Texas homestead exemption calculator, with the 10% appraisal cap.
Estimate your annual savings from the homestead exemption that reduces taxable value, see the dollar savings at the rate per $100, and check how the 10% homestead appraisal cap limits annual appraised-value increases.
A qualified Texas residence homestead exemption reduces taxable value before the rate is applied. The dollar savings equal the exemption divided by 100, times the rate per $100. Separately, the 10% homestead appraisal cap limits how much the appraised value can rise each year, plus the value of any new improvements. Exemption amounts vary by taxing unit, so use the figure your appraisal district or the question gives.
The exemption is subtracted from appraised value before the rate is applied.
Savings equal the exemption divided by 100, multiplied by the rate per $100.
A homestead's appraised value cannot rise more than 10% per year, plus new improvements.
The exemption and the cap apply only to a qualified homestead, not rentals or land.
See what the homestead exemption takes off your taxable value.
Use the appraised value from your county appraisal district. For a homestead this is already limited by the 10% appraisal cap.
Enter the exemption amount the question or your appraisal district gives. Texas homestead exemption amounts vary by taxing unit (school district, county, special districts).
Texas combines tax rates from each taxing unit into a rate per $100 of value.
Enter last year's appraised value to see how much the 10% homestead appraisal cap can shield. Leave blank for exemption savings only.
The homestead exemption reduces taxable value, not the tax dollar-for-dollar. Its dollar savings equal the exemption divided by 100, multiplied by the rate per $100. The 10% appraisal cap is a separate protection that limits how fast appraised value can rise.
Email your homestead savings and the cheat sheet.
Get the exemption math, the 10% appraisal cap context, and your current savings in one printable note.
How the exemption reduces taxable value
The homestead exemption is subtracted from the appraised value to produce the taxable value, and the rate per $100 is applied to that taxable value. Exemption amounts in Texas vary by taxing unit, so a school district exemption, a county exemption, and special-district exemptions can each reduce the taxable value differently. Use the figure the question gives.
Exemption math versus your real bill
This page focuses on the exemption savings itself. For a full property tax bill with the per-$100 rate and a mills mode, use the Texas property tax calculator. A live bill combines several taxing units and any additional exemptions you qualify for.
| Item | Amount | Applies to |
|---|---|---|
| Homestead exemption (reduces taxable value) | Varies by unit | Subtracted from appraised value before the rate |
| School district homestead exemption | Illustrative | Reduces taxable value for school district taxes |
| County / special-district exemptions | Illustrative | May add further reductions, set locally |
| 10% homestead appraisal cap | 10% / year | Limits annual appraised-value increase for a homestead |
| Over-65 and disability exemptions | Additional | Extra reductions for qualifying homeowners |
Texas homestead exemption amounts and qualifying rules are set by the Legislature and applied by each taxing unit, so the dollar figures change over time and differ by county and school district. Use the exemption amount the exam question gives, and for a real property confirm the current amounts with your county appraisal district and the Texas Comptroller.
How does the Texas homestead exemption work?+
A residence homestead exemption reduces the taxable value of a qualified primary residence before the tax rate is applied, which lowers the tax bill. The exemption is subtracted from the appraised value, and the remaining taxable value is taxed at the rate per $100. Exemption amounts vary by taxing unit (school district, county, and special districts).
How much do you save with a Texas homestead exemption?+
The dollar savings equal the exemption amount divided by 100, multiplied by the rate per $100 of value. For example, the $140,000 school-district residence homestead exemption at a rate of $2.20 per $100 saves about $3,080 per year. The exemption is not a dollar-for-dollar tax credit; it reduces the taxable value, and exemption amounts vary by taxing unit.
What is the 10% homestead appraisal cap in Texas?+
The 10% homestead appraisal cap limits how much the appraised value of a qualified residence homestead can increase in a single year. The capped appraised value cannot rise more than 10% over the prior year's appraised value, plus the value of any new improvements, even when market value rises faster. It is a separate protection from the homestead exemption.
Is the 10% cap the same as the Texas homestead exemption?+
No. The Texas 10% homestead appraisal cap limits certain annual appraised-value increases after the property qualifies as a residence homestead. The homestead exemption is different: it reduces taxable value before the tax rate is applied. The Texas exam can test both, so keep the cap, exemption, and creditor-protection concepts separate.
Does the homestead exemption apply to a rental property?+
No. The residence homestead exemption and the 10% appraisal cap apply only to a qualified primary residence. They do not apply to rental property, second homes, or raw land.
Are there additional Texas homestead exemptions?+
Yes. Qualifying homeowners may receive additional exemptions, such as exemptions for homeowners age 65 or older and for homeowners with disabilities, on top of the general residence homestead exemption. Confirm the amounts and eligibility with your county appraisal district.