Property taxes are one of the largest ongoing expenses Texas homeowners face. The good news is that Texas offers several property tax exemptions that may reduce the taxable value of your home and help lower your annual tax bill.

Three of the most important exemptions homeowners should understand are the Texas Residence Homestead Exemption, the Disabled Veteran Property Tax Exemption, and the Over-65 Property Tax Exemption.

What Is the Texas Homestead Exemption?

The Texas Homestead Exemption is available to homeowners who own and occupy their home as their primary residence. This exemption reduces the taxable value of your home, which can lower the amount of property taxes you owe.

Key Benefits of the Homestead Exemption

• Reduces the taxable value of your primary residence.
• May lower school district, county, city, and other local property taxes.
• Helps protect homeowners from large taxable value increases.
• Creates a 10% annual appraisal cap once the exemption is in place.

The 10% Homestead Appraisal Cap

One of the biggest benefits of the Texas Homestead Exemption is the appraisal cap. Once your homestead exemption is established, your taxable appraised value generally cannot increase by more than 10% per year, even if your market value rises more than that.

For example, if your home’s market value increases from $350,000 to $420,000, the homestead cap may help limit how much of that increase is used for tax purposes.

Who Qualifies for a Texas Homestead Exemption?

To qualify, you generally must:

• Own the property.
• Occupy the home as your primary residence.
• Not claim a homestead exemption on another property.
• File the exemption application with the county appraisal district.

Understanding the Texas Disabled Veteran Property Tax Exemption

Texas provides property tax benefits for veterans with a service-connected disability rating from the U.S. Department of Veterans Affairs. The amount of exemption depends on the veteran’s disability rating.

Partial Disabled Veteran Exemptions

Veterans with service-connected disability ratings below 100% may qualify for a partial property tax exemption. The exemption amount generally increases as the VA disability rating increases.

100% Disabled Veteran Residence Homestead Exemption

A veteran who receives 100% disability compensation due to a service-connected disability, or who qualifies based on individual unemployability, may be eligible for a total property tax exemption on their residence homestead.

This can be one of the most valuable benefits available to Texas disabled veterans and may eliminate property taxes on the qualifying primary residence.

Surviving Spouse Benefits

In certain situations, surviving spouses of qualifying disabled veterans may be able to continue receiving property tax benefits. Because these rules can be specific, surviving spouses should contact their local appraisal district for guidance.

Understanding the Texas Over-65 Property Tax Exemption

Texas homeowners who are age 65 or older may qualify for an additional property tax exemption on their primary residence.

Benefits of the Over-65 Exemption

• Provides an additional exemption beyond the standard homestead exemption.
• May reduce school district property taxes.
• May qualify the homeowner for local optional exemptions.
• Can create a school tax ceiling, often called a tax freeze.

What Is the Over-65 Tax Ceiling?

Once the Over-65 Exemption is granted, school district taxes are generally frozen at a ceiling amount. This means the school tax portion of your property tax bill generally cannot increase because of rising property values.

The tax ceiling can still change in certain situations, such as major home improvements or changes to the property, so it is important to confirm details with the appraisal district.

Can You Combine Property Tax Exemptions?

Yes. Many Texas homeowners may qualify for more than one exemption.

• Regular homeowner: Homestead Exemption
• Homeowner age 65 or older: Homestead Exemption + Over-65 Exemption
• Disabled veteran: Homestead Exemption + Disabled Veteran Exemption
• Disabled veteran age 65 or older: Homestead Exemption + Disabled Veteran Exemption + Over-65 Exemption

How to Apply for Texas Property Tax Exemptions

Applications are filed with the appraisal district in the county where the property is located. Many appraisal districts allow homeowners to apply online.

You may need:

• Texas driver’s license or state-issued ID.
• Property address matching your primary residence.
• VA disability documentation, if applying for a disabled veteran exemption.
• Proof of age, if applying for the Over-65 Exemption.

Common Mistakes Homeowners Make

1. Assuming the Exemption Is Automatic

Most exemptions require an application. Do not assume your exemption has been applied just because you bought and moved into the home.

2. Not Applying After Moving

If you purchase a new home, you generally need to apply for exemptions on the new property.

3. Veterans Missing Out on Benefits

Many veterans do not realize they may qualify for a partial or total property tax exemption based on their VA disability rating.

4. Not Checking Local Optional Exemptions

Some cities, counties, and other taxing entities may offer additional local exemptions. These can vary by location.

Why This Matters When Buying a Home

Property taxes directly affect your monthly payment, especially if your taxes are escrowed with your mortgage. Understanding available exemptions can help you estimate your long-term housing costs more accurately.

This is especially important for veterans, disabled veterans, retirees, and buyers moving to Texas from another state.

Frequently Asked Questions

Do I have to apply for the Texas Homestead Exemption every year?

In most cases, no. Once approved, your homestead exemption usually remains in place as long as you continue to qualify. However, you should update your appraisal district if you move or your eligibility changes.

Can I have a homestead exemption on more than one property?

No. A homestead exemption is generally only available for your primary residence.

Do disabled veterans pay property taxes in Texas?

Some disabled veterans receive partial exemptions. Veterans who qualify as 100% disabled may be eligible for a total property tax exemption on their residence homestead.

Can I get both the Over-65 Exemption and the Homestead Exemption?

Yes. Homeowners age 65 or older may qualify for both the standard homestead exemption and the Over-65 Exemption.

Where do I apply for these exemptions?

You apply through the county appraisal district where the property is located or Click one of these links for Homestead Exemption Form 50-114 or Disabled Veteran Exemption 50-135 Form