Texas Property Tax Exemptions: The Complete 2026 Guide for Homeowners

Texas has no state income tax, which means local governments fund schools, roads, and services almost entirely through property taxes. The combined rate in Travis County sits around 2.19% — one of the highest effective rates in the country. On a $500,000 home, that is roughly $10,950 per year.

The good news: Texas also offers some of the most generous property tax exemptions of any state. If you own and occupy your home, you almost certainly qualify for at least one. Many homeowners qualify for several. And yet, thousands of Travis County homeowners either have not applied or do not know they are leaving money on the table.

This guide covers every major property tax exemption available to Texas homeowners in 2026, with real dollar amounts, eligibility rules, application steps, and worked examples using Travis County tax rates. Whether you just bought your first home or you have lived in Austin for decades, this is the single resource you need.

1. General Homestead Exemption

The general homestead exemption is the single most valuable tax benefit for the typical Texas homeowner. It is available to every homeowner who lives in the home as their primary residence, with no income or age requirements. If you own your home and live in it, you qualify.

Who qualifies

• You own the property (your name is on the deed)
• It is your primary residence — the place where you live and sleep most nights
• You owned and occupied it as of January 1 of the tax year
• You do not claim a homestead exemption on another property anywhere in Texas

There is no income cap, no age requirement, no minimum time of ownership. If you closed on your home on December 30 and moved in the same day, you qualify for the following tax year. Renters, landlords on investment properties, and owners of vacation homes do not qualify.

The $100,000 school district exemption

In 2023, Texas voters approved Proposition 4, which increased the mandatory school district homestead exemption from $40,000 to $100,000. This means $100,000 is subtracted from your home's appraised value before school district taxes are calculated.

Let's walk through a concrete example with a $500,000 home in Austin:

That $980 per year savings is the same whether your home is worth $300,000 or $3,000,000 — every homeowner gets the same flat $100,000 reduction from school district taxes.

The 10% annual cap on assessed value increases

This is arguably the most powerful benefit of the homestead exemption, and it is the one most homeowners underestimate. Once you have a homestead exemption, TCAD cannot increase your assessed value by more than 10% per year, regardless of how much your market value increases.

This distinction matters. TCAD can still appraise your home at whatever they think the market value is. But the value they actually use to calculate your taxes — the assessed value — is capped.

Let's see this in action:

In this example the homeowner's market value jumped 30% over two years, but the cap limited their assessed value increase to about 21%. In a fast-appreciating market like Austin, this gap compounds dramatically over time. Homeowners who have had their homestead exemption for ten or more years often have assessed values $100,000 to $200,000 below their market value — saving them thousands every year.

Travis County optional exemptions

In addition to the mandatory $100,000 school district exemption, Travis County offers an optional homestead exemption of 20% of your appraised value (with a $5,000 minimum) for county taxes. The City of Austin offers its own optional exemption as well. These reduce your taxable value for those specific entities, providing additional savings on top of the school district exemption.

How to apply

1. Online:File Form 50-114 through TCAD's website. You will need your property ID (found on your TCAD notice or on their website) and a copy of your Texas driver's license or ID showing the property address.
2. By mail: Download and complete Texas Comptroller Form 50-114, then mail it to TCAD at P.O. Box 149012, Austin, TX 78714.
3. In person:Visit TCAD's office at 850 E. Anderson Lane, Austin, TX 78752.

The filing deadline is April 30 for the current tax year. However, you can file up to two years late and receive the exemption retroactively — so if you bought your home in 2024 and never filed, you can still get the exemption for 2025 and 2026.

Common mistakes to avoid

• Forgetting to file after buying a home. The homestead exemption does not transfer when a property is sold. If you bought your home in the last two years, check TCAD's website to confirm an exemption is on file. If not, file immediately.
• Assuming it happens automatically. Texas requires you to apply. Your title company, mortgage lender, and real estate agent are not required to file for you (though some title companies now include this as a closing service).
• Not understanding the cap. The 10% cap only applies if you have a homestead exemption. Without one, TCAD can increase your assessed value by any amount year over year. Every year you delay filing is a year your cap is not building.
• Address mismatch on your license. Your Texas driver's license must show the same address as the property. If you recently moved, update your license first.

