QUICK ANSWER
The Texas school district residence homestead exemption is $140,000. Qualifying owners who are age 65 or older or disabled receive an additional $60,000, for a combined $200,000 reduction in school-taxable value. The residence homestead appraisal limitation generally caps annual growth in appraised value at 10%, plus new improvements, beginning January 1 after the first year the owner qualifies.
EXAM PREP ONLY
The Pearson VUE state outline tests homestead and property-tax concepts, not a list of current exemption amounts. Learn what an exemption changes, how the appraisal limitation works, and how to calculate taxable value. For an actual property, use the Texas Comptroller and local appraisal district.
Texas homestead figures changed twice in two years. This page owns the current dollar amounts and legislative history. Use the broader homestead protections guide for creditor protection and spouse issues, and the property-tax guide for appraisal districts, protests, liens, deadlines, and special assessments.
What is the current Texas homestead exemption?
As of 2026, the residence homestead exemption for school district taxes is $140,000. Texas voters raised it from $100,000 to $140,000 through Proposition 13 in November 2025. The exemption lowers the value your home is taxed on for school district taxes.
A homestead exemption removes part of a qualifying home's value from taxation. The $140,000 figure applies to school district taxes.
- It applies to a homeowner's principal residence, the homestead.
- It reduces the value used to calculate school district taxes, not the market value of the home.
- It is the headline exemption, and the one that changed most recently.
For the underlying protections, see Texas homestead protections and tax exemptions.
The over-65 and disabled exemption
Homeowners who are 65 or older or disabled get an additional $60,000 school district exemption, raised from $10,000 by Proposition 11 in November 2025. Combined with the general exemption, that is $200,000 off school-taxable value.
This is a separate, additional exemption layered on top of the general homestead exemption.
- The additional amount is $60,000 for over-65 or disabled owners.
- It stacks with the $140,000 general exemption, for $200,000 total off school-taxable value.
- Over-65 owners also benefit from a school tax ceiling that limits future increases.
Both the general increase and this over-65 and disabled increase were approved on the same November 2025 ballot.
The 10% homestead appraisal cap
Under Texas Tax Code Section 23.23, the maximum appraised value for a qualifying residence homestead is generally the lesser of market value or the prior appraised value increased by 10%, plus the value of new improvements. The limitation begins January 1 after the first tax year in which the owner qualifies the property as a residence homestead.
This is the concept most likely to be useful on the exam, because it is a stable rule rather than a changing dollar figure.
- The limitation generally restricts year-over-year growth in appraised value to 10%.
- New improvements, like an addition, are added on top of the capped value.
- It begins January 1 after the first tax year in which the owner qualifies.
The limitation can cause appraised value to lag market value after several years of rising prices. New improvements are the important exception to a simple 10% shortcut. Exemptions are applied after the appraisal rules to determine taxable value for each taxing unit.
How the exemption has changed
The school district homestead exemption went from $40,000 to $100,000 in 2023 through Proposition 4, then to $140,000 in 2025 through Proposition 13. The over-65 and disabled add-on went from $10,000 to $60,000 through Proposition 11 in 2025.
The trajectory explains why so much study material is out of date.
| Exemption | Prior | Current | Change |
|---|---|---|---|
| General school homestead | $100,000 | $140,000 | Prop 13, Nov 2025 |
| Over-65 or disabled add-on | $10,000 | $60,000 | Prop 11, Nov 2025 |
| Earlier general exemption | $40,000 | $100,000 | Prop 4, 2023 |
If a practice question or study guide still uses $40,000 or $100,000 for the general exemption, it predates the current figures. These updates are part of a wider set of 2026 changes, covered in what changed for the Texas exam in 2026.
FOCUS ON WHAT IS TESTED
Learn the concepts and the math, not the headlines.
Pass Texas drills the property-tax concepts and calculations the exam actually tests, like how exemptions and the appraisal cap work and how to compute a tax bill, instead of dollar figures that change. Topic Practice and Math Coach included. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a pass guarantee.
