What did the 2026 Texas homestead exemption change actually save me?
Texas voters approved a bigger homestead exemption that took the school-district portion to $140,000, with seniors and disabled homeowners reaching $200,000 combined. If you have a homestead exemption on file, the savings are automatic — and they reset your escrow math.
What changed in 2026
Texas increased the school-district homestead exemption to $140,000 of a home's taxable value, up from $100,000. A companion measure took homeowners who are 65 or older or disabled to a combined $200,000 school-district exemption. School taxes are the biggest line on most Texas property tax bills, so raising this exemption is where the real dollars move.
The exemption reduces the value your school taxes are calculated on. If your home is assessed at $300,000 and the school-district exemption is $140,000, your school taxes apply to $160,000 instead.
What it actually saves
The dollar savings depend on your school district's tax rate, but the mechanics are simple: an extra $40,000 of exemption removed from the taxable base, multiplied by your school rate. On a typical home that lands in the few-hundred-dollars-per-year range, and more for seniors and disabled owners reaching the $200,000 level.
| Item | Before | 2026 |
|---|---|---|
| Assessed value | $300,000 | $300,000 |
| School-district exemption | $100,000 | $140,000 |
| School-taxable value | $200,000 | $160,000 |
| Effect | — | $40,000 less taxed for schools |
The exact figure on your bill comes from your county appraisal district and your local rates. We can pull your district's numbers when we model your payment.
Do I have to apply for it?
If you already have a homestead exemption on file for your primary residence, the higher amount applies automatically — you don't re-apply. If you just bought, or never filed, you do need to file the homestead exemption with your county appraisal district to get any of it. We walk new buyers through that in how to file your Texas homestead exemption.
How it affects your monthly payment
Property tax is collected through your escrow account, so a lower tax bill can lower the escrow portion of your monthly payment at the next analysis. For 2026 buyers, this also changes the affordability math — see how much house you can afford in Texas when property tax, not the rate, is the swing factor.
Common questions
How much is the Texas homestead exemption in 2026?
The school-district homestead exemption is $140,000 of taxable value. Homeowners who are 65 or older or disabled reach a combined $200,000 school-district exemption. Other taxing units (county, city) may offer their own separate exemptions.
Do I need to reapply to get the higher exemption?
No. If you already have a homestead exemption on file for your primary residence, the increased amount applies automatically. You only need to file if you recently bought or never applied.
Will the bigger exemption lower my mortgage payment?
It can. Property taxes are paid through your escrow account, so a lower tax bill can reduce the escrow portion of your monthly payment at your lender's next escrow analysis.
Does the exemption apply to investment or second homes?
No. The homestead exemption applies only to your primary residence. Second homes and rental properties don't qualify for the homestead exemption.
Did the Texas homestead exemption increase pass in November 2025?
Yes — Proposition 13 passed on November 4, 2025 (all 17 constitutional amendments passed that night), raising the school-district exemption from $100,000 to $140,000 via SB 4/SJR 2, applied retroactively to tax year 2025. Proposition 11 took the senior/disabled add-on to $60,000, for a combined $200,000 school exemption at 65+.
Do I have to apply for the homestead exemption every year in Texas?
No — you file once, free, with your county appraisal district, and it stays in place until you move. You did NOT need to refile for the new $140,000 amount; it applied automatically to exemptions already on file. Ignore mailers offering to file it for a fee.
Can I get the homestead exemption the same year I buy my house?
Yes — since the 2022 law change, you can qualify immediately upon closing, prorated from your acquisition date, as long as the prior owner didn't already claim the same exemption that year (if they did, their exemption carries the property through December 31 and you file for January 1). The regular window is January 1 to April 30, with late filing allowed up to two years back with a refund.
How Mike + Cornerstone help
The bigger exemption is good news, but it only helps if your homestead is actually on file and your escrow reflects the right tax number. We make sure your payment is modeled on the correct exemption from day one, so you're not over- or under-escrowed.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.
This article is general information for Texas homebuyers and homeowners, not financial or legal advice, and is not a commitment to lend. Program figures are current as of June 28, 2026 and can change; we confirm the numbers for your specific situation. Equal Housing Lender.