Texas Homestead Exemption: School Tax, Over-65 Rules and Creditor Protection
The Texas homestead exemption takes $100,000 off your school district taxable value, adds $10,000 for age 65 or disability, and has a May 1 filing deadline.
Quick answer
The Texas homestead exemption removes $100,000 of a home's appraised value from school district taxation, with $10,000 more for owners who are 65 or older or disabled. Cities, counties and other units can add their own. You apply once with your county appraisal district, normally before May 1.
What is the Texas homestead exemption?
The Texas homestead exemption is a property tax break. It does not reduce what your home is worth. It removes part of the appraised value (the value the county assigns for tax purposes) from the amount a taxing unit can tax. A taxing unit is any body that levies property tax, such as a school district, city or county.
Texas uses the word "homestead" for a second, separate idea: protection of the home from most creditors. That protection comes from a different law and works differently. This guide covers both, and keeps them apart. For the general national picture, see our overview of the homestead exemption.
Definition
Texas residence homestead exemption — A reduction in the taxable value of the home you live in as your principal residence, set by Section 11.13 of the Texas Tax Code and claimed by application to the county appraisal district.
How much is the Texas homestead exemption?
The statewide amounts are set by statute. Section 11.13 of the Tax Code gives every adult homeowner a school district exemption of $100,000 of appraised value, with an extra $10,000 for owners who are 65 or older or disabled (Texas Tax Code 11.13, Texas.Public.Law). Other taxing units may add exemptions of their own.
This article uses the statute text as its data source. Texas does not publish a county deed or sales count through the open-data feeds we use, so the table below sets out the rules as written. Always confirm current amounts with your appraisal district, because the legislature changes these figures.
| Exemption | Who gets it | Amount under Tax Code 11.13 | Who sets it |
|---|---|---|---|
| School district, general | Any adult owner-occupant | $100,000 of appraised value | State law, mandatory |
| School district, age 65 or older or disabled | Owners 65 or older, or disabled | Additional $10,000 of appraised value | State law, mandatory |
| Local option, fixed amount | Owners 65 or older, or disabled | $3,000 unless the unit sets a larger amount | Each taxing unit, optional |
| Local option, percentage | Any owner-occupant | Percentage of appraised value, up to 20 percent, with a $5,000 minimum | Each taxing unit, optional |
| County purposes, Article VIII, Section 1-a | Family or single adult | $3,000 of assessed value | State law |
How do the over-65, disability and local percentage exemptions work?
The extra $10,000 school district exemption for age 65 or older or disability is automatic once you qualify. Section 11.13 defines "disabled" as under a disability for purposes of payment of disability insurance benefits under federal Old-Age, Survivors, and Disability Insurance.
Local exemptions are different because each taxing unit decides. A unit can adopt a fixed exemption for owners who are 65 or older or disabled, which is $3,000 unless the unit sets a larger amount. Separately, a unit can adopt a percentage exemption of up to 20 percent of appraised value, and if the percentage produces less than $5,000 the owner gets $5,000. A unit must adopt the percentage exemption before July 1.
This is why two neighbors in different cities, or two homes served by different school districts, can see different totals. It also explains the searches for a Harris County or Dallas County figure: the statewide pieces are the same in both, but the city, county and special district pieces vary by taxing unit. Check the exemption list on your own tax notice or with your appraisal district.
A person who is both disabled and 65 or older cannot receive both a disabled and an elderly exemption from the same taxing unit in the same year, but may choose either. A person also cannot receive the exemption for more than one residence homestead in the same year.
What counts as a residence homestead in Texas?
A residence homestead is a home you own and occupy as your principal residence. Section 11.13(j) defines it as a structure (including a mobile home) that is owned by one or more individuals, designed or adapted for human residence, used as a residence and occupied as the owner's principal residence, together with land used in the residential occupancy, not to exceed 20 acres.
A few rules in the same section matter in real life. If part of the home is rented out or used for an incompatible purpose, the home keeps its homestead character, but the exemption does not apply to the value of that portion. If you temporarily stop living in the home and do not establish a different principal residence, you keep the status when the absence is under two years and you intend to return, or when it results from military service or residency in a health, infirmity or aging care facility.
Ownership can also be through a beneficial interest in a qualifying trust. The trust has to give the trustor or a beneficiary the right to live in the home rent free, and the deed or court order that placed the property in the trust has to be recorded in the real property records of the county.
