Texas Homestead Exemption and Appraisal-Cap Updates

Texas homestead figures moved twice in two years, so a lot of older material is now wrong. This page gives the current numbers, the trajectory, and, just as important for a candidate, what the exam actually tests versus what is just current consumer news.

What is the current Texas homestead exemption?

Snippet answer: 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 a slice of your home's value from taxation. The $140,000 figure applies to school district taxes, which are the largest part of most Texas property tax bills.

• 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

Snippet answer: 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

Snippet answer: Under Texas Tax Code Section 23.23, once a home has a homestead exemption, its appraised value for taxation cannot rise more than 10% per year, plus the value of new improvements. The cap starts January 1 of the year after the home first qualifies.

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 cap limits the increase in appraised value for tax purposes to 10% a year.
• New improvements, like an addition, are added on top of the capped value.
• It begins January 1 of the year after the homestead first qualifies.

The cap is why a home's capped appraised value can lag its market value after a few years of rising prices. The market value can jump, but the capped appraised value climbs at most 10% a year. Exemptions are then subtracted from that capped appraised value to reach the taxable value.

How the exemption has changed

Snippet answer: 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.

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.

What is actually testable on the exam

Snippet answer: 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 10% cap limits annual homestead value growth, and over-65 and disabled owners get added 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

Snippet answer: 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 assessed value, then subtract applicable exemptions to get the taxable value.
• 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, a home with a homestead exemption cannot have its appraised value for taxes rise more than 10% per year, plus new improvements. It starts January 1 of the year after the home first qualifies.

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.

Sources and Methodology

This article was reviewed against Texas Comptroller and Texas Tax Code sources on June 24, 2026. The current dollar amounts, a $140,000 general school district residence homestead exemption and a $60,000 additional exemption for owners who are over 65 or disabled, were verified against Texas Comptroller guidance. Those increases were approved by Texas voters in November 2025, the general exemption raised from $100,000 by Proposition 13 and the over-65 and disabled exemption raised from $10,000 by Proposition 11; the earlier increase of the general exemption from $40,000 to $100,000 was approved as Proposition 4 in 2023. The 10% appraisal cap on residence homesteads is set by Texas Tax Code Section 23.23, which limits the annual increase in a homestead's appraised value for tax purposes to 10% plus the value of new improvements, beginning January 1 of the year after the home first qualifies. Exemption figures are set by the Legislature and approved by voters and can change, so the dollar amounts here are reported as of 2026 and should be verified with the Texas Comptroller or the local appraisal district. The exam tests the underlying concepts and property tax math rather than the current dollar amounts.

Official Source Links

• Texas Comptroller: property tax exemptions
• Texas Comptroller: valuing property
• 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.