2. Over-65 Exemption

The over-65 exemption is one of the strongest protections Texas offers senior homeowners. It provides two distinct benefits on top of the general homestead exemption: an additional dollar exemption and a permanent tax freeze.

The additional $10,000 school district exemption

On top of the $100,000 general homestead exemption, homeowners 65 and older receive an additional $10,000 off their school district taxable value. That brings the total school district exemption to $110,000. At Austin ISD's ~0.98% rate, this extra $10,000 saves about $98 per year. Many other taxing entities (Travis County, the City of Austin, Austin Community College) also offer optional over-65 exemptions of $10,000 or more.

The school district tax freeze (this is the big one)

When you turn 65 and have a homestead exemption, the Texas Tax Code establishes a tax ceiling on your school district taxes. Your school district tax bill is permanently frozen at the amount you pay in the year you turn 65. It can never go up — even if your property value doubles, even if the school district raises its tax rate.

Let's be very clear about how this works, because most people misunderstand it:

• The freeze is on the dollar amount of tax, not the assessed value. Your property can still be appraised higher each year. But the school district cannot collect more tax from you than the ceiling amount.
• The ceiling can go down if you successfully protest your assessed value or if the school district lowers its tax rate. It just cannot go up.
• The freeze applies only to school district taxes. Your City of Austin, Travis County, and other entity taxes are not frozen (though some offer their own optional freezes).
• If you move to a new home, the ceiling is transferred proportionally — the new school district must calculate a proportional ceiling based on the percentage of taxes frozen at your old home.

Worked example: 75-year-old in 78704

Let's look at a realistic scenario for a senior homeowner in South Austin's 78704 zip code (Bouldin Creek / Travis Heights):

This homeowner is paying $2,450 in school district taxes instead of $3,626 — a savings of $1,176 per year from the tax freeze alone. And that gap widens every year as property values continue to rise. After 10 years of normal appreciation, the freeze could easily be saving $3,000 or more annually.

Combined with the 10% homestead cap (which already reduced the assessed value from $600,000 to $480,000), the county exemptions, and the flat $110,000 school district exemption, this homeowner's total annual savings from exemptions is well over $3,000.

Surviving spouse rules

If a homeowner with an over-65 exemption passes away, the surviving spouse can retain the exemption and the tax ceiling — provided the surviving spouse is at least 55 years old, was living in the home at the time of death, and the home remains their homestead. The surviving spouse takes over the existing tax ceiling without interruption.

How to apply

File Form 50-114with TCAD (the same form used for the general homestead exemption). Check the box for the over-65 exemption in addition to the general homestead exemption. You will need proof of age — typically a copy of your Texas driver's license or ID. The exemption takes effect for the entire tax year in which you turn 65. You can apply up to two years late and receive retroactive benefits.

3. Disabled Person Exemption

The disabled person exemption provides the same benefits as the over-65 exemption: an additional $10,000 off school district taxable value and a permanent tax ceiling (freeze) on school district taxes. The key difference is the eligibility criteria.

Who qualifies

• You receive Social Security disability benefits (SSDI or SSI due to disability)
• You have a disability determination letter from Social Security
• You have a homestead exemption on the property

The standard for disability is the Social Security Administration's definition: you are unable to engage in substantial gainful activity due to a medically determinable physical or mental impairment.

Important: cannot combine with over-65

You cannot receive both the over-65 exemption and the disabled person exemption from the same taxing entity. If you are 65 or older and disabled, you should claim whichever produces the lower tax ceiling. In most cases, the over-65 exemption is more beneficial because the tax ceiling is typically set at a lower amount (it was established when you turned 65, before further appreciation). However, if you became disabled before turning 65, your disability tax ceiling may be more favorable — check both.

How to apply

File Form 50-114with TCAD and check the box for the disabled person exemption. Attach your Social Security disability determination letter or a physician's statement of disability. The same late-filing rules apply — you can apply up to two years retroactively.