How do you apply for the Texas homestead exemption, and when?
Confirm you qualified on January 1
Under Tax Code 11.42, eligibility for a Chapter 11 exemption for any tax year is determined by your qualifications on January 1, and a person who does not qualify on that date may not receive the exemption that year. The over-65 and disability exemptions are an exception: they take effect as of January 1 of the year you qualify and apply to the entire year (Texas Tax Code 11.42).
File the application with the chief appraiser
Section 11.43 says to apply by filing an exemption application form with the chief appraiser of each appraisal district where the property is located. For an exemption decided by January 1 qualifications, the form must be filed before May 1 (Texas Tax Code 11.43). The Harris Central Appraisal District says on its home page that you can file your residential homestead exemption online (Harris Central Appraisal District).
Know the late-filing window
The chief appraiser may extend the deadline for good cause by written order for one period of up to 60 days. Section 11.431 separately lets the chief appraiser accept a late residence homestead application filed no later than two years after the delinquency date for the taxes on the homestead (Texas Tax Code 11.431). If it is approved, taxes already paid on the exempted amount are refunded to the person who owned the property when the tax was paid.
Do not refile every year, but expect a request
Once a residence homestead exemption is allowed, you need not claim it again, and it applies until the property changes ownership or your qualification changes. The chief appraiser may still send a notice requiring a new application to confirm your current qualification.
The January 1 rule catches new buyers
What is the 10 percent homestead appraisal cap?
Texas also limits how fast a homestead's appraised value can rise for tax purposes. Tax Code 23.23 allows the appraisal office to increase the appraised value of a residence homestead to no more than the lesser of the market value, or the prior year's appraised value plus 10 percent plus the market value of new improvements (Texas Tax Code 23.23).
The cap does not start in the first year you qualify. It takes effect on January 1 of the tax year after the first year the owner qualifies the property for the Section 11.13 exemption, and it expires on January 1 of the first tax year that neither that owner nor the owner's spouse or surviving spouse qualifies for the exemption.
The cap limits the appraised value. It does not freeze your tax bill, because the tax rate is set separately by each taxing unit. New improvements, but not repairs or ordinary maintenance, are added on top of the capped value.
Does the Texas homestead protect your home from creditors?
Yes, with listed exceptions. Texas Property Code 41.001 says a homestead is exempt from seizure for the claims of creditors except for encumbrances properly fixed on homestead property (Texas Property Code 41.001). An encumbrance is a claim against the property, such as a mortgage or lien.
The statute lists the encumbrances that can be properly fixed: purchase money, property taxes, written-contract work and materials for improvements, owelty of partition (a lien used to even out a division between co-owners, including between spouses in a divorce), refinance of an existing lien, an extension of credit that meets Article XVI, Section 50(a)(6) of the Texas Constitution (the home equity loan rules), and a reverse mortgage that meets Section 50(k) to (p).
The proceeds of a sale of a homestead are not subject to seizure for a creditor's claim for six months after the date of sale.
This protection is about creditors, and the size limit is about land: Property Code 41.002 caps an urban homestead at not more than 10 acres, and a rural homestead at not more than 200 acres for a family or 100 acres for a single adult (Texas Property Code 41.002). Which liens can attach to a Texas home, and which cannot, is why judgment liens are treated differently on homestead land.
Tax exemption vs creditor protection: what is the difference?
People often assume that filing the tax exemption creates the creditor protection. The two come from different laws. The table sets them side by side.
| Tax exemption | Creditor protection | |
|---|---|---|
| Law | Tax Code 11.13 | Property Code 41.001 and 41.002 |
| What it does | Lowers taxable value | Shields the home from most creditor claims |
| Requires an application | Yes, with the appraisal district | The statute does not describe a tax-style application |
| Size limit | 20 acres of land under 11.13(j) | 10 urban acres, 200 or 100 rural acres under 41.002 |
| Exceptions | Applies to one homestead per year | Purchase money, taxes, home equity, others in 41.001(b) |
How does a homestead show up in Harris County property records?
Two different offices hold two different records. The appraisal district holds the exemption: it appears on the tax and appraisal record for the account. The county clerk holds the recorded documents: deeds, deeds of trust (the Texas mortgage instrument, explained in deed of trust vs mortgage) and liens.
A homestead exemption on the tax roll is not recorded against the deed, and it does not clear liens. A title search reads the recorded documents, so it will show a deed of trust or a recorded lien, and the homestead question affects whether a given lien can be enforced against the home. For Harris County, our Harris County title search pulls recorded documents by owner, and the guide to checking for liens explains what to look for.
