Texas school districts must exempt $140,000 of a qualifying residence homestead from school property taxes, and homeowners who are 65 or older or disabled get an extra $60,000 school exemption on top of that. You apply with your county appraisal district, usually before May 1, using the Comptroller's Form 50-114.

If you moved to Texas for no state income tax, this is the break that softens housing costs. School taxes are often the biggest piece of the bill, so missing the exemption leaves real money on the table.

How much does the Texas homestead exemption cut school taxes?

Tax Code Section 11.13(b) requires every school district to take $140,000 off the taxable value of a qualifying residence homestead. The Comptroller's example is plain: on a home appraised at $300,000, you pay school taxes as if the home were worth $160,000.

Homeowners age 65 or older, or who meet the state's disability standard, get an additional $60,000 school exemption under Tax Code Section 11.13(c). That stacks on the $140,000, so the school-tax reduction can reach $200,000 of value for those owners.

Cities, counties and other taxing units can also offer local-option homestead exemptions of up to 20% of appraised value (with a $5,000 floor). Counties that collect farm-to-market or flood control taxes must provide a $3,000 residence homestead exemption. Those extras vary by place, so check your county appraisal district (CAD) and your tax bill, not just the statewide school number.

Homestead properties also get the state's 10% appraisal cap, which limits how fast the taxable value of your homestead can rise year to year. That cap is a separate protection from the dollar exemption, and both matter when values are moving.

Who qualifies for a Texas residence homestead exemption?

You need an ownership interest in the property, and you must use it as your principal residence. You cannot claim a homestead exemption on another primary home in Texas or anywhere else.

Most applicants need a valid Texas driver's license or state ID, and the address on that ID generally has to match the property. Active-duty military members and residents of nursing homes or assisted living facilities have more flexibility on the address match. The Texas Tribune's October 2026 how-to notes that a Texas ID is effectively required for most applicants.

Heir-property owners whose names are not on a recorded deed can still qualify. The Comptroller's rules ask for an affidavit of ownership interest, a copy of the prior owner's death certificate, a recent utility bill, and any court records that show the inheritance. Other heirs living there usually need to authorize the application too.

Disabled veterans, surviving spouses of certain veterans and first responders, and owners of donated veterans' homes may qualify for additional or total exemptions. Those use the same Form 50-114 or Form 50-135, depending on the category. Ask your CAD which supporting VA or military documents to attach.

When and how do you apply?

File with the appraisal district in the county where the home sits, not with the Comptroller's office in Austin. The general deadline is before May 1. Many districts accept applications online; you can also mail Form 50-114 or drop it off. Districts must accept the Comptroller's form.

If you owned and occupied the home as of January 1, aim to file by the May 1 window for that tax year. If you buy after January 1 and the prior owner did not receive the homestead exemption for that year, the Comptroller says you may receive the exemption for the portion of the year you qualify. If the prior owner already had the exemption, you typically wait and apply for the next year as the new owner.

Once approved, you usually do not reapply every year unless your eligibility changes or the district asks you to verify. The Tribune notes that districts often do not mail a separate approval letter, so check your property record online, your notice of appraised value, or your fall tax bill to confirm the exemption is listed.

Missed a past deadline? Eligible owners can often apply late and claim a refund for prior years, commonly up to two years after taxes for that year were paid. Some categories, including certain disabled-veteran exemptions, allow even longer windows. Confirm the look-back rules with your CAD before you assume a year is closed.

What should new Texas buyers and movers do first?

Treat the homestead filing like a closing checklist item. Title companies and lenders do not file it for you. Put "CAD homestead application" on your move-in list next to changing the locks and updating your ID.

Get your Texas driver's license or ID sorted early if you relocated from out of state. The address match rule trips up people who still carry an out-of-state license months after closing.

While you are at the CAD site, note how notices of appraised value work for spring. If the number looks high later, you may want to protest your Texas property appraisal on a separate timeline from the exemption. And if you are still shopping, the Texas housing market in fall 2026 has more statewide listing and inventory context.

Property tax is local. A $140,000 school exemption does not mean every city or county offers the same extras, and your actual dollar savings depend on local rates. Read your notice and ask the CAD if something on the bill does not match what you filed.

FAQ

Is the $140,000 homestead exemption automatic in Texas?

