Your 2026 Texas Homestead Exemption Got Bigger. Plus How to Protest Your Property Taxes

If you own a home in Texas, your property tax bill just got a little lighter. And if you’re over 65 or disabled, it got a LOT lighter.

In November 2025, Texas voters passed Proposition 13, which increased the homestead exemption from $100,000 to $140,000. At the same time, Proposition 11 boosted the over-65 and disabled exemption from $10,000 to $60,000.

Both changes are retroactive to January 1, 2025. So if you haven’t filed for your homestead exemption yet, now is the time. And if you’re a senior homeowner, your combined exemption is now $200,000.

But here’s the thing: getting the exemption is only half the battle. You also need to make sure your property is appraised fairly. And with Travis County’s May 15 protest deadline coming up, lets talk about both.

What the New Texas Homestead Exemption Means for Your Tax Bill

The homestead exemption applies to your primary residence. It reduces the taxable value of your home for school district taxes (note: it doesn’t affect city or county taxes, just school taxes).

So if your home is valued at $500,000, you can now subtract $140,000 from that for school tax purposes. Your taxable value becomes $360,000 instead of $500,000.

How much does that save? It depends on your school district’s tax rate. In Eanes ISD, the rate is about $0.8322 per $100 of taxable value. In Lake Travis ISD, it’s $1.0397. In Dripping Springs ISD, it’s $1.1052.

The average Texas homeowner will save about $484 per year from the new exemption. But if you’re in a higher-tax district or own a more expensive home, your savings could be $600, $800, even $1,000+ annually.

Not bad for checking a box on a form.

Seniors and Disabled Homeowners: Your Exemption Is Now $200,000

If you’re 65 or older (or disabled), you get both exemptions. The $140,000 standard homestead exemption PLUS the $60,000 senior/disabled exemption.

That’s a combined $200,000 off your home’s taxable value for school taxes.

Lets say you own a $600,000 home in Lakeway. Your taxable value drops to $400,000. At Lake Travis ISD’s $1.0397 rate, you’re saving over $2,000 per year in school taxes alone.

Plus, most school districts freeze your school taxes once you turn 65 and file the exemption. Your bill can’t go up (though it can go down if values drop). This is huge for retirees on fixed incomes.

How Did We Get Here? A Quick History of the Texas Homestead Exemption

Texas has been steadily increasing the homestead exemption over the past few years. Here’s the timeline:

• Pre-2022: $25,000 exemption (where it had been for decades)
• 2022: Increased to $40,000
• 2023: Proposition 4 bumped it to $100,000 (this was the big leap)
• 2025: Proposition 13 raised it again to $140,000

That’s a $115,000 increase in just three years. For context, the exemption sat at $25,000 from the mid-1990s until 2022.

Why the sudden generosity? A few reasons. Texas has been flush with surplus revenue (thanks to sales tax collections and a strong economy). Property values have skyrocketed (especially in Austin, where median prices jumped 50%+ between 2019 and 2022). And voters were furious about rising tax bills.

The state responded by cutting school tax rates AND increasing exemptions. Both Props 11 and 13 passed with over 77% approval. That’s about as bipartisan as Texas politics gets these days.

Do You Already Have the Exemption? Or Do You Need to Apply?

If you already filed for a homestead exemption in prior years, you don’t need to do anything. The new $140,000 exemption amount applies automatically.

But if you:

• Bought a home in 2024 or 2025 and haven’t filed yet
• Turned 65 in 2024 or 2025 and haven’t filed for the senior exemption
• Moved and changed your primary residence
• Never filed a homestead exemption (yes, some people forget)

…then you need to file with your county appraisal district. In Travis County, that’s Travis Central Appraisal District (TCAD). In Hays County, it’s Hays CAD. In Williamson County, it’s Williamson CAD.

The deadline to file is typically April 30 (though late filings are sometimes accepted). You’ll need proof of ownership, a driver’s license showing your address, and maybe a utility bill.

Most appraisal districts let you file online. It takes about 10 minutes.

Now About That Property Tax Protest

Ok, so you’ve got your exemption filed. Great. But what if your home’s appraised value is too high?

This is where property tax protests come in. And honestly, more homeowners should be doing this.

Every year, your county appraisal district sends you a Notice of Appraised Value. It tells you what they think your home is worth. That value determines your tax bill.

But here’s the thing: appraisal districts are often behind the market. If home prices have dropped (like they have in Austin, where median prices are down about 20% from the 2022 peak), your appraisal might not reflect that yet.

Or maybe your home has issues the appraisal district doesn’t know about. Foundation problems. An old roof. Outdated finishes. These all affect value.

You have the right to challenge your appraisal. And you should.

