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 from the school-district taxable value only
- School taxable value: $210,000
The $140,000 exemption does not come off county, city, or MUD taxes. It reduces the value taxed by the school district. School district rates around Houston are typically about 0.9% to 1.1%, not the full combined rate of about 2.2%.
Estimated savings = $140,000 × 0.9% to 1.1% ≈ $1,300 to $1,500 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?
About $1,300 to $1,500 per year. The $140,000 exemption applies only to school district taxes, and those rates are usually about 0.9% to 1.1%.
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
A Harris County bill is the sum of each taxing unit. This site does not use a single effective rate. The homestead exemption reduces school district taxes, and some other units offer their own exemption.
On a $400,000 home:
- Combined bill before the exemption, at about 2.25%: ~$9,000
- School-tax savings from the $140,000 exemption: about $1,300–$1,500
- Bill with the homestead exemption: about $7,500–$7,700
That savings comes off the school portion of the bill.
How to Maximize Savings
- File homestead immediately after purchase
- Combine over-65 if eligible
- Check for county-specific exemptions
- Protest inflated valuations annually
Texas Property Tax Estimator
All 254 counties. Each taxing unit is calculated on its own.
Loading taxing units for Harris County.
Lowers the value before exemptions. It is not a protest result.
Source: Texas Comptroller of Public Accounts, Tax Rates and Levies, tax year 2025, latest Comptroller file, posted January 2026. Local exemptions are not included unless you enter them, last checked 2026-10-07. All data sources