Texas Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability

Texas (TX) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Texas property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.

All Texas property tax exemptions at a glance

Exemption	Who qualifies	Benefit	Typical savings
Homestead (general)	Owner-occupied primary residence	~$60,000 value reduction	$947/yr est.
Senior / Age 65+	Owner-occupied; age 65+; often income-capped	Additional reduction or freeze	$200 – $2,000/yr
Disabled veteran	Service-connected disability rating	Up to 100% exemption in many states	$1,000 – full bill
Disability (non-veteran)	Permanent total disability	Reduction + sometimes freeze	$200 – $1,500/yr
Surviving spouse	Of veteran, first responder, or senior	Continuation of decedent's exemption	Same as deceased's benefit
Agricultural / farm	Active agricultural use	Use-value assessment instead of market	30% – 80% lower bill

Estimated savings use Texas's effective property tax rate of 1.58% on the median home value of $260,400. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.

The 2023 SB 2 Reforms (Implemented 2024-2026)

Senate Bill 2 of the 88th Legislature (3rd called session, 2023) was the largest Texas property tax reform in a generation. Key elements now in effect:

School district homestead exemption increase

Raised from $40,000 to $100,000. For over-65 and disabled homeowners, the additional school district exemption rose from $10,000 to $60,000, creating a combined exemption of $160,000.

Over-65 school tax ceiling (tax freeze)

Already in effect, this ceiling freezes the school district tax amount at the level paid in the year the homeowner turned 65 (or became disabled). The 2023 reforms did not alter the ceiling mechanism but increased the underlying exemption, reducing the ceiling amount for all seniors who qualified after 2023.

School district M&O rate compression

The state compressed school district Maintenance & Operations (M&O) tax rates by an additional 10.7 cents per $100 over 2024-2025. This is the rate the state effectively reduces on your behalf by replacing it with state-level recapture funding.

Circuit breaker for non-homestead — 20% appraisal cap

Real property under $5 million in appraised value that is not a homestead is subject to a temporary 20% appraisal cap. This is a pilot program that runs through tax year 2026 and may be renewed. It primarily benefits small rental property owners and small commercial owners.

Proposition 13 (November 2025) — pending further increase

Texas voters approved SB 4/Proposition 13 in November 2025, which would raise the school district homestead exemption from $100,000 to $140,000. Final implementation is being phased in; for tax year 2026 the $100,000 figure remains the working number pending completion of the compliance process.

Homestead Exemption — File by April 30

The Texas homestead exemption is not automatic. You must file Form 50-114 (Application for Residence Homestead Exemption) with your county appraisal district. A first-time homeowner has two years from the qualifying date to file, and late applications can be accepted for up to two years. For the current tax year's bill, file by April 30.

Who qualifies

• The property is your principal residence as of January 1 of the tax year
• You own an ownership interest in the property
• You (or the qualifying occupant for certain exemptions) occupy the property

Components of the homestead exemption

• School district exemption: $100,000 off appraised value for school tax (SB 2 / 2023)
• County homestead exemption: Optional, up to $3,000 per Texas Tax Code 11.13(n), or a percentage up to 20% set by the county
• City homestead exemption: Up to 20% of appraised value, minimum $5,000, if offered by the city
• Over-65 exemption: Additional $10,000 school tax exemption + the $60,000 SB 2 increase = $70,000 additional. Plus a school tax ceiling freezing school tax at the year-65 level.
• Disabled exemption: Same as over-65 ($10,000 + $60,000 = $70,000 additional + school tax ceiling). Cannot be combined with over-65 — claim the one that produces the larger benefit.
• Disabled Veteran exemption: Sliding scale based on VA disability rating, from $5,000 (10-29%) up to $12,000 (70%+). For 100% permanently disabled veterans: full exemption on the entire homestead.
• Surviving Spouse of a KIA servicemember: full exemption on homestead.

Property Tax Deferral for Seniors and Disabled

Texas Tax Code 33.06 allows homeowners age 65+ or disabled to defer payment of property tax on their homestead for as long as they continue to own and occupy the home. Unpaid tax accumulates as a lien with interest (5% per year, which is below-market), repaid when the property is sold or transferred.

Deferral is valuable for cash-strapped seniors, but the accrued tax and interest reduce the inheritance available to heirs. File Form 50-126 with the appraisal district to start deferral. Taxes that were already delinquent before deferral remain subject to normal penalties.

Frequently Asked Questions

What is the Texas homestead exemption for 2026?

The school district homestead exemption is $100,000 for the 2026 tax year (under SB 2 enacted in 2023). Over-65 and disabled homeowners receive an additional $60,000 school district exemption, for a combined $160,000. County and city homestead exemptions are optional local add-ons that vary by jurisdiction. File Form 50-114 with your appraisal district by April 30 to apply for the current tax year.

What is the SB 2 circuit breaker in Texas?

Texas Senate Bill 2 (2023) included a circuit breaker for real property valued under $5 million that is not a homestead — the appraised value cannot rise more than 20% per year. This is a pilot program through the 2026 tax year that may be renewed. It benefits small rental and commercial property owners.

How do I qualify for the over-65 exemption in Texas?

Turn 65 during the tax year. File Form 50-114 with your appraisal district and select the over-65 option. The exemption adds $10,000 + $60,000 school district exemption on top of the $100,000 general homestead, and activates the school tax ceiling that freezes your school district tax bill at the year-65 level. The ceiling is transferable if you move to another Texas primary residence.

Does Texas have a property tax deferral for seniors?

Yes. Under Texas Tax Code 33.06, homeowners age 65+ or disabled may defer property tax on their homestead indefinitely. Unpaid tax accrues 5% annual interest and is repaid when the property is sold or transferred. File Form 50-126 with your county appraisal district. Taxes already delinquent before the deferral are not shielded from normal penalty and interest.