Texas does not impose a state-level property tax. Instead, property taxes are determined and collected by local entities such as counties, cities, and school districts, based on the property’s location.
Property taxes provide essential funding for city and county governments, supporting vital services such as road maintenance, infrastructure development, emergency response, law enforcement, fire protection, public education, libraries, parks, and a range of other local programs.
Texas Property Tax & Homestead ExemptionsTexas law allows for exemptions that reduce your property tax bill if you qualify. These exemptions may be partial (removing a percentage or fixed amount of your property’s value from taxation) or total (excluding the entire property).
Some exemptions are mandated by the state, while others are optional and decided by local taxing units. Homestead exemptions, which are granted by your county’s Central Appraisal District (CAD), reduce the taxable value of your home and lower your property tax bill.
New Homestead Law – Effective January 1, 2022
As of January 1, 2022, new homeowners no longer have to wait until the following year to claim their homestead exemption. You can now file and receive your exemption the same year you purchase the property.
For more details, contact your local CAD or visit the Texas Comptroller’s website.
How to File for a Homestead Exemption
Texas homeowners can apply for a General Residence Homestead Exemption for their primary residence:
- Online through your county’s Central Appraisal District (CAD) website.
On the Texas Comptroller’s website. - In person at your county CAD office.
To qualify, you must submit a copy of your Texas driver’s license or ID card, and the address on your ID must match the property address.
Common exemptions include:
- General Homestead
- Over 65
- Disabled Person
- Disabled Veteran Homestead
Rules & Qualifications
- You can apply for a homestead exemption immediately after closing on your home (effective January 1, 2022).
- You must own and occupy the home as your primary residence on January 1 of the year you apply. (Additional requirements apply for Over 65, Veteran, and Disability exemptions.) The home must be complete and habitable.
- You may only claim one property at a time as a homestead in Texas.Corporations or business entities cannot claim homestead exemptions. Family trusts may qualify—check with your CAD for details.
- A homestead may be a house, condo, or manufactured home. It can also include up to 20 acres of land, if it is owned by the homeowner and used for residential purposes.
