Homestead exemption in Texas: Free money you are leaving on the table

If you own a home in Texas and haven't filed for homestead exemption, you are literally overpaying property taxes.

What it does:

• Exempts $100,000 of your home's assessed value from SCHOOL DISTRICT taxes (updated by Prop 4, 2023)
• Additional exemptions from city, county, and special districts (varies, typically $5K-$25K)
• Caps annual assessed value increases at 10% for school taxes (even if market value jumps 30%)
• 65+ or disabled: Additional $10,000 school tax exemption + permanent tax freeze

The math (example):

• Home assessed at $400,000
• School district tax rate: 1.2%
• Without homestead: $400K x 1.2% = $4,800 school taxes
• With homestead: ($400K - $100K) x 1.2% = $3,600 school taxes
• Annual savings: $1,200+ just on school taxes

How to file:

1. Go to your county appraisal district website:
   • Dallas: dallascad.org
   • Tarrant: tad.org
   • Collin: collincad.org
   • Denton: dentoncad.com
2. Download the homestead exemption application
3. Provide proof of ownership and residency (driver's license matching the property address)
4. File between January 1 and April 30 (but late filings are accepted up to 2 years retroactive)

You only file ONCE. It stays in effect until you sell or stop using the property as your primary residence.

Sources:

• Texas Tax Code Section 11.13 (homestead exemption)
• Texas Constitutional Amendment Prop 4 (2023) — $100K school exemption
• DCAD, TAD, CCAD, DCAD — application forms
• Texas Comptroller — property tax exemption guide

This takes 10 minutes and saves $1,000+ per year. Every year. For as long as you own the home.

Whats your experience been?