One of the biggest wins for Texas homeowners in years is now in full effect. For the 2026 tax year, the mandatory school-district residence homestead exemption has jumped from $100,000 to $140,000 — part of the state’s largest property tax relief package to date. Homeowners who are 65 or older or disabled may qualify for an additional $60,000 school-district exemption on top of that.
Here’s why it matters: your school-district taxes are calculated on your home’s value minus the exemption. A larger exemption means a smaller taxable value, which for many Houston-area families translates into meaningful annual savings. Because school taxes are usually the biggest slice of a Texas property tax bill, this change can add up.
A few important details to keep in mind. To qualify, you must have owned and occupied the home as your primary residence as of January 1 of the tax year. Seniors and disabled homeowners generally can’t stack both of those specific additional exemptions — it’s one or the other — though local-option exemptions may apply on top. Voters approved this overhaul in late 2025, and the relief applies broadly for 2026.
The single most important step is making sure your homestead exemption is actually on file. If you bought your home recently, moved, or never formally applied, you could be leaving real money on the table. Exemptions are filed with your County Appraisal District using the Texas Comptroller’s Application for Residence Homestead Exemption (Form 50-114), and most counties want it by the spring deadline.
This article is educational information, not tax or financial advice — every situation is different, and your appraisal district or a tax professional can confirm exactly what you qualify for. But the headline is genuinely good news: Texas homeowners are getting a larger break, and it’s worth two minutes to confirm you’re claiming it.
If you’re buying a home this year, we’ll make sure homestead filing is on your closing checklist so you don’t miss out. And if you’re a current homeowner unsure whether your exemption is in place, we’re happy to point you in the right direction.
Reach out to The Audra O’Neal Team and we’ll help you connect the dots on your homestead exemption.
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The Audra O’Neal Team | ONTX Realty Partners
Call or Text: 281-972-8200
Email: ONealTeamRocks@gmail.com
Web: http://www.ONealTeamRocks.com
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