No. You generally must apply with your county appraisal district. Once it is on the roll for your homestead, it usually stays until ownership or residency changes.

Do seniors get a bigger Texas homestead exemption?

Yes for school taxes. School districts must add another $60,000 for qualifying homeowners who are 65 or older or disabled, on top of the $140,000 general school exemption. Local taxing units may offer more under local option rules.

What form do I use?

Use Form 50-114, Application for Residence Homestead Exemption, from the Texas Comptroller. Affidavits for heir property and related situations are on Form 50-114-A. Disabled-veteran exemptions under Tax Code Section 11.22 use Form 50-135.

How do I know the exemption went through?

Check your property record on the CAD website, your spring notice of appraised value, or the tax bill that arrives in the fall. If it is missing and you applied on time, call the appraisal district and keep a copy of what you submitted.

Next step

A licensed local real estate agent can help you read how taxes were prorated at closing, point you to the right county appraisal district, and flag other first-year Texas owner tasks so the homestead exemption and related paperwork do not slip.

Sources: Texas Comptroller property tax exemptions, Texas Tribune homestead how-to (Oct. 20, 2026), Comptroller Form 50-114.

If your Texas notice of appraised value looks high, you can protest to your county appraisal review board (ARB). In most cases the deadline is May 15 or 30 days after the appraisal district mails the notice, whichever is later. Start with the Comptroller's protest guide and Form 50-132, and ask your CAD about an informal conference before the formal hearing.

A protest is about the appraisal record for that tax year, not about how much you personally can afford. Bring evidence. Showing up to say "taxes are too high" without comps, photos or repair estimates rarely moves the board.

What is a Texas property appraisal protest?

County appraisal districts set market value for property tax purposes. If you disagree with the value, exemptions, special appraisal status or other entries on the record, Tax Code rules let you file a protest with the ARB for that county.

The ARB is a separate panel from the appraisal district staff. At a formal hearing, both you (or your agent) and the district present evidence. The ARB's order applies only to the tax year at issue. If you win, the chief appraiser notifies the taxing units, and any refund follows if you already paid.

You do not have to use Form 50-132. A written notice that identifies the property, the owner and what you disagree with is enough. Many owners still use the form because it is clear and widely accepted. If someone will speak for you, file Form 50-162 to appoint an agent.

When is the protest deadline?

For most owners, it is May 15 or 30 days from the date the appraisal district mails the notice of appraised value, whichever is later. The Comptroller stresses that the 30-day clock runs from the mailing date, not from when you open the envelope.

Residence homesteads are supposed to get notices by April 1, and other properties by May 1, or as soon as practical after that. In softer markets, some districts mail fewer notices. Bexar Central Appraisal District, for example, reminded owners in May 2026 that they could still protest by May 15 even without a mailed notice, and that values could be checked online.

Offshore workers and full-time military members may have late-filing options. There are also limited late paths for failure to receive a required notice, large value errors (generally one-fourth high on a homestead, or one-third high on other property, with taxes paid on the undisputed portion), clerical errors, and agreed corrections with the chief appraiser. Do not count on a late path if you can still meet the regular deadline.

How should you prepare for the hearing?

Request an informal conference with the appraisal district first if one is offered. Many protests settle there. If not, you go to the ARB.

The ARB must send hearing details at least 15 days ahead. At least 14 days before the hearing, the district must send the Taxpayer Assistance Pamphlet, the ARB hearing procedures, and notice that you can request the evidence the district will use. Read those procedures. They control how many copies of evidence you need and whether you can appear in person, by phone, by video or by affidavit.

Evidence that actually helps includes:

• Photos of your property and of comparable sales
• Repair estimates or receipts for needed work
• Closing statements, listings or other sale-price docs
• Median-level or unequal-appraisal calculations if that is your claim
• Surveys, engineering reports, deed records or affidavits when relevant

Present a clear case. The ARB cannot adjust value based on your personal finances. General market conditions can matter; your private hardship does not. Be on time. Treat the hearing like a court proceeding even when the tone is informal.

After the order, you can appeal to district court within 60 days in many cases, or in some situations use regular binding arbitration or (for higher-value properties) the State Office of Administrative Hearings. Those paths have deposits, filing rules and partial-tax payment requirements. Talk to a Texas property-tax professional or attorney before you escalate.

