Texas homeowners started 2026 with a larger shield against rising property taxes. As of January 1, the state's homestead exemption increased from $100,000 to $140,000 for school district taxes, and the additional exemption for homeowners who are seniors or disabled rose from $10,000 to $60,000 — bringing their total exemption to $200,000.
What the Exemption Actually Reduces
Texas has no state income tax, which makes property taxes a bigger piece of the funding picture than in most states — and it also means homestead exemptions carry more weight for the average homeowner's budget. The exemption reduces the assessed value your school district taxes are calculated against. A home assessed at $350,000 was previously taxed (for school purposes) on $250,000 after the old $100,000 exemption; under the new rules, that same home is taxed on just $210,000.
For homeowners 65 and older, or homeowners with a qualifying disability, the math is more favorable still: a $350,000 home is now taxed on $150,000 for school purposes after the full $200,000 exemption — down from $340,000 taxed on $250,000 last year, before this year's change.
Why Only School Taxes
Texas's homestead exemption specifically applies to the school district portion of your property tax bill, which is typically the largest single line item. County, city, and special district taxes are calculated separately and may have their own, smaller local homestead exemptions on top of the state-mandated school exemption — check with your county appraisal district for what additional exemptions apply locally.
Do You Need to Apply?
If you already have a homestead exemption on file with your county appraisal district, the increased exemption amount should apply automatically — you don't need to refile. If you've never filed a homestead exemption, or you're not sure whether one is currently on file for your home, contact your county appraisal district directly. Filing is free, and in most Texas counties it can be done online.
The senior (65+) and disability exemptions are separate filings from the base homestead exemption and do require their own application if you haven't previously claimed them — this is worth checking specifically if you or someone in your household recently turned 65 or became eligible due to disability.
The Bottom Line
This is a real, recurring reduction in your school property tax bill, not a one-time credit — it applies every year going forward unless the legislature changes it again. If your appraisal district hasn't reflected the new $140,000 (or $200,000) exemption on your most recent bill, that's worth a direct call to confirm your exemption status is current.
Sources: Texas Property Tax Relief Changes for 2026: Official Overview, Texas Property Tax Exemption Deadlines & 2026 Guide