Property taxes are one of the biggest and fastest-rising costs of homeownership in Texas. To ease that burden, Texas voters approved Texas Proposition 13) on November 4, 2025. This constitutional amendment raised the general homestead exemption for school district property taxes from $100,000 to $140,000, and it applies retroactively to the 2025 tax year.
Here's how Texas homestead exemptions like Proposition 13 work, who qualifies, and what it means for your 2025 property tax bill.
What You Need to Know About Prop 13
What Passed: Texas voters approved raising the standard school-tax homestead exemption from $100,000 to $140,000.
When It Takes Effect: The higher exemption applies retroactively to your 2025 tax bill.
When Voters Approved It: The constitutional amendment passed at the November 4, 2025 election.
Who It Helps: All Texas homeowners with a homestead exemption save money.
What The New Homestead Exemption Includes
Here's how the amounts changed for Texas homeowners:
General exemption increase: The first $140,000 of your home's taxable value (up from $100,000) is exempt from school district property taxes. This means you could save hundreds of dollars per year.
Added relief for seniors and disabled homeowners: Seniors and disabled Texans have a Texas over-65 exemption that now provides an additional $60,000 (up from $10,000) reduction, bringing their total to $200,000. Proposition 11 (SJR 85), also on the November 2025 ballot, delivered that increase.
Here's how the updated reduction amounts compare:
Exemptions You Receive | Total Reduction to Your Assessed Value |
|---|---|
General homestead exemption | $140,000 |
General homestead exemption + over-65 or disabled persons exemption | $200,000 |
Note that these exemptions apply only to school district property taxes, which are typically the largest portion of a property tax bill in Texas. They don't affect county or city taxes. You cannot combine the senior and disabled exemptions; it's one or the other.
Homeowners aged 65 or older, or those with a disability, also receive a "ceiling" or "freeze" on their school taxes. This means the actual dollar amount they pay in school taxes is frozen in the year they qualify.
Their school tax bill will not increase, even if their home value or the tax rate rises. The senior homestead exemption of $200,000 is subtracted from your home's assessed value the year you turn 65.
How Much Homeowners Could Save
According to state estimates, the jump from a $100,000 to a $140,000 exemption could save the average Texas homeowner around $350 to $500 per year on school district property taxes, depending on the local tax rate.
For homeowners who are 65 or older or disabled, the combined exemption reaches $200,000. In practice, this translates to an average annual savings of $900 or more. In some districts, the larger exemption means seniors with modest home values don't have to pay any school property taxes.
Here are a few examples of how much homeowners can save:
Scenario | Home Value | School Tax Rate | Old Rule ($100K Exemption) | New Rule Under Prop 13 & 11 ($140K / $200K) | Annual Savings |
|---|---|---|---|---|---|
Typical homeowner | $350,000 | 1.00% | ($350,000 - $100,000) × 1.00% = $2,500 | ($350,000 - $140,000) × 1.00% = $2,100 | $400 |
Senior/disabled homeowner | $320,000 | 1.05% | ($320,000 - $100,000 - $60,000) × 1.05% = $2,310 | ($320,000 - $200,000) × 1.05% = $1,260 | $1,050 (+ a new, lower tax ceiling) |
Typical homeowner with a medium-high-value home | $500,000 | 1.20% | ($500,000 - $100,000) × 1.20% = $4,800 | ($500,000 - $140,000) × 1.20% = $4,320 | $480 |
Typical homeowner with a high-value home | $1,000,000 | 1.25% | ($1,000,000 - $100,000) × 1.25% = $11,250 | ($1,000,000 - $140,000) × 1.25% = $10,750 | $500 |
Homeowners without a mortgage or escrow account pay taxes directly to the county on its due date, so they see the lower bill right away.
However, if you pay through a mortgage escrow account, you may not see the savings in your monthly payment immediately. Your lender applies the lower bill after it reanalyzes your escrow account, and any overpayment is refunded to you.
How Much Are You Over Paying?
Can My Home's Value Still Rise? The 10% Appraisal Cap
A homestead exemption also limits how fast your home's taxable value can grow. Once your exemption is in place, your appraised (taxable) value can rise no more than 10% per year, plus the value of any new improvements you make. This cap protects you from sudden spikes in your assessment, even when local home prices jump.
Application And Verification Process
Every qualifying homeowner should have a homestead exemption in place.
Follow these steps to apply for a homestead exemption in Texas in 2026:
Check your eligibility: To qualify for a homestead property tax exemption, the home must be your primary residence.
Check your homestead exemption status in Texas: If you already filed in the past, check your homestead exemption status through your county appraisal district (CAD) before submitting a new application.
Apply through your CAD: Most Texas CADs have online portals, but some smaller and rural ones only accept PDFs or in-person filing.
If you have an online portal, enter your property address or CAD account number and confirm ownership details.
If your CAD doesn't have an online portal, fill out the Texas Comptroller of Public Accounts' Application for Residence Homestead Exemption (Form 50-114) and mail or drop it off at your local CAD.
