Texas General Residence Homestead Exemption
This is the basic exemption on which most other exemptions are predicated. Thanks to 2025 legislation, a homestead exemption removes $140,000 of a property’s value for school taxes. In addition, the homestead cap prevents the appraised value of a home from increasing by more than 10% each year. The homestead can be combined with other exemptions, including the over-65 exemption, disabled persons, and disabled veterans exemptions. Many counties and taxing bodies, such as school districts and MUDs, offer additional reductions for homestead properties. These are optional, so there can be significant variation across counties and taxing bodies. These optional exemptions can be up to 20% of a home’s appraised value and have a minimum reduction of $5,000.
In order to be eligible for a homestead exemption, a homeowner needs to meet certain criteria:
The home must be the taxpayer’s primary residence.
The homeowner cannot have another primary residence.
The taxpayer must own a financial interest in the property.
Identification documents must be provided to prove ownership, along with information such as deeds.