If you own a home in Texas, you are likely aware of the homestead exemption. This is the most basic way that a homeowner can save on their property taxes, and it generally opens the door for other exemptions down the line. Whenever you buy, move, or inherit a property, the first priority should be establishing this exemption, as this simple step can save hundreds or even thousands of dollars.
We have covered this topic numerous times, but have not necessarily touched on the many varieties of exemptions that can help homeowners. There are a myriad of exemptions and a slew of benefits that fall beyond the basic options. In this article, we will cover many of the exemptions that benefit homeowners and how they benefit taxpayers.
The Homestead Exemption
The bedrock of Texas property tax savings, this saw a large overhaul in 2025. Primarily aimed at school district taxes, the largest tax burden in Texas, the homestead exemption has many benefits. First, it reduces the appraised value used for school taxes by $140,000. Second, it establishes a 10% cap on appraised value, which means it can never go higher than 10% every year. Since appraised value is tied directly to market value, that means that homeowners will be shielded if real estate prices spike. Many counties and other taxing bodies also offer further reductions if a homeowner has a homestead exemption. This can be a discount of up to 20% of appraised value, or a minimum of $3,000. Every county and taxing body is different, so this could vary wildly across the state. This exemption can only be applied to your primary residence.
Over-65 Homestead Exemption
This does not replace the homestead exemption; rather, it improves it. When a homeowner turns 65, they can enhance their original exemption. This adds an appraised value reduction of $60,000 to school taxes. This means that the qualifying homeowner will see a total exemption of $200,000. This is often high enough to eliminate the school tax bill entirely. Like the general homestead exemption, counties and taxing bodies might offer discounts at the local level.
Disabled Persons Exemption
Like the over-65 option, this reduces school taxes by $60,000. This exemption is for people who have a disability as defined by the Federal Old-Age, Survivors, and Disability Insurance Act. The homeowner must present documentation, such as federal disability benefits or a doctor’s statement. In addition, blind people over the age of 55 can receive this exemption as well. While this can be used with the standard homestead exemption, it cannot be used with the over-65 one. A homeowner that qualifies for both will have to pick one, though both offer the same benefit.
Disabled Veterans Exemption
Often confused with the disabled persons exemption, this uses different criteria and offers a different benefit. This exemption is based on the disability rating assessed by the U.S. Department of Veterans Affairs for service-related disabilities. The exemption is on a sliding scale, with higher disability ratings leading to a larger exemption. Veterans with a disability rating of 100%, or those over 65 with a disability rating of 10% or more, may qualify for a complete and total elimination of taxes. For those with disabilities below 100%, this exemption can be used with other exemptions to maximize savings. This includes the standard homestead, over-65, and disabled persons exemptions. Like other homeowners, a veteran cannot use the disabled persons and over-65 exemptions at the same time. The disabled veteran’s portion of the exemption does not need to be applied to a homestead, and can instead be applied to a different property the veteran owns.
| Disability rating | Value exempted |
| 10%–29% | $5,000 |
| 30%–49% | $7,500 |
| 50%–69% | $10,000 |
| 70%–100% | $12,000 |
Surviving Spouse of a Disabled Veteran Exemption
After a disabled veteran passes away, it is possible for their spouse to inherit their exemption. As long as the spouse does not remarry and maintains the home as a primary homestead, they can continue to use the veteran’s complete reduction percentage. This only applies to exemptions that were used for the home. This includes instances of 100% disability, which means the spouse would see a total elimination of taxes.
Surviving Spouse of a Veteran Killed in the Line of Duty
This is separate from the disabled veterans exemption and is for spouses of veterans who were killed in the line of duty or fatally injured. In such cases, the spouse can get a 100% reduction on the taxes of their homestead. This will remain as long as the spouse stays unmarried. If they move to a new home and make it their principal residence, then the exemption moves with them. The exemption amount remains at the dollar amount needed for a 100% exemption at the initial homestead. If the total taxes are higher at the new home, then the spouse will pay anything over the previous amount.
Surviving Spouse of a First Responder Killed in the Line of Duty
This exemption works similarly to the one for the spouses of veterans killed in action does. It provides a 100% homestead reduction for the spouses of firefighters, police, corrections officers, paramedics, and more who die or are fatally injured in the line of duty. To qualify, the first responder must have been covered by the Employees Retirement System of Texas (ERS). The exemption will follow the spouse to a new homestead, but is locked in at the dollar amount of the first home, meaning it might not be a 100% exemption if the spouse moves to a home with higher value. The exemption lasts as long as the spouse remains unmarried.
Exemptions While Replacing a Destroyed Home
Texans also have options to preserve their homestead exemption if their home is burned, destroyed by wind, or ruined by flooding. Taxpayers may keep their existing exemptions as long as they start construction of a new home on the property within two years. If the home was destroyed by an event that occurred during a declared disaster , this window is opened to five years. In cases of fire, the entire value of the home is removed from the appraised value of a property, rather than keeping the exemption. All of these options help shield a homeowner or family going through one of the hardest times imaginable.
Temporary Disaster Exemption
For homes and businesses damaged by major disasters, there is another exemption to use. This is dedicated to damage done during declared disasters, typically hurricanes, floods, or freezes. These must be declared by the governor of Texas, not FEMA or other agencies. This exemption shaves off a portion of the appraised value depending on how extreme the damage was. It is broken down into four categories, with the largest being a total exemption. This can be confused with the previous options mentioned for destroyed property, but is a separate option entirely.
Damage levels and their exemptions
Appeals Can Enhance Exemptions
While exemptions are varied and numerous, they are only part of lowering your property tax bill. Property tax appeals can be used to produce further savings. These are protests directly with your appraisal district, which challenge or correct the appraised values for homes, businesses, and more. By lowering these values, you can reduce your appraised value before exemptions are applied. This brings in even more savings. In addition, appeals can be used in cases where exemptions do not apply, such as rental homes or certain businesses. By using these two techniques together, you can earn a large break on your taxes.
O’Connor Offers Free Homestead Exemption Assistance
For over 50 years, we at O’Connor have been helping Texans get property tax reductions through exemptions, appeals, and lawsuits. We offer full homestead exemption support as a complimentary service to our clients. While many other companies offer to file exemptions for free, they often charge a percentage on the back end. Our process is 100% free, and you will never be charged a dime for anything involving a homestead exemption.
When you enroll with us, we will also protest your taxes every year. This ensures that you are only paying your fair share and that your exemptions can have the biggest effect. There are no upfront costs for these appeals, and you will only pay a percentage of your savings if we can lower your taxes. We will also give you a client success consultant, who will act as your primary point of contact throughout the process, while also being your advocate with our attorneys, hearing officers, and tax experts. We also offer concierge visits for both homes and businesses.
Frequently Asked Questions About Texas Exemptions
Q: I am a disabled veteran. Do I qualify for the disabled persons exemption?
A: Not always, as each has different criteria. Generally, to get the disabled persons exemption, you must be eligible for payments from the Federal Old-Age, Survivors, and Disability Insurance Act.
Q: Can I have the disabled persons exemption and the over-65 exemption at the same time?
A: No, you can only have one. Each offers the same benefit, so one is not better than the other.
Q: Can a married couple have homestead exemptions for two different homes?
A: No, a married couple can only apply a homestead exemption to one home.
Q: I am a disabled veteran over the age of 65. What exemptions would I qualify for?
A: You would qualify for the homestead, over-65, and disabled veterans exemptions. You may qualify for the disabled persons exemption as well, but that is mutually exclusive with the over-65 exemption.
