What Is a Homestead Exemption in Texas?
So what is homestead exemption Texas homeowners keep hearing about? If you use your home as your primary residence, it qualifies as your homestead. A homestead exemption removes part of your home's value from taxation, which lowers your property tax bill. The bigger the exemption, the less you pay — it's one of the simplest ways to save money as a Texas homeowner. And thanks to two new constitutional amendments, the Austin homestead exemption 2026 numbers are the biggest in state history.
What Changed in 2026: Prop 13 and Prop 11
Texas voters approved two major constitutional amendments in November 2025 that significantly increased homestead exemptions starting in 2026 (retroactive to 2025):
Proposition 13 raised the school district homestead exemption from $100,000 to $140,000. This applies to all homeowners with a homestead exemption — you don't need to do anything extra.
Proposition 11 raised the additional exemption for homeowners 65 and older or disabled from $10,000 to $60,000. Combined with Prop 13, that's a total school district exemption of $200,000 for seniors and disabled homeowners.
Both amendments passed with overwhelming support (nearly 80% of voters). These are the largest homestead exemption increases in Texas history.
How Much Will You Save?
The savings depend on your home's value and your local school district tax rate. Here's a quick example using a $500,000 home in Austin ISD:
Before (2024):
$500,000 − $100,000 exemption = $400,000 taxable value
After (2026):
$500,000 − $140,000 exemption = $360,000 taxable value
At a school district rate of roughly $1.00 per $100, that's about $400 per year in additional savings just from the Prop 13 increase. Seniors and disabled homeowners save even more with the boosted Prop 11 exemption.
On top of this, Travis County offers its own 20% homestead exemption on county taxes, plus an additional $143,220 exemption for those 65 and older or disabled.
The 10% Homestead Cap
Once you have a homestead exemption in place, your taxable value can only increase by 10% per year, no matter how much the market moves. This is huge in a city like Austin where appraisals can swing dramatically. The cap doesn't stop the appraisal district from raising your market value — it just limits how much of that increase hits your tax bill each year.
This is one of the biggest reasons to file your exemption as early as possible — the sooner the cap kicks in, the more it protects you over time.
Senior and Disabled Homeowner Benefits
If you're 65 or older (or disabled), you get two extra advantages beyond the higher exemption:
Tax Ceiling (Freeze): Once you qualify, your school district taxes are frozen at the amount you paid the year your exemption was approved. Even if appraisals or tax rates go up, your school taxes won't. Think of it as a permanent cap on your school tax bill.
Combined Exemption: With Props 11 and 13, your total school district exemption is now $200,000 — removing a significant chunk of your home's value from school taxes entirely.
Note: You can claim either the senior or disabled exemption, but not both.
How to File Your Austin Homestead Exemption in 2026
Filing is free and straightforward. You can apply online through your county's appraisal district:
• Travis County (Austin) — Exemption Helpline: (512) 873-1560
What you'll need:
• A copy of your Texas driver's license or ID showing your property address (you can update your address online here)
• You must have occupied the home as your primary residence on January 1st of the tax year
• Once approved, the $140,000 school district exemption applies automatically each year — you don't need to refile
Don't Forget to Verify
Even though the new $140,000 exemption should apply automatically, mistakes happen. Before you pay your property tax bill, check your tax statement to confirm the full exemption is reflected. You can look up your property on the Travis County tax office website to verify your taxable value, exemptions, and tax rate.
If something looks off — or if you want to understand how your property taxes and appraisals work — don't hesitate to reach out. I help my clients navigate this stuff all the time.
Bottom Line
Now you know what is homestead exemption Texas law provides — and the Austin homestead exemption 2026 changes make it more valuable than ever. Whether you're a first-time buyer filing your exemption for the first time or a longtime homeowner benefiting from the increased amounts, make sure your exemption is on file and your tax statement reflects the new numbers. It's free money — don't leave it on the table.
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