4. Disabled Veteran Exemptions

Texas provides some of the most generous property tax benefits in the nation for disabled veterans. The benefits scale with the veteran's VA disability rating, and at the 100% level, the result is extraordinary: complete exemption from all property taxes.

Partial exemptions (10% to 100% VA rating)

Veterans with a VA disability rating receive a partial exemption from their property's taxable value. The amounts are set by state law:

Annual savings calculated at the 2.19% combined Travis County rate. The partial exemptions apply to all taxing entities, not just school district.

100% disabled veteran: complete exemption

This is the most valuable property tax exemption in Texas. If a veteran has a 100% disability rating from the VA or is rated as individually unemployable (IU/TDIU), they are completely exempt from all property taxes on their homestead. All taxing entities. No tax bill at all.

On a $500,000 home in Travis County with a 2.19% combined rate, that is a savings of $10,950 per year. Over a decade, that is more than $100,000. This exemption alone can make the difference between being able to afford to stay in a home and being forced to sell.

Surviving spouse rules

If a 100% disabled veteran passes away, the surviving spouse retains the complete exemption — provided the surviving spouse has not remarried, the home was the veteran's homestead at the time of death, and the surviving spouse still lives there. The spouse can even transfer the exemption to a new homestead of equal or lesser value.

For partial exemptions (10-100% rating), the surviving spouse of a veteran who died in the line of duty may qualify for a $5,000 exemption.

How to apply

File Form 50-114 with TCAD for the general homestead, plus Form 50-135(Application for Disabled Veteran's or Survivor's Exemption). You will need your VA disability rating letter. Surviving spouses need the veteran's death certificate and VA documentation.

5. Solar and Wind Energy Device Exemption

If you have installed solar panels, a wind turbine, or other renewable energy devices on your property, Texas law provides a 100% exemption on the added value those devices contribute to your property.

This is an exemption that many Austin homeowners do not know about. Austin has been one of the fastest-growing markets for residential solar in Texas, and a typical rooftop solar installation adds $15,000 to $25,000 to a home's market value. Without this exemption, TCAD could increase your appraised value by that amount, adding $330 to $550 per year to your tax bill.

How it works

• TCAD assesses the value your solar panels or wind turbine add to your property
• That entire added value is exempted — removed from your taxable value
• You pay property taxes as if the solar panels were not there
• Applies to all taxing entities, not just school district

Who qualifies

Any property owner — residential or commercial — with solar panels, wind turbines, or other renewable energy devices installed on the property. You do not need a homestead exemption for this one. Even investment properties and commercial buildings qualify.

How to apply

File Form 50-123 (Exemption Application for Solar or Wind-Powered Energy Devices) with TCAD. Include information about the type, size, and installation date of your system. You should apply the tax year after installation. If you installed panels in 2025 and did not file, apply now for 2026.

6. Agricultural (1-d-1) Valuation

Strictly speaking, this is not an "exemption" — it is a special valuation method. But the practical effect is the same: a massive reduction in your property tax bill, sometimes by 90% or more on the land portion.

How it works

Under Section 23.51 of the Texas Tax Code, land that is used primarily for agricultural purposes can be appraised based on its productive agricultural value rather than its market value. In Travis County, where an acre of undeveloped land might have a market value of $200,000 or more, its agricultural value might be only $500 to $2,000 per acre.

The savings can be enormous. A 10-acre property on the edge of Austin with a market value of $2,000,000 might have an agricultural value of just $15,000 — reducing the property tax bill on the land from approximately $43,800 to about $329 per year.

What qualifies

• The land must be used for agriculture, timber, or wildlife management
• Common qualifying uses: cattle grazing, hay production, beekeeping, wildlife management, orchards, farming
• There is typically a minimum acreage requirement (varies by county and use — in Travis County, often 5 to 10 acres for grazing)
• The land must have been in agricultural use for at least five of the last seven years
• The use must be for a "degree of intensity generally accepted in the area"

The rollback risk

If you take land out of agricultural use (by developing it, for example), you owe rollback taxes — the difference between the taxes you paid under agricultural valuation and what you would have paid at full market value, for the previous five years, plus 7% annual interest. This can be a very large sum. The rollback is triggered when the land is no longer used for agriculture, not when it is sold.