How does a protest relate to your homestead exemption?

They are different tools on related bills. The homestead exemption reduces taxable value if you qualify and apply. A protest challenges whether the appraised value (or other appraisal record items) is correct for that year. You may need both.

If you have not filed for the Texas homestead exemption yet, do that on the CAD's exemption track while you decide whether to protest value. And if you are buying or selling into a market with more listings, our fall 2026 Texas housing market overview helps separate MLS asking prices from CAD appraised values.

CAD values and recent sale prices are not always the same thing. Use local sales that match your home's size, age, condition and location when you build a protest file.

FAQ

Do I need a lawyer or tax agent to protest?

No. Owners can protest on their own. Many hire agents or attorneys for complex properties. If you appoint someone, file Form 50-162 so the ARB and district know who represents you.

What if I never got a notice in the mail?

You can still protest. Check your value on the CAD website and file by the usual May 15 / 30-days-after-mailing rule for your situation. Some districts, like Bexar CAD in 2026, publicly reminded owners that a mailed notice is not required to protest.

Can renters protest?

If your lease requires you to pay the owner's property taxes, you may protest the value when the owner does not. The owner still gets the notice and must forward a copy for leased real property in the situations the Tax Code covers.

What happens if I miss the deadline?

You may lose the regular protest right for that year unless a late-filing rule applies (good cause, failure to receive notice, large value errors, clerical corrections, or an agreed joint motion). Pay undisputed taxes on time so you do not lose other remedies.

Will a protest automatically lower my tax bill?

Only if the ARB (or a later appeal) lowers the value or fixes the record, and only for that tax year. Tax rates are set by taxing units later. A lower appraisal is still the main lever most owners have in the spring.

Next step

A licensed local real estate agent can help you pull recent comparable sales, read your notice of appraised value in plain terms, and decide whether a protest file is worth building before the deadline for your county.

Sources: Texas Comptroller appraisal protests and appeals, Bexar CAD 2026 protest deadline notice, Comptroller Form 50-132.

Sellers of previously occupied single-family homes in Texas must use TREC's Seller's Disclosure Notice (Form 55-1) under Property Code Section 5.008. The current form is effective May 28, 2026. It covers known material facts and the physical condition of the property. It is not a substitute for a buyer's independent inspection.

If you are selling, fill it out carefully and honestly. If you are buying, read every page, ask follow-ups in writing, and still hire your own inspector. The notice tells you what the seller knows. It does not certify that the house is perfect.

What is the Texas Seller's Disclosure Notice?

Form 55-1 is the Texas Real Estate Commission's Seller's Disclosure Notice. TREC says sellers of previously occupied single-family residences must use it with a contract for the sale of real property entered into on or after September 1, 2023, and the May 28, 2026 edition is the current version on TREC's forms page.

Section 5.008 of the Texas Property Code is the statute behind the form. In short, it requires disclosure of material facts and condition items the seller knows about. The form walks through systems, structures, past problems, and other questions Texas expects sellers to answer.

Use the official TREC PDF, not a homemade checklist. Agents and brokers should pull the current form from trec.texas.gov so nobody relies on an outdated revision.

Who has to provide the notice?

The classic case is a seller of a previously occupied single-family home. New construction that has never been lived in, and some other transfers, can fall outside the usual Form 55-1 path. When in doubt, ask a Texas real estate attorney or your broker which disclosure rules apply to your exact deal.

The duty runs to known information. Sellers are not expected to invent engineering reports they never ordered. They are expected not to hide problems they already know about. "I never noticed" is a weak story if you lived with a stained ceiling for two years.

Buyers should treat a blank, incomplete or last-minute disclosure as a red flag. You can still negotiate repairs, credits or walk-away rights based on what the form and your inspection show, subject to your contract.

What should sellers watch when filling Form 55-1?

Answer every question. If you do not know, say you do not know rather than guessing. Attach explanations where the form asks for them.

Common trouble spots include:

• Past roof leaks, foundation movement or plumbing failures you repaired
• Insurance claims related to the property
• HOA lawsuits, fees or special assessments you know about
• Flooding, drainage or water intrusion history
• Systems that work "most of the time" but fail in heat or cold
• Work done without permits, if you know that happened

Update the notice if you learn something material after you first signed it and before closing. Keeping an old, incomplete form in the file after you discover a new issue is how disputes start.

