Top Property Tax Exemptions in Texas (2026 Guide for Homeowners)
Property tax exemptions in Texas reduce the taxable value of your home, lowering your annual property tax bill. These exemptions are governed by the Texas Comptroller of Public Accounts and administered at the county appraisal district level.
If you live in high-tax counties like Harris County, Fort Bend County, or Montgomery County, exemptions can save you thousands annually.
1️⃣ Texas Homestead Exemption
What It Does
Reduces your home’s taxable value for school district taxes by $140,000 (as of recent Texas law updates). Some counties and cities offer additional percentage-based exemptions.
Who Qualifies?
- You own your primary residence
- You live in the home as your main residence
- You file through your county appraisal district
Example – Houston Homeowner
- Home Value: $350,000
- Homestead Exemption: -$140,000
- Taxable Value: $210,000
If the effective rate is 2.2%, savings = ~$3,080 per year.
How to Apply
File Form 50-114 through your local appraisal district before April 30.
2️⃣ Over-65 Exemption
Available if you are 65 or older.
Benefits:
- Additional $60,000 school tax exemption
- Tax ceiling for school district taxes
- May stack with homestead exemption
Why This Matters in Houston
In fast-growing areas like Katy or Sugar Land, rising property values increase tax bills. A tax ceiling protects retirees from spikes.
3️⃣ Disabled Person Exemption
If you qualify for Social Security disability benefits:
- Additional $60,000 school tax exemption
- May combine with homestead
4️⃣ Disabled Veteran Exemption
One of the most powerful exemptions in Texas. Depending on disability rating:
- 10%–90% rating → Partial exemption
- 100% disabled veterans → 100% exemption of residence homestead
This can eliminate property taxes entirely.
5️⃣ Surviving Spouse Exemptions
Spouses of:
- Disabled veterans
- First responders killed in line of duty
- Military members killed in action
May continue receiving exemptions.
Frequently Asked Questions
How much does the Texas homestead exemption save?
Typically $1,500–$3,000 per year depending on county rates and home value.
Do I need to reapply every year?
No. Once approved, it stays unless ownership changes.
Can I have more than one homestead exemption?
No. Only one primary residence can qualify.
Houston-Specific Tax Impact
In Harris County, the effective tax rate often ranges between 2.0%–2.5%.
On a $400,000 home:
- Without exemption: ~$9,000
- With homestead: ~$6,800–$7,500
That’s real money.
How to Maximize Savings
- File homestead immediately after purchase
- Combine over-65 if eligible
- Check for county-specific exemptions
- Protest inflated valuations annually