How to apply

File Form 50-129 (Application for 1-d-1 Agricultural Use Appraisal) with TCAD by April 30. You will need to describe the agricultural use, acreage, and provide supporting documentation such as receipts for livestock purchases, fencing costs, or wildlife management plans.

All Texas Property Tax Exemptions at a Glance

Here is every major exemption side by side, with eligibility, value, and the form you need to file:

7. Exemptions + Protests = Maximum Savings

Here is the most important thing to understand about Texas property taxes: exemptions and protests are completely separate actions, and you should do both.

How they work together

• Exemptions reduce your taxable value— the portion of your home's value that taxes are calculated on. They are fixed amounts based on who you are and how you use the property.
• Protests reduce your market value— TCAD's assessment of what your home is worth. A successful protest lowers the starting number before exemptions are applied.
• When you combine them, you lower the assessed value (through protest), then further reduce the taxable value (through exemptions). The result is the smallest possible tax bill.

Combined savings example

Here is a real-world scenario showing how exemptions and a successful protest work together for a typical Austin homeowner:

The homeowner who does both saves more than double what the homeowner who only has an exemption saves. And here is the compounding effect: that $50,000 protest reduction becomes the new baseline for the 10% homestead cap. In future years, it takes longer for the assessed value to climb back up, so the savings carry forward.

Different deadlines, different processes

• Exemptions: File once (Form 50-114) by April 30. Stays active until you sell or move. No annual renewal.
• Protests: File every year by May 15 (or 30 days after receiving your TCAD notice). Requires evidence and a hearing.

This is why so many homeowners stop at exemptions — they are one-and-done. Protesting takes annual effort, evidence gathering, and often a hearing. That is exactly the part we handle.

Key Dates for 2026

Frequently Asked Questions

Do I need to reapply for my homestead exemption every year?

No. Once approved, the homestead exemption stays active until you sell the property, move out, or notify TCAD of a change. You only need to file once.

I bought my home two years ago and never filed. Is it too late?

No. Texas law allows you to file a homestead exemption application up to two years late. File now and request retroactive application for the years you missed.

Can I have a homestead exemption on two properties?

No. Texas law allows only one homestead exemption per person (or married couple). It must be your primary residence. If you own a second home, that property does not qualify.

Does the homestead exemption apply to condos and townhomes?

Yes. Any property that is your primary residence qualifies — single-family homes, condos, townhomes, and manufactured homes on owned land. The key requirement is that you own it and live in it.

If I protest and win, does my homestead cap reset?

No — this is one of the best things about protesting. A successful protest lowers your assessed value, and the 10% cap applies to the new, lower baseline going forward. Your cap does not reset. It compounds your savings.

I am over 65 — should I still protest?

Potentially, yes. Even though your school district taxes are frozen, your City of Austin, Travis County, and other entity taxes are not frozen. A protest reduces the assessed value used by all taxing entities, so it can still lower your total bill. Additionally, if your protest results in a lower assessed value, your school district tax ceiling may actually decrease — the ceiling can go down, it just cannot go up.

What if I qualify for both over-65 and disabled veteran exemptions?

You can receive both, as long as they are different types of exemptions. However, you cannot combine the over-65 and disabled person exemptions from the same taxing entity. The disabled veteran exemption is a separate category and stacks with either over-65 or disabled person exemptions.

The Bottom Line

Texas property tax exemptions are powerful, free, and underutilized. If you own a home in Travis County — or anywhere in Texas — you should have, at minimum, a general homestead exemption on file. If you are over 65, disabled, a veteran, or have solar panels, there are additional exemptions waiting for you.

But exemptions are only half the equation. Even with every exemption in place, TCAD may still be over-assessing your home's market value. Filing a protest is the other lever you can pull to reduce your tax bill — and the two actions together produce the maximum savings.

Check your exemption status on our free exemptions tool, and then see how much more you could save by protesting.