What is actually testable on the exam
The exam tests the concepts and the math: what a homestead exemption does, how the 10% appraisal cap works, the existence of over-65 and disabled relief, and how to calculate a property tax bill. It does not test the current dollar amounts, which change with legislation.
This is where a candidate should spend study time, and where they should not.
- Worth knowing: a homestead exemption reduces taxable value, the appraisal limitation generally restricts annual growth in appraised value, and qualifying age 65 or older or disabled owners receive additional relief.
- Worth knowing: how to calculate property tax from an assessed value and a rate, expressed per $100 of value.
- Not worth memorizing: the exact $140,000 or $60,000 figures, which are current events, not stable exam content.
Treat the dollar amounts as context for talking with clients, and treat the concepts and math as exam material.
How property tax is calculated
Texas property tax is figured on the assessed value after exemptions, using a rate stated per $100 of value. The exemption lowers the assessed value, then the rate is applied. This calculation, not the exemption figures, is what the exam tests.
The math is the testable part, so make sure you can run it.
- Start with the applicable appraised value, account for any appraisal limitation, then subtract exemptions to find taxable value for that taxing unit.
- Apply the tax rate, which Texas states per $100 of value.
- Texas has no statewide property transfer tax, so closing math focuses on prorations and the items that actually apply.
Practice the calculation with property tax and mill rate problems and proration. For the wider set of Texas property-tax rules, see Texas property taxes, exemptions, and special assessments.
Frequently Asked Questions
For quick answers to every common Texas exam question, see the Texas real estate exam FAQ.
What is the Texas homestead exemption amount in 2026?
The school district residence homestead exemption is $140,000, raised from $100,000 by Proposition 13 in November 2025. Verify the current figure with the Texas Comptroller or your local appraisal district before relying on it.
How much is the over-65 or disabled homestead exemption?
An additional $60,000 for school district taxes, raised from $10,000 by Proposition 11 in November 2025. Combined with the general exemption, that is $200,000 off school-taxable value.
What is the 10% homestead cap in Texas?
Under Texas Tax Code Section 23.23, the maximum appraised value is generally the lesser of market value or the prior appraised value increased by 10%, plus new improvements. The limitation begins January 1 after the first tax year in which the owner qualifies the property as a residence homestead.
Do I need to memorize the exemption amounts for the Texas exam?
No. The exam tests the concepts and the property tax math, not the current dollar figures, which change with legislation. Learn how exemptions and the appraisal cap work, and how to calculate a tax bill.
Did the Texas homestead exemption change recently?
Yes. The general school exemption went from $40,000 to $100,000 in 2023, then to $140,000 in 2025. The over-65 and disabled add-on went from $10,000 to $60,000 in 2025.
MASTER THE PROPERTY-TAX MATH
Turn tax questions into easy points.
Practice the exemption, appraisal-cap, and property-tax calculations the Texas exam tests, with worked examples and a math coach. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.
Sources and Methodology
The Texas Comptroller's exemption guidance and Tax Code Section 11.13 supply the $140,000 and $60,000 school-district exemption amounts. Election records and the resulting Tax Code language support the 2023 and 2025 history. Tax Code Section 23.23 and the Comptroller's valuation guidance supply the appraisal-limitation formula, qualification timing, and new-improvement treatment.
Official Source Links
- Texas Comptroller: property tax exemptions
- Texas Comptroller: valuing property
- Texas Tax Code Chapter 11 (property-tax exemptions)
- Texas Tax Code Section 23.23 (homestead appraisal cap)
- TREC: Become a Real Estate Sales Agent
This post is educational content for Texas real estate sales agent candidates. It is not legal, tax, or licensing advice. Homestead exemption and appraisal-cap figures are set by law and can change, so confirm the current amounts with the Texas Comptroller or your local appraisal district, and study the underlying concepts and math for the exam rather than the dollar figures.