How to Protest Your Property Taxes in Travis County

The deadline to file a protest in Travis County is May 15, 2026 (or 30 days after your Notice of Appraised Value is mailed, whichever is later).

Here’s how to do it:

Step 1: Check Your Appraisal

When you get your notice from TCAD, compare the appraised value to recent sales in your neighborhood. Look at homes on the same street, similar size, similar condition.

If comparable homes have sold for less than your appraised value, you’ve got a case.

You can search recent sales on the TCAD website or pull MLS data (we can help with that). Focus on sales from the past 6-12 months.

Step 2: File Your Protest

You can file online at traviscad.org (this is the easiest way), by mail, or in person at 850 East Anderson Lane.

When you file, you’ll select your reason for protesting. The two most common are:

• “Value is over market value” (your home isn’t worth what they say it is)
• “Value is unequal compared with similar properties” (your neighbor’s home is valued lower for no good reason)

You’ll also provide your estimate of your home’s value. Be honest. Don’t lowball it by 30%. Use real comps and give them a number you can defend.

Step 3: Gather Your Evidence

Once you file, you’ll eventually have a hearing (either informal settlement or formal ARB hearing). You’ll need evidence to support your case.

Good evidence includes:

• Recent sales comps – Similar homes in your neighborhood that sold for less than your appraisal
• Photos of defects – Foundation cracks, roof damage, outdated kitchens, etc.
• Recent appraisals – If you refinanced or got an appraisal for any reason, bring it
• MLS data – Listing descriptions, days on market, price reductions

The more concrete your evidence, the better your chances.

Step 4: Don’t Wait Until the Last Minute

TCAD’s online system gets slammed near the May 15 deadline. If the site crashes or you have technical issues, too bad. They don’t extend deadlines for website problems.

File early. Like, as soon as you get your notice. You can always submit more evidence later.

What Happens After You File?

In Travis County, the process starts with an informal settlement. TCAD will review your evidence and may offer to lower your value.

If you accept the offer, you’re done. If you don’t, you’ll move to a formal hearing with the Appraisal Review Board (ARB).

At the hearing, you present your case. The appraisal district presents theirs. The ARB makes a decision.

Most protests result in at least a small reduction. In 2025, Travis County had over 150,000 protests filed (about a 38% protest rate). That’s a lot of people challenging their appraisals.

And honestly, you should be one of them.

What About Other Counties?

If you live in Bee Cave, Dripping Springs, or Westlake, you might be in Hays or Travis County (or both, depending on where your property line falls).

The process is similar across counties, but deadlines and filing procedures vary slightly:

• Travis County: traviscad.org
• Hays County: hayscad.com
• Williamson County: wcad.org

Check your county appraisal district’s website for specific instructions.

Why Buyers Should Care About This

If you’re shopping for a home right now, property taxes are part of your total cost of ownership. And they matter just as much as your mortgage payment.

A $600,000 home in Lake Travis ISD might have $12,000-$15,000 in annual property taxes (depending on the city and special districts). That’s $1,000-$1,250 per month on top of your mortgage.

The homestead exemption will save you about $400-$500 per year. But if you protest successfully and knock $50,000 off your taxable value? That’s another $500 saved.

Add it up, and you’re looking at real money.

When we work with buyers, we walk through the full cost picture before making an offer. Taxes, insurance, HOA fees, maintenance. We pull tax histories for the property. We estimate what YOUR tax bill will look like with the homestead exemption applied.

Because buying a home isn’t just about the price. It’s about what you’ll pay every month for as long as you own it.

One More Thing: Portability

If you’re a senior homeowner (or disabled) and you’re thinking about downsizing or moving, Texas lets you transfer your school tax ceiling to a new home.

This is called “tax ceiling portability.” Basically, if your school taxes are frozen at $8,000/year, and you sell and buy a new home, you can transfer that $8,000 ceiling to the new property (with some adjustments).

It’s a little complicated, but it means you don’t lose your tax freeze when you move. You just need to file the right forms with your new county appraisal district.

We help clients navigate this all the time. It’s one of those things that can save you thousands of dollars if you do it right.

The Bottom Line

Your Texas homestead exemption is now $140,000. If you’re over 65 or disabled, it’s $200,000. Both changes are already in effect.

If you haven’t filed for your exemption, do it now. If you have filed, you’re automatically getting the new amount.

And when you get your Notice of Appraised Value this spring, don’t just file it away. Look at the number. Compare it to recent sales. If it’s too high, protest. The deadline is May 15.

You’ve got nothing to lose and potentially hundreds (or thousands) of dollars to gain.

Thinking about buying a home in Austin? We help buyers understand the full cost picture (taxes, insurance, HOA, everything) before making an offer. Reach out to Ed Neuhaus and lets talk about what you’re looking for.