Sellers sometimes worry that honesty will kill the deal. Incomplete disclosures create bigger problems later, including claims after closing. Price and repairs are negotiable. Surprises after the buyer moves in are not the kind of surprise you want.

What should buyers do with the notice?

Read it before you waive inspection rights. Compare the seller's answers with what you see on the tour and what your inspector finds.

If the seller discloses a foundation repair, get the engineering or warranty paperwork. If they disclose a prior insurance claim, ask what was fixed. If they mark "unknown" on something obvious, ask why.

The notice does not replace:

• A licensed home inspection
• Flood and fire risk checks for the address
• HOA document review when applicable
• Title review and survey questions your contract covers

For market timing and how much negotiating room buyers may have statewide this fall, see our Texas housing market fall 2026 piece. For ownership costs after you close, read how the Texas homestead exemption works on school taxes.

Contracts set deadlines for delivering the notice and for terminating based on disclosures or inspections. Miss those dates and your options shrink. Put the disclosure review on the same calendar as your option period.

FAQ

Is Form 55-1 required on every Texas home sale?

It is required for sellers of previously occupied single-family residences under Property Code Section 5.008, using TREC's Seller's Disclosure Notice. Some property types and never-occupied new homes follow different rules. Confirm with your broker or a Texas real estate attorney for your transaction.

When did the current form take effect?

TREC lists Form 55-1 with an effective date of May 28, 2026. Use that edition (or any later official replacement) from TREC's site rather than an old PDF saved on a laptop.

Does a seller's disclosure replace a home inspection?

No. The notice covers known material facts and condition. An inspector looks at the property independently. Buyers should do both.

What if the seller leaves sections blank?

Ask for a completed notice. Blank or vague answers are a reason to slow down, inspect carefully and negotiate. Your contract and Texas law control remedies if required disclosures are missing or wrong.

Can a seller say "unknown" on everything?

Sellers can answer "unknown" when that is true. Pattern "unknown" answers on items the seller lived with for years invite follow-up questions from buyers and agents. Honesty still beats a form that looks evasive.

Next step

A licensed local real estate agent can walk you through Form 55-1 line by line, help you gather repair records if you are selling, and help you line up inspections and contract deadlines if you are buying.

Sources: TREC Seller's Disclosure Notice (Form 55-1), TREC Form 55-1 PDF, Texas Property Code Section 5.008.

Texas buyers had more homes to choose from in the third quarter of 2026. Texas REALTORS® reported active listings up 2.8% statewide year over year, with months of inventory near 5.5. The statewide median sales price was $333,628, down 0.4% from Q3 2025, while most metros still saw price gains. Local metro context matters more than one statewide number.

Closed sales fell 2.4% statewide in the quarter, with big metros split: Austin-Round Rock-San Marcos and San Antonio-New Braunfels had more sales than a year earlier, while Dallas-Fort Worth-Arlington and Houston-Pasadena-The Woodlands had fewer. If you are shopping or listing this fall, start with your metro chart, not the headline alone.

What did Texas REALTORS® report for Q3 2026?

According to the 2026 Q3 Texas Quarterly Housing Report from Texas REALTORS®:

• Active listings rose 2.8% statewide versus Q3 2025
• Home availability increased in 18 of 26 metro areas
• Statewide median sales price was $333,628, down 0.4%
• Median prices rose in 15 of 26 metros, fell in 10, and were unchanged in one
• The four largest metros each saw median price decreases of 1.2% or less
• Statewide closed sales were down 2.4%
• Sales were up in 12 metros and down in 14
• Months of inventory moved from 5.4 to 5.5 compared with Q3 last year

Jennifer Wauhob, Chairman of Texas REALTORS®, put the statewide median in context: even though the Texas median dipped a little, prices went up in most metros, so one number is not the whole story.

The Texas Real Estate Research Center generally treats about four to five months of inventory as a balance between supply and demand. At 5.5 months statewide, buyers often get more time to decide than they did in the ultra-tight years, while sellers may need more patience and sharper pricing.

How did the largest metros diverge?

