Homestead Exemption
Two separate Texas protections share this name: the residence homestead exemption, which removes part of an owner-occupied home's value from property taxation under Tax Code Section 11.13, and the constitutional protection of a homestead from forced sale by most creditors under Article XVI, Section 50 and Property Code Chapter 41.
The Texas residence homestead exemption removes $140,000 of a home's appraised value from school district taxes, plus $60,000 more for owners 65 or older or disabled (Tex. Tax Code § 11.13(b)-(c)). The owner applies to the appraisal district before May 1 and need not reapply each year (§ 11.43).
In everyday use, "homestead exemption" usually means the property tax break. Chapter 11 of the Tax Code grants it to an individual who owns and occupies a home as a principal residence, and the county appraisal district administers it. The amounts changed recently: 2025 legislation (S.B. 4 and S.B. 23) raised the school district exemption to $140,000 and the additional exemption for owners 65 or older or disabled to $60,000, with the amendments shown as effective November 4, 2025.
Texas law also uses the term for the much older protection against creditors. Article XVI, Section 50 of the Texas Constitution protects the homestead of a family or a single adult from forced sale for most debts, and Chapter 41 of the Property Code defines its size. The two protections have different tests. A home can meet one and not the other.
- Tax exemption
- $140,000 school district; $60,000 more if 65 or older or disabled (Tex. Tax Code § 11.13(b)-(c))
- Deadline
- Apply before May 1; late application up to two years after the tax delinquency date (§§ 11.43(d), 11.431)
- Where filed
- Chief appraiser of the appraisal district where the home is located (§ 11.43(a))
- Appraisal cap
- Appraised value of a homestead may rise no more than 10% a year, plus new improvements (§ 23.23)
- Creditor protection
- Urban up to 10 acres; rural up to 200 acres (family) or 100 (single adult) (Tex. Prop. Code § 41.002)
What the tax exemption is worth
Every school district must exempt $140,000 of a qualifying homestead's appraised value (Tex. Tax Code § 11.13(b)). An owner who is 65 or older or disabled receives another $60,000 from the school district (§ 11.13(c)), and that owner's school taxes are also subject to a tax ceiling that starts when the home first qualifies, is lowered when the district's maximum compressed rate falls or the exemptions increase, and can rise for new improvements (§ 11.26). Cities, counties and other taxing units may adopt a local option exemption of up to 20 percent of appraised value, with a $5,000 minimum where one is adopted (§ 11.13(n)).
A second benefit starts the year after the home first qualifies. Section 23.23 limits increases in a homestead's appraised value to 10 percent over the prior year, plus the value of new improvements, for as long as the owner or the owner's spouse or surviving spouse keeps qualifying.
Protection from creditors
Article XVI, Section 50(a) protects a homestead from forced sale for the payment of all debts except those it lists, among them purchase money, taxes on the property, certain written contracts for work and materials, refinances of existing liens, and home equity and reverse mortgage loans that meet the constitution's detailed requirements. A judgment creditor holding an ordinary money judgment is not on that list. A judgment lien does not attach to exempt homestead property (Tex. Prop. Code § 52.001), and a writ of execution cannot be levied on it.
The limits are in acres, not dollars. Section 41.002 allows up to 10 acres for an urban homestead, which may also be used as a place to exercise a calling or business, and up to 200 acres for a family or 100 acres for a single adult for a rural homestead. Temporary renting does not end homestead character unless another homestead has been acquired (§ 41.003), and proceeds of a homestead sale are protected from creditors for six months (§ 41.001(c)).
Designating the homestead
A home listed as the owner's residence homestead on the most recent appraisal roll is treated as designated for creditor purposes too, unless the owner records a different designation (Tex. Prop. Code § 41.005(e)). Owners with more land than the limits allow may record a voluntary designation with the county clerk under Section 41.005(c).
If no designation exists when a writ of execution issues, the creditor may serve a notice to designate. The debtor then has until 10 a.m. on the Monday after 20 days from service to file a designation and plat. Otherwise the court may appoint a commissioner to make it at the debtor's expense and order the excess sold (§§ 41.021-.024).
Requirements for the residence homestead tax exemption
Section 11.13(j) defines a qualifying residence homestead. The property must be:
- A structure (including a mobile home) or a separately secured and occupied part of one, with up to 20 acres of land and improvements used for the residence, all in identical ownership.
- Owned by one or more individuals, directly or through a beneficial interest in a qualifying trust.
- Designed or adapted for human residence and used as a residence.
- Occupied as the individual's principal residence by an owner, or by a surviving spouse with a life estate.
- The owner's only residence homestead exemption for the year (§ 11.13(h)), with qualification generally measured on January 1 (§ 11.42(a)).
Does the homestead exemption have to be filed every year in Texas?
No. Once allowed, the residence homestead exemption carries forward until the property changes ownership or the owner's qualification changes (Tex. Tax Code § 11.43(c)). The chief appraiser may require a new application only after developing a reason to believe the owner no longer qualifies and giving written notice of that reason (§ 11.43(c-1)). Appraisal districts must review each homestead exemption at least once every five tax years, and an owner whose entitlement ends must notify the appraisal office in writing before May 1.
How long can you claim a homestead exemption in Texas?
As long as the owner owns and occupies the home as a principal residence. A temporary absence of less than two years does not end the exemption if the owner intends to return and does not establish another principal residence. Military service and care in a health or aging facility are also covered (Tex. Tax Code § 11.13(l)). A missed filing can be made up: the chief appraiser must accept a late application filed no later than two years after the delinquency date for that year's taxes (§ 11.431).
How much do you save on property taxes with a homestead exemption in Texas?
The savings equal the exempt value multiplied by each taxing unit's rate, so the figure varies by location. As arithmetic only: at a hypothetical school district rate of $1.00 per $100 of value, the $140,000 school exemption removes $1,400 of school tax a year. Local option exemptions under Tex. Tax Code § 11.13(n) and the 10 percent appraisal cap in § 23.23 add to that, depending on what each local unit has adopted and how fast market values rise.
Can a buyer get the homestead exemption in the year the house is purchased?
Yes, in some cases. A buyer who acquires the home after January 1 may receive the exemption for the rest of that tax year if the previous owner did not receive the same exemption that year (Tex. Tax Code § 11.42(f)). The application for that partial year is due before the first anniversary of the purchase (§ 11.43(d)).
Business owners run into both versions of the homestead. On the tax side, the exemption is limited to property owned by individuals (directly or through a qualifying trust), so a house titled in an LLC does not qualify under Section 11.13(j). On the creditor side, a personal guarantee that turns into a judgment generally cannot reach the owner's homestead, while rental property, a second home and land beyond the acreage limits remain exposed. An urban homestead can include space used for the owner's business, which matters for professionals who work from home.