bexar (bcad.org), Kendall (kendallad.org), Comal (comalad.org), Guadalupe (guadalupead.org), Medina (medinacad.org), Bandera (bancad.org), Kerr (kerrcad.org), Gillespie (gillespiecad.org), Blanco (blancocad.com).
- Texas Tax Code §11.42(f) — Defines homestead qualification as requiring both an ownership interest and use as the owner's principal residence; the exemption begins when the later of these two conditions is met. statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Tax Code §11.43(h) — Pro-rated homestead exemption for new homeowners who acquire and occupy the residence after January 1; exemption takes effect when both ownership and principal-residence use are satisfied, and is pro-rated for the remainder of the tax year. statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Tax Code §23.23 — Appraisal limitation on residence homesteads; 10% annual cap on appraised value increases for homesteaded properties. statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm
- Texas Tax Code §11.22 — Disabled Veterans and Surviving Spouse Property Tax Exemption; 100% exemption for 100% service-connected disability, tiered exemptions for partial ratings. statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
- Texas Senate Bill 1801 (88th Legislature, 2023) — Requires county appraisal districts to verify homestead eligibility at least once every five years. capitol.texas.gov/tlodocs/88R/billtext/html/SB01801F.htm
Last updated: June 22, 2026. Tax rates and exemption amounts reflect 2025–2026 published data. Proposition 4 (November 2023) increased the school district homestead exemption from $40,000 to $100,000 and the over-65/disabled additional exemption from $10,000 to $60,000. Verify current rates with your county appraisal district.