One important post-purchase step that can save you money each year is filing for your homestead exemption. This exemption applies only to your primary residence and can significantly reduce your property tax bill.
Benefits of Filing
The homestead exemption can reduce the appraised value of your primary residence by up to 20%, depending on the taxing authority (school district, county, MUD, etc.).
Below is an example of a home appraised at a $300,000 value.
Beyond the potential savings, the homestead exemption also includes a powerful benefit: the homestead cap, which helps protect you as home values rise.
Starting in the second year, your home’s taxable value can only increase by up to 10% per year, plus the value of any new improvements- even if the market value jumps higher.
Bottom line: If home prices rise faster than 10%, the cap can create meaningful long-term property tax savings.
How to File for Exemptions
Step 1: Confirm Eligibility & Gather Info
Make sure the home is your primary residence and your Texas ID reflects the property address. You can update, renew, or replace your license HERE.
Step 2: File Online (Free)
Submit your application online by uploading your ID and property details. Once approved, you do not need to file again unless you move and claim a new primary residence- Texas allows only one homestead exemption per person.
