What Is the Texas Homestead Exemption? The Texas homestead exemption removes $40,000 from your home's taxable value for school district taxes. This exemption can save the average Texas homeowner $400-800 annually, depending on local tax rates.
You must apply once using Form 50-114, and the exemption continues automatically as long as you live in the home. Quick Facts: The homestead exemption reduces your taxable value by $40,000 for school taxes only.
Most homeowners save $400-800 per year. You only need to apply once. Who Qualifies for the Homestead Exemption? You qualify for the Texas homestead exemption if you meet these requirements: Primary residence: The home must be your main place of residence on January 1st Ownership: You must own the property (or be buying it under contract) Occupancy: You must actually live in the home, not rent it out One per person: You can only claim one homestead exemption statewide Both single-family homes and condominiums qualify.