Texas REALTORS® noted that Austin-Round Rock-San Marcos and San Antonio-New Braunfels posted more closed sales in Q3 than a year earlier, while Dallas-Fort Worth-Arlington and Houston-Pasadena-The Woodlands posted fewer. That split alone is why a friend in Austin and a friend in Dallas can describe "the Texas market" in opposite ways and both be telling the truth about their metro.

Price changes in the big four were mild on a percentage basis (each down 1.2% or less on the median in that report). Elsewhere, Abilene, Texarkana and Beaumont-Port Arthur showed the largest median price increases in the statewide metro list, while many markets moved less than 5%. Inventory was tightest in places like Abilene, Amarillo and Odessa, and much higher in Eagle Pass, McAllen-Edinburg-Mission and Corpus Christi, per the same release.

Use those figures as published. They are quarterly metro snapshots, not a prediction for your street. Neighborhood condition, price band and property type still drive offers.

What should buyers do with more listings?

More options help only if you are ready to act when the right house shows up. Get a full pre-approval, know your monthly payment comfort including Texas property tax and insurance, and tour with a clear must-have list.

With inventory near a balanced 5.5 months statewide, you may have room to negotiate repairs or credits that vanished in hotter years. You still should not slow-walk a well-priced home in a popular neighborhood. Balanced statewide inventory does not mean every listing sits.

Before you waive inspection rights, read the Texas Seller's Disclosure Notice rules and budget for a thorough inspection. After you close, file for the homestead exemption so school taxes reflect the $140,000 school-district cut if you qualify.

What should sellers expect this fall?

More competing listings means pricing to recent closed sales, not to last year's peak ask. Homes that sit often take larger cuts later. Clean condition, complete disclosures and flexible showing access still matter.

If your notice of appraised value arrives high next spring, that is a separate process from MLS pricing. Keep the appraisal protest guide handy for May, and do not confuse CAD value with the price a buyer will pay tomorrow.

Wauhob's point about neighborhood rhythm is practical advice: your Texas REALTOR® (or any licensed local agent) knows how your block is trading this month. Statewide charts set the backdrop. Local comps set the list price.

How does earlier 2026 TRERC data fit?

The Texas Real Estate Research Center's August 2026 Texas Housing Insight described first-half momentum, with June closed sales up year over year and inventory expanding at a steadier pace than the prior year's surge. June active inventory sat near a 5.4-month supply in that report, close to the 5.5 months Texas REALTORS® later cited for Q3. Price weakness had been easing in several large markets even while Austin and San Antonio still showed softer year-over-year price readings in the June TRERC snapshot.

Taken together, mid-2026 through Q3 looks like a market with more choice for buyers and more need for metro-level reading, not a single statewide boom or bust story.

FAQ

What was the Texas median home price in Q3 2026?

Texas REALTORS® reported a statewide median sales price of $333,628 in Q3 2026, down 0.4% from Q3 2025. Most metros still saw higher medians than a year earlier.

How much did active listings rise?

Active listings rose 2.8% statewide year over year in Q3 2026, and availability increased in 18 of 26 metros covered in the Texas REALTORS® quarterly report.

Is 5.5 months of inventory a buyer's market?

The Texas Real Estate Research Center generally views about four to five months as balanced. At 5.5 months statewide, conditions often feel more buyer-friendly than a 2-month market, but tight pockets still exist. Check your metro's months of inventory in the same report.

Did all big Texas metros see fewer sales?

No. In Q3 2026, Austin-Round Rock-San Marcos and San Antonio-New Braunfels had more closed sales than a year earlier, while Dallas-Fort Worth-Arlington and Houston-Pasadena-The Woodlands had fewer, according to Texas REALTORS®.

Should I wait for prices to fall further before buying?

Statewide, the Q3 median was only slightly below a year earlier, and many metros were up. Waiting for a dramatic statewide drop is a bet, not a plan. A local agent can show you months of inventory and recent sales in the zip codes you actually want.

Next step

A licensed local real estate agent can pull live MLS comps for your neighborhood, explain how your metro's Q3 numbers compare with the statewide 2.8% listing gain and 5.5 months of inventory, and help you set a buy or sell strategy that fits this fall's market.

Sources: Texas REALTORS® Q3 2026 housing report release, TRERC Texas Housing Insight, August 2026.