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Homestead savings · 2027 tax year

How Much Does the Homestead Exemption Save in Texas?

The answer depends on one number you can find on your tax bill: your school district's tax rate. Here is the formula, worked examples, and the extra savings that come with the exemption over time.

Updated · Checked against official sources listed below

The formula

Annual school-tax savings ≈ exemption amount × school district tax rate ÷ 100

Texas tax rates are stated per $100 of value. Use your school district's total rate (maintenance and operations plus debt service) from your tax bill. The general school exemption is $140,000; homeowners 65 or older, or disabled, add $60,000 for $200,000 in total.

Worked examples

These use hypothetical school tax rates. Substitute your district's rate for a real figure.

Estimated annual school-tax savings from the homestead exemption at hypothetical rates
School rate per $100General exemption ($140,000)65+ or disabled ($200,000)
$0.80$1,120$1,600
$1.00$1,400$2,000
$1.20$1,680$2,400

Local exemptions add more

Cities, counties and special districts may offer their own homestead exemptions, including a percentage exemption of up to 20% of value (at least $5,000 where adopted) and additional amounts for homeowners 65 or older or disabled. Apply each one to that unit's rate and add it to your school savings. Your notice or tax bill lists which ones apply to you.

Savings that grow over time

  • The 10% cap. Starting the year after you qualify, your appraised value generally can't rise more than 10% a year plus new improvements (Tax Code §23.23). In a fast-rising market, the cap can be worth more than the exemption itself.
  • The 65+ tax ceiling. School taxes on the homestead are generally limited to the level of the year you qualified, unless you make improvements.

Make sure you get it

  1. Check your notice or tax bill

    Look for a homestead exemption on the school, city and county lines.

  2. Apply if it’s missing

    File Form 50-114 with your appraisal district. Our homestead exemption guide walks through it.

  3. Then check your value

    An exemption lowers the taxable part of your value. If the value itself is too high, a protest lowers it further.

See whether your appraised value is too high

The free check compares your appraisal district record with similar homes nearby in about a minute.

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Frequently asked questions

How much does the homestead exemption save in Texas?
Multiply the exemption by your school district’s total tax rate per $100. For example, at a hypothetical school rate of $1.00 per $100, the $140,000 school exemption saves about $1,400 a year. Local exemptions from your city or county add to that.
Where do I find my school district tax rate?
Your property tax bill lists each taxing unit and its rate. Your county tax assessor-collector’s website also publishes current rates.
How much more do homeowners 65 or older save?
They receive an additional $60,000 school exemption, and their school taxes on the homestead are generally capped by a tax ceiling. At a hypothetical $1.00 per $100 rate, the additional exemption alone is worth about $600 a year.
What if my home is worth less than the exemption?
An exemption can’t reduce taxable value below zero. If your home’s appraised value is below the exemption amount, your school taxable value is $0 and the savings equal your full school tax.

2027 protest season

See if your home is over-assessed

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Sources

General information, not legal or tax advice. Laws, deadlines and exemption amounts change; confirm details with your appraisal district or the Texas Comptroller before you rely on them.

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