HeritageDeed offers a Current Owner Search for $49, a Two Owner Search for $79 and a 30-Year Search for $129 in the counties listed on its title search pages. A records search is not title insurance and is not legal advice; see title search vs title insurance.
The Harris Central Appraisal District also announces on its home page that owners can register their home with the Harris County Clerk's Office to help protect against deed fraud.
Key takeaways
Key takeaways
- The statewide school district exemption is $100,000 of appraised value, plus $10,000 for owners who are 65 or older or disabled (Tax Code 11.13).
- Cities, counties and other units may add local exemptions, including a percentage of up to 20 percent with a $5,000 minimum, so totals differ by address.
- File with the county appraisal district before May 1; a late application can be accepted up to two years after the tax delinquency date.
- Eligibility is measured on January 1, except the over-65 and disability exemptions, which apply to the whole year you qualify.
- The appraised value of a homestead is capped at 10 percent growth a year plus new improvements, starting the year after you first qualify.
- Creditor protection (Property Code 41.001) is a separate rule with exceptions for purchase money, taxes, home equity loans and others.
Frequently asked questions
- How much is the Texas homestead exemption?
- The school district exemption is $100,000 of appraised value for any adult owner who lives in the home as a principal residence. Owners who are 65 or older or disabled get an extra $10,000 for school taxes. Cities, counties and other taxing units may add exemptions of their own, so the total depends on your address.
- What is the deadline to file a Texas homestead exemption?
- For an exemption based on your January 1 qualifications, the application must be filed before May 1 of the tax year. A chief appraiser can extend that by written order for up to 60 days for good cause. A late homestead application can be accepted up to two years after the tax delinquency date.
- Do I have to reapply for the homestead exemption every year in Texas?
- Generally no. Once a residence homestead exemption is allowed, it continues until the property changes ownership or your qualification changes. The chief appraiser can still mail a notice asking you to file a new application to confirm that you qualify, so answer any such notice.
- What is the Harris County Texas homestead exemption?
- Harris County owners get the statewide school district exemption of $100,000, plus the extra $10,000 if 65 or older or disabled. Local units such as the county or city may add more. You file with the Harris Central Appraisal District, which says residential homestead exemptions can be filed online.
- Does the Texas homestead exemption freeze my property taxes?
- No. It reduces taxable value, and a separate cap limits how much the appraised value of a homestead can rise each year to 10 percent plus new improvements. Tax rates are set by each taxing unit, so your bill can still rise when rates or the market value of improvements go up.
- Can I get a homestead exemption on a home I rent out or do not live in?
- No. The home must be your principal residence. If part of the structure is rented, the home can keep its homestead status, but the exemption does not apply to the rented portion. You cannot receive the exemption for more than one residence homestead in the same year.
- Does the Texas homestead stop creditors from taking my house?
- It protects the home from most creditor claims, but not all. Property Code 41.001 allows encumbrances for purchase money, property taxes, written-contract improvements, owelty of partition, refinances, qualifying home equity loans and qualifying reverse mortgages. Sale proceeds are protected for six months after the sale.
- What if I bought my house after January 1?
- Eligibility for most exemptions is set by your qualifications on January 1, so a mid-year purchase can mean waiting for the next tax year for the standard exemption. Section 11.42 has separate rules for some situations, so ask your appraisal district what applies to your closing date.
Sources
Primary records and official documentation cited in this article.
- 1Texas.Public.Law, Texas Tax Code Section 11.13, Residence Homestead
- 2Texas.Public.Law, Texas Tax Code Section 11.42, Exemption Qualification Date
- 3Texas.Public.Law, Texas Tax Code Section 11.43, Application for Exemption
- 4Texas.Public.Law, Texas Tax Code Section 11.431, Late Application for Homestead Exemption
- 5Texas.Public.Law, Texas Tax Code Section 23.23, Limitation on Appraised Value of Residence Homestead
- 6Texas.Public.Law, Texas Property Code Section 41.001, Interests in Land Exempt from Seizure
- 7Texas.Public.Law, Texas Property Code Section 41.002, Definition of Homestead
- 8Harris Central Appraisal District, Home
HeritageDeed provides public-record search reports only. Reports do not constitute title insurance, an attorney opinion of title, or a title insurance commitment.