Texas Homestead Exemption Calculator (2026)

The state-mandated portion removes $100,000 of value from your home before the school district applies its rate. If your home is appraised at $400,000 and your ISD rate is $1.00 per $100, your school tax goes from $4,000 (without exemption) to $3,000 (with exemption) — a clean $1,000 saved.

Cities and counties have the option to add their own homestead exemption — typically 1% to 20% of value, capped at a dollar amount. For example, the City of Austin offers 20%, the Dallas County offers 20%, and many other jurisdictions follow suit. These stack: a homeowner with the state school exemption plus a 20% city exemption and a 20% county exemption can see annual savings of $2,000+ at typical Texas urban rates.

Use the calculator below to see what the state school exemption alone saves you. Local exemptions vary by city — check your CAD's website for what's available at your address.

Most homeowners think the homestead exemption is about the $1,000 a year. After ten years in a hot market, the appraisal cap is doing five times that much for them. They just never see it as a line item.

Once you have a homestead exemption on file, your home's taxable value can rise no more than 10% per year, regardless of market appreciation. In Austin, Dallas, and Houston during 2020–2023, market values jumped 40%+ in three years — but homesteaded homes' taxable values were capped at compounding 10%/year (effectively ~33% over three years). The gap continues every year you stay.

This is why a long-tenured homeowner pays dramatically less property tax than a recent buyer next door with the same market-value home. The 10% cap doesn't transfer to a new owner; the certified value resets to market on resale.

1. Confirm you qualify. You own the home and occupy it as your primary residence on January 1 of the tax year.
2. Find your county appraisal district. Each Texas county has one: DCAD (Dallas), HCAD (Harris), TCAD (Travis), BCAD (Bexar), TAD (Tarrant), and so on.
3. File the application online. Most CADs offer e-filing. You'll need your driver's license (with the homestead address) and the deed or settlement statement.
4. Verify on your next notice. The May 2026 appraisal notice will show the exemption applied. If it doesn't, call the CAD before the protest deadline.

The 10% homestead appraisal cap is the most underrated property tax benefit in Texas. Once you have a homestead exemption on file, your home's taxable value can grow no more than 10% per year, even if market value grows faster. The cap resets only on resale.

Worked example — a $400,000 home in 2020, in a hot Texas market:

• 2020: Market = $400,000. Capped taxable = $400,000 (year-one homestead). Tax at 2.2% = $8,800.
• 2021: Market = $480,000 (+20%). Capped taxable = $440,000 (+10%). Tax = $9,680. Cap saved $880.
• 2022: Market = $580,000 (+21%). Capped taxable = $484,000 (+10%). Tax = $10,648. Cap saved $2,112.
• 2023: Market = $620,000 (+7%). Capped taxable = $532,400 (+10%). Tax = $11,713. Cap saved $1,928.
• 2024: Market = $650,000 (+5%). Capped taxable = $585,640 (+10%). Tax = $12,884. Cap saved $1,416.
• 2025: Market = $670,000 (+3%). Capped taxable = $644,204 (+10%). Tax = $14,172. Cap saved $568.
• Cumulative 5-year savings: ~$6,900 — entirely from the cap, before counting the $100k exemption.

The cap accumulates over time when market growth outpaces 10%/year. In flatter markets, the cap may not bind in some years — the taxable value just equals the market value. Either way, the cap provides downside protection: if you hit a hot market year, you're shielded.

Caveat: the cap is for the taxable value (the value used to calculate tax), not for the appraised market value. The CAD still publishes the market value annually. Lenders, insurance companies, and buyers use the market value, not the capped value.

The over-65 school tax ceiling is among the most generous senior benefits in Texas. The year you turn 65 (or become disabled), your school district tax bill freezes at that year's amount and stays frozen forever — even if home values rise, even if school rates increase.

How it works:

• The school tax ceiling locks in at the school tax you paid in the year you turned 65 (or qualified as disabled).
• Each subsequent year, the school district recalculates what your tax would have been. The lower of that amount or the ceiling is your actual school tax.
• The ceiling continues for the surviving spouse if they are 55 or older when you pass.
• If you sell and rebuy in Texas, you can transfer the percentage benefit of the ceiling to the new homestead (proportional adjustment based on the new home's value), but not the dollar amount.
• City and county taxes are NOT frozen by the state ceiling, but most cities and counties offer their own optional freezes for over-65 homeowners.

