What in the World Is a Homestead Exemption?
If you recently moved to Texas from another state, there’s a good chance someone has asked you:
“Did you file your homestead exemption yet?”
And your response was probably something like:
“My what now?”
Don’t worry — you are definitely not alone.
As a Realtor here in Austin and the Hill Country, I work with a LOT of out-of-state buyers, and homestead exemptions are one of the most confusing parts of moving to Texas. Mostly because many states either:
don’t have them,
call them something different,
or don’t make property taxes such a major conversation topic.
(Welcome to Texas. We don’t have state income tax… but property taxes definitely keep things interesting.)
The good news?
A homestead exemption is actually pretty simple, and it can save you real money every year.
So… What IS a Homestead Exemption?
Imagine your house has a giant price tag attached to it for taxes.
A homestead exemption tells the county:
“Hey! This isn’t just a house I own — this is the home I actually LIVE in.”
Because of that, Texas gives homeowners a tax break on their primary residence.
Think of it like:
🏡 A homeowner discount.
Why Does It Matter?
Because Texas property taxes can be HIGH.
And while a homestead exemption won’t magically make them disappear (I wish), it can absolutely help reduce your taxable value and save money over time.
For many homeowners, filing takes:
less than 15 minutes
costs absolutely nothing
and can save hundreds or even thousands over the years
Not bad for a little paperwork.
The Main Types of Homestead Exemptions
1. General Residence Homestead Exemption
This is the big one most homeowners qualify for.
If:
you own the home,
AND it’s your primary residence,
…you probably qualify.
5th Grade Version:
Texas is basically saying:
“Thanks for planting roots here — here’s a little tax break.”
2. Over-65 Exemption
If you’re 65 or older, Texas gives additional tax benefits.
One of the biggest perks:
Some school taxes can get “frozen.”
Meaning they can stop increasing dramatically year after year.
Think of it like hitting the pause button on part of your tax bill.
3. Disability Exemption
Homeowners with qualifying disabilities may receive additional exemptions too.
And depending on the situation, these can sometimes be combined with other exemptions.
4. Disabled Veteran Exemptions
Texas has some incredible tax benefits for veterans.
Depending on disability rating, some veterans may qualify for:
major reductions,
or even a FULL property tax exemption.
That’s huge.
How Do You File?
Here’s the best part:
Filing is FREE.
If you get random mail asking you to pay someone to file your homestead exemption…
🚩 toss it straight into the trash.
Usually all you need is:
a Texas Driver’s License (Important 1st step)
your home address updated to match DL
basic property information
That’s it.
Katie’s Pro Tips 💡
Pro Tip #1:
Update your driver’s license FIRST.
This is one of the biggest reasons applications get delayed.
Your ID address should match the homestead property address.
Pro Tip #2:
You can only claim ONE homestead.
No sneaky double dipping.
It must be your primary residence.
Pro Tip #3:
Don’t forget after you move.
I cannot tell you how many people remember six months later.
Set a reminder now.
Pro Tip #4:
Keep an eye on your mail.
Your county appraisal district will still send annual notices and valuation updates.
Do not ignore those envelopes just because they look boring.
Official Filing Links
Travis County
Hays County
Final Thoughts
Texas real estate comes with a bit of a learning curve — especially if you’re relocating from another state.
But filing your homestead exemption is one of the easiest and smartest things you can do as a homeowner.
And if you’re ever unsure where to start, I’m always happy to help point my clients in the right direction.
— Katie Wilsey
Compass | Austin + Hill Country
Luxury Real Estate Advisor
