Save on Taxes! 2026 TX Homestead Exemption Changes 2026: What You Need to Know

Buyer's GuideMarket Updates
Written By Emilio Cinelli

4-minute read

Key Takeaways

  • TX homestead exemption limit was raised in 2026, retroactive to 2025

  • Senior homeowners get additional exemptions

  • How to file Form 50-114 to claim the exemption. It is not automatic.

  • New homeowners can file immediately after closing. No more waiting until January 1.

The Biggest Property Tax Relief in Texas History Just Got Bigger

Texas has been cutting property taxes in stages since 2023. The 2023 reform raised the school district homestead exemption from $40,000 to $100,000, the largest single property tax cut in state history at the time.

Then in 2025, the legislature went further.

Texas voters approved constitutional amendments in November 2025 raising the homestead exemption to $140,000 for all homeowners, and to $200,000 for homeowners who are disabled or 65 and older. Those changes are now in full effect for the 2026 tax year and they apply retroactively to 2025 as well.

Combined, the 2023 and 2025 reforms save the average Texas homeowner roughly $1,762 per year.

For Collin County specifically, where median home values run around $450,000 to $500,000 and combined tax rates typically land between 1.7% and 2.0%, the savings are even more meaningful than the statewide average suggests.

What the Numbers Actually Mean for Your Tax Bill

Here is how to think about it in plain terms.

The homestead exemption removes $140,000 from your home's assessed value for school district tax purposes. School taxes make up the largest portion of your property tax bill in most North Texas cities.

At a school district tax rate of 1.0%, the $140,000 exemption saves you $1,400 per year on school taxes alone. Stack in county and city exemptions, which vary by jurisdiction, and total annual savings often exceed $2,000.

For a homeowner in Frisco with a $550,000 home and a combined school district tax rate around 1.2%, the $140,000 exemption translates to approximately $1,680 in annual savings on school taxes. That number does not include the additional compression from the school tax rate cuts that have also been phased in since 2023.

For seniors and disabled homeowners, the combined $200,000 exemption is even more significant. At a 1.2% school tax rate, a $200,000 exemption saves approximately $2,400 per year on school taxes alone, and it activates a school district tax ceiling that freezes your school tax bill at its current level. That protection holds regardless of what happens to your home's appraised value in future years.

The Part Most Homeowners Miss

Here is the detail that matters most: the exemption is not automatic.

You must file Form 50-114, the Application for Residence Homestead Exemption, with your county appraisal district to claim it. Most homeowners assume their title company or lender handled this at closing. It is ultimately the owner's responsibility.

To check whether your exemption is already on file, visit the Collin Central Appraisal District website at collincad.org, search for your property, and look for the homestead exemption listed under your account. If it is not there, you need to file.

The standard filing deadline is April 30 each year. If you missed that deadline, Texas allows late applications for up to two prior tax years. That means you can still file and receive a refund or credit on taxes already paid.

One more thing worth knowing: as of January 1, 2022, new homeowners no longer have to wait until the following January 1 to qualify. You can file for your homestead exemption immediately after closing. If you bought a home in the past year or two and have not filed yet, this applies to you.

What the Exemption Does & Doesn’t Do

The homestead exemption reduces your taxable value by a fixed amount. It does not lower your home's appraised value or affect what a buyer would pay for your home.

Once your homestead exemption is active, it also triggers the 10% homestead cap. That means your taxable value cannot increase by more than 10% per year, regardless of how fast the market moves. In a fast-growing market like North DFW, that cap compounds in value over time.

What the exemption does not fix is an overvalued appraisal. If the appraisal district has your home valued higher than comparable sales suggest, you are paying taxes on an inflated number even after the exemption is applied. That is a separate issue addressed through the protest process, and the two strategies work best together.

How to File in Collin County

The process is straightforward.

Step 1: Go to collincad.org and search your property to confirm whether a homestead exemption is already on file.

Step 2: If not filed, download Form 50-114 from the Texas Comptroller's website at comptroller.texas.gov, or pick it up at the Collin Central Appraisal District office at 250 Eldorado Pkwy, McKinney, TX 75069.

Step 3: Submit online through CCAD's e-Services portal, by mail to the address above, or in person. You will need a copy of your Texas driver's license or state ID showing your property address.

Step 4: If you are 65 or older or have a qualifying disability, indicate that on the form to claim the additional $60,000 exemption and activate the school district tax ceiling.

Once filed, you do not need to reapply every year unless the appraisal district requests verification or you move to a new home.

Here's What This Means for You

If you own a home in Collin County and have not confirmed your homestead exemption is on file, this is worth checking today. The 2026 changes are in effect, but they only benefit homeowners who have filed. A five-minute search on collincad.org tells you whether you are already covered.

If you are considering buying a home in North DFW, this is part of the affordability picture that does not always get discussed upfront. A $140,000 exemption on a $500,000 home at a 1.7% combined tax rate saves you roughly $2,380 per year, about $198 per month, that does not show up in your mortgage payment but absolutely affects your total cost of ownership.

Your title company or attorney can walk you through what this means for your specific transaction.

FAQ

  • The Texas school district homestead exemption is $140,000 for 2026, up from $100,000. This means $140,000 of your home's assessed value is not subject to school district taxes. Texas voters approved this increase in November 2025, and it applies retroactively to the 2025 tax year as well.

  • Savings depend on your home's assessed value and your specific school district tax rate. At a school district tax rate of 1.2%, typical for many Collin County cities, the $140,000 exemption saves approximately $1,680 per year on school taxes. Combined with county and city exemptions and the school tax rate compression from 2023 reforms, total annual savings for the average Collin County homeowner often exceed $2,000.

  • No. You must file Form 50-114 with your county appraisal district to claim it. To check whether your exemption is already on file in Collin County, search your property at collincad.org. If it is not listed, file as soon as possible. Late applications are accepted for up to two prior tax years.

  • Since January 1, 2022, new homeowners can file immediately after closing. There is no longer a requirement to wait until January 1 of the following year. If you purchased a home in the past year or two and have not filed, you can do so now and receive retroactive credit.

  • Homeowners who are 65 or older or who have a qualifying disability receive an additional $60,000 school district exemption on top of the standard $140,000, for a combined total of $200,000 exempt from school taxes. This exemption also activates a school district tax ceiling that freezes your school tax bill at its current level, protecting you from future increases.

Conclusion

Texas has delivered the largest property tax relief in state history over the past two years. The $140,000 homestead exemption is now in effect. But it only works for homeowners who have filed. Five minutes on collincad.org tells you whether you are already covered, and if you are not, filing today is one of the simplest ways to reduce your cost of ownership in North DFW.

Share this with a neighbor or friend who owns a home in North Texas. This one is worth passing along.

Sources

Emilio Cinelli https://www.homeswithcinelli.com
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