Worked example — Austin homeowner who turned 65 in 2020:

• 2020 (year 65): AISD tax = $5,200. Ceiling locks at $5,200.
• 2025 (age 70): Home market value rose 40%, taxable value rose 33% (capped). AISD rate also dropped slightly. Calculated 2025 tax = $6,400. Actual 2025 tax = $5,200 (ceiling). Savings: $1,200/year and growing.
• 2030 (age 75): Calculated tax = $7,800. Actual tax = $5,200. Savings: $2,600/year.

Filing the over-65 exemption is separate from the standard homestead. File with your CAD the year you turn 65 (the exact day doesn't matter — any time during the tax year). If you forget, you can claim retroactively up to two years back in most counties, but you'll have missed the freeze benefit during those years.

Texas offers among the most generous property tax benefits for disabled veterans of any state:

• 10%-29% VA disability rating: $5,000 exemption off appraised value (any property the veteran owns, not just homestead)
• 30%-49% disability rating: $7,500 exemption
• 50%-69% disability rating: $10,000 exemption
• 70%+ or 100% rating with required services: $12,000 exemption
• 100% disability rating (specially adapted housing or 100% P&T): Full property tax exemption on the homestead — you owe zero Texas property tax. Persists for the surviving spouse.
• Surviving spouse of disabled veteran: Continues the deceased veteran's exemption if they have not remarried
• Surviving spouse of service member killed in action: 100% exemption on the homestead

The 100% disabled veteran exemption is significant — a 100%-rated veteran in a $500,000 Texas home pays zero in property tax annually, saving $10,000-$11,000 in a typical urban market. The exemption transfers to a new Texas homestead if the veteran sells and rebuys.

To claim, file with your county appraisal district. Required documentation: VA disability rating letter (dated within the prior year) and proof of ownership/occupancy. The exemption is retroactive up to one year if you didn't know to file earlier.

Texas homestead exemptions are usually granted without friction, but a small percentage get denied or later removed. The most common reasons:

• Property not occupied as primary residence on January 1. The most common denial. You must own AND occupy on the lien date. If you bought December 15 and weren't living there January 1, the exemption applies starting the following year, not the current one.
• Driver's license address doesn't match. Texas requires the homestead address on your DL to match. Update your DL before applying — it's the #1 cause of application kickback.
• Claiming homestead on a second home. One homestead per family unit. If your spouse claims homestead on a separate property in another state, you may both lose the exemption.
• Property held in an entity name (LLC, trust). Most LLCs disqualify. Revocable living trusts usually qualify if structured correctly; irrevocable trusts often don't. Confirm with your CAD before transferring title.
• Rental of part of the property. Renting a room or accessory unit usually doesn't disqualify (homestead is preserved on the owner-occupied portion), but commercial use of substantial square footage can.
• Failure to update after death or divorce. When ownership changes within the homestead, file an updated application. CAD records can lag, and stripped homesteads in title-transfer situations are common.
• Refinancing or title work that inadvertently removes homestead status. Rare but happens with non-uniform title companies. Verify on your next May notice.

If your homestead is denied, you have the right to protest the denial through the same Appraisal Review Board process. Most denials are administrative — once you fix the issue (updated DL, correct entity title, etc.), the homestead is granted with minimal pushback.

The $100,000 state school exemption is statutory — every Texas ISD must offer it. Beyond that, cities, counties, hospital districts, and community college districts can offer their own optional exemptions. The variation is significant:

• Dallas County: 20% homestead (min $5,000); City of Dallas $90,000 flat; Parkland 20%; Dallas College 1%
• Harris County: 20% homestead (min $5,000); City of Houston 20% (min $5,000); HISD only state exemption; HCC $5,000
• Travis County: 20% homestead; City of Austin 20%; Central Health 20%; ACC 1%
• Bexar County: 20% homestead; City of San Antonio 20% (just adopted); University Health $5,000; Alamo Colleges 1%
• Tarrant County: 20% homestead; City of Fort Worth 20% (capped at $5,000); JPS 20%; TCC $5,000
• Collin County (Plano, Frisco): 5% homestead; City of Plano 20% (capped at $5,000); Frisco 12.5%
• Williamson County (Round Rock): 10% homestead; City of Round Rock 1%

The stack is real. A Dallas homeowner who files all available exemptions saves $2,000-$2,800 per year on a $400,000 homestead. An Austin homeowner saves $1,800-$2,500. Most homeowners only file the state portion — leaving $1,000-$1,500 on the table annually.

Each city and county sets its own filing rules. In most cases, a single application with your county appraisal district triggers exemption claims with all overlapping taxing units. In a few counties (Travis, Bexar), additional forms for city or hospital district exemptions are required separately. Check your CAD's exemption application page.