Start the online application: If you're filing through the online portal, click on "File Homestead Exemption" once you've confirmed ownership details.
Most CADs will then request a scanned copy or photo of your driver's license or state ID. Double-check the exemption type (homestead) and property details, then submit and save the confirmation page as a PDF for your records.
Track your application: Most CAD online portals allow you to check your application status online.
Approval can take several weeks, sometimes up to 90 days, depending on your county and the time of year.
After receiving approval for an exemption, you'll need to watch for a verification notice from your appraisal district. From 2023, appraisal districts must verify homestead exemptions _at least once every five years_. If you don't respond to the notice, you may lose your exemption and pay more in taxes.
Staying on top of these deadlines can be challenging, especially when you have numerous other tasks to attend to. Fortunately, Ownwell can help monitor your exemption status, respond to verification notices, and make sure you don't miss out on savings.
Important deadline: Across Texas, the deadline to file for an exemption to apply to the current tax year is April 30.
Since Both Passed, When Did They Go Into Effect?
Prop 13 passed during the November 4, 2025, election; the $140,000 exemption applies retroactively to the 2025 tax year.
That means:
The new exemptions were retroactively applied to your January 1, 2025 property values.
Appraisal districts will recalculate your taxable value using the higher exemption amount.
Tax bills sent in October 2026 (for the 2025 tax year) will already reflect the new, lower taxable value.
However, you need to maintain your homestead exemption actively. Every time you move or fail to respond to a verification notice (sent every five years), you risk losing your exemption and forfeiting property tax savings.
Is There a Property Tax Exemption for Businesses?
Proposition 13 has no bearing on commercial properties or businesses. However, Proposition 9 (HJR 1) also passed, raising the business tangible personal property exemption to $125,000).
This means companies with equipment or inventory valued below that threshold no longer pay property taxes on it. This increase is especially beneficial for small retailers, service providers, and light manufacturers.
Filing a homestead exemption and staying on top of property tax rules isn't always simple, especially when laws are constantly changing. Here are some tools and services that can help you keep more money in your pocket:
Official forms and information: See the Texas Comptroller's property tax exemptions page and the official Application for Residence Homestead Exemption (Form 50-114).
What's the Impact of These Property Tax Exemptions on Local Communities?
For local governments, though, this change comes with trade-offs. Although the state has promised to replace any revenue school districts lose due to the higher exemptions, cities and counties don't receive the same support. If they collect less from business property taxes, they may face tighter budgets.
They could eventually respond by cutting services or shifting a greater portion of the tax burden onto other property owners. Monitor property tax trends and news about reasons to appeal property taxes to learn more.
Texas Homestead Exemption FAQs
1. Is Voter Approval Required for These Changes?
Yes. Because this is a constitutional amendment, Texas voters approved it at the November 4, 2025, election.
2. How Much Could Homeowners Expect to Save on Their Tax Bill?
On average, homeowners can expect to save $350 to $500 per year, and about $900 for seniors or Texans with disabilities. Actual savings depend on the home's value and the school district's rates.
3. What Is the Over-65 Tax Ceiling, and How Does Prop 13 Affect It?
The tax ceiling "freezes" the dollar amount of school taxes a senior pays. Now that Prop 13 passed, a qualifying senior receives the higher $140,000 exemption plus the $60,000 add-on, for a total of $200,000. Their school tax bill is recalculated at that lower amount, and that new, lower amount becomes their permanent tax ceiling.
4. Does the Texas Homestead Exemption Lower School Taxes?
Yes. It removes $140,000 of your home's value from school-district taxation, which is typically the largest part of a Texas property tax bill. Seniors and Texans with disabilities can remove up to $200,000.
5. How Much Is the Texas Homestead Exemption Now?
The general school-district exemption is $140,000. Homeowners who are 65 or older or have a disability can claim up to $200,000 combined.
6. Do I Have to Reapply for the Homestead Exemption Every Year?
No. You file once. Appraisal districts will verify your exemption at least once every five years, so respond promptly if you receive a verification notice in the mail.
7. How Do I Apply for the Texas Homestead Exemption?
File Form 50-114 with your county appraisal district. File by April 30 to have it apply to the current tax year.
Never Miss a Deadline or a Dollar of Savings
Keeping track of Texas property tax laws, deadlines, and verification notices can feel like a full-time job. Missing a single deadline could cost you thousands in lost savings. Ownwell's suite of services ensures you're always paying the absolute minimum.
Exemption Monitoring & Filing: We ensure your homestead exemption is always active and handle any verification requests from the county. Did you forget to file in a previous year? We can file for retroactive exemptions to claim the savings you're owed from up to two years prior.
Expert Property Tax Protests: If your property's assessed value is too high, our team of local experts will build a data-driven case and manage your property tax protest from start to finish. You only pay if we win you savings.
Stop overpaying and start saving. Let Ownwell handle the hassle of property taxes so you can have peace of mind.
