How much did Texas raise the homestead exemption in 2026?

The school district homestead exemption rose from $100,000 to $140,000, and the additional exemption for homeowners 65 or older jumped from $10,000 to $60,000, bringing their combined exemption to $200,000.

Does the new homestead exemption apply automatically?

No — it only applies if you've filed a homestead exemption application with your county appraisal district; it's a one-time, free form, and there's no reason to pay someone to file it for you.

How much does the new exemption save on a $400,000 home?

A non-senior homeowner now pays school taxes on $260,000 of value instead of $300,000, while a senior homeowner's taxable base for school purposes drops to $200,000, half the home's appraised value.

Does the exemption change affect the tax rate too?

No — the exemption itself is locked in, but local taxing units set 2026 tax rates between September and October, so the actual bill depends on both the exemption and whatever rate is set that fall.

When does the exemption increase take effect?

It applies retroactively to the 2025 tax year after Proposition 13 passed in November with about 79 percent voter support.

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What Texas's New Homestead Exemption Saves You in 2026

September 5, 2026

Houston TX| General

Texas voters raised the school district homestead exemption from $100,000 to $140,000 this past November, and if you have not updated your exemption paperwork since then, you are leaving real money on the table. For a homeowner 65 or older, the additional exemption jumped even further, from $10,000 to $60,000, bringing the combined school district exemption for seniors to $200,000. That is not a small adjustment. That is a genuine cut to what you owe every single year.

The Number That Changed

Proposition 13 passed in November with about 79 percent support, which tells you this was not a close call for Texas voters. The $40,000 bump in the school district homestead exemption applies retroactively to the 2025 tax year, so if your county has not already reflected it, this fall’s statements should catch up. If you bought your home this year and have not filed a homestead exemption application at all yet, this is the year that mistake costs you the most.

Who Gets the Bigger Break

If you are 65 or disabled, the additional exemption on top of the standard homestead amount went from $10,000 to $60,000. Combined with the base increase, that is a $200,000 exemption against your home’s appraised value for school taxes specifically, which is the largest single piece of most Houston-area tax bills. We have clients who assumed the senior exemption was a minor line item. It is not anymore.

What This Means on a Real Bill

Take a home appraised at $400,000. Before this change, a non-senior homeowner paid school taxes on $300,000 of value after the old $100,000 exemption. Now that same homeowner pays school taxes on $260,000. That is a meaningful drop in the taxable base every single year, not a one-time credit.

For a senior homeowner on that same $400,000 home, the taxable base for school purposes drops to $200,000 once you stack the standard and senior exemptions together. That is half the home’s appraised value removed from the school tax calculation entirely.

What You Have to Do About It

None of this applies automatically if you have never filed a homestead exemption application with your county appraisal district. It is a one-time form, it is free, and there is no reason to pay someone to file it for you. If you closed on a home this year and have not filed yet, do it before the deadline your county lists, because missing the window means paying a full year of taxes you did not have to.

2026 tax rates get set by local taxing units between September and October, so your actual bill depends on both this new exemption and whatever rate your school district and county land on this fall. The exemption is locked in either way. The rate is the piece still moving.

If you are weighing whether now is the right time to buy given how much this changes the ongoing cost of owning, our Buyers Guide walks through the full picture of what owning costs month to month in practice, and our look at rising insurance premiums from yesterday covers the other side of that same monthly number.

Frequently Asked Questions

How much did Texas raise the homestead exemption in 2026?: The school district homestead exemption rose from $100,000 to $140,000, and the additional exemption for homeowners 65 or older jumped from $10,000 to $60,000, bringing their combined exemption to $200,000.
Does the new homestead exemption apply automatically?: No — it only applies if you've filed a homestead exemption application with your county appraisal district; it's a one-time, free form, and there's no reason to pay someone to file it for you.
How much does the new exemption save on a $400,000 home?: A non-senior homeowner now pays school taxes on $260,000 of value instead of $300,000, while a senior homeowner's taxable base for school purposes drops to $200,000, half the home's appraised value.
Does the exemption change affect the tax rate too?: No — the exemption itself is locked in, but local taxing units set 2026 tax rates between September and October, so the actual bill depends on both the exemption and whatever rate is set that fall.
When does the exemption increase take effect?: It applies retroactively to the 2025 tax year after Proposition 13 passed in November with about 79 percent voter support.

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