Who can file for a homestead exemption?
You can file if you own the home and it’s your principal residence. On the state form you also confirm you’re not claiming a homestead on any other property.
If you just bought, you may not have to wait until next January. Since January 1, 2022, you can claim the exemption starting the date you own and live in the home, as long as the previous owner didn’t claim a homestead on it that year. If the seller did have one, you’ll usually start the next tax year. If you’re not sure which applies to you, ask the appraisal district. They’re the ones who decide.
Which appraisal district do I file with?
The one for the county the house is in. Not your city. Not your mailing address.
- Tarrant County: the Tarrant Appraisal District. TAD has an online application on tad.org (opens in new tab). You can also mail, drop off, or email the state form, Form 50-114.
- Parker County: the Parker County Appraisal District in Weatherford, at parkercad.org (opens in new tab). Same state form, 50-114.
This trips people up on the west side. Some Fort Worth addresses sit in Parker County. If your house is on the Parker County side, you file with Parker CAD, even if your mail says Fort Worth. Look your property up on the appraisal district’s site. If it shows up there, that’s your district.
What do I need to file?
Mainly a copy of your Texas driver’s license or state ID card, and the address on it has to match the home. TAD is specific about this. It has to be from Texas DPS. A license to carry or an election ID doesn’t count.
So update the address on your license first. That’s the step people skip, and it holds up the application.
If you qualify for an over-65, disability, or disabled veteran exemption, there are extra documents. The appraisal district lists what they need for each one.
There’s no fee to file. You can do it yourself.
When is the deadline?
The general deadline is before May 1 of the year you’re applying for, so April 30. If you miss it, the state form allows a late application up to two years after the deadline. Don’t plan on that. File once you’ve moved in and fixed your license.
How much does the homestead exemption save?
The exemption takes value off your home before the tax rate is applied. For school district taxes, state law requires a $140,000 homestead exemption. That’s the figure the Texas Comptroller lists as of October 2026. Other taxing units, like the county or city, can choose to add their own exemption on top of that, up to 20% of the home’s value.
The Comptroller gives a simple example. A home appraised at $300,000 with the $140,000 school exemption pays school taxes as if it were worth $160,000.
If you’re 65 or older or disabled, there’s an additional school exemption and a school tax ceiling. The amounts have changed in recent years, so check the current numbers with your appraisal district.
What you actually save depends on your tax rates, and those are set every year by each taxing unit. I won’t guess at yours. Your appraisal notice and your tax bill show the exemptions on your account.
What is the 10% homestead cap?
Once you have the exemption, the appraised value you’re taxed on can’t go up more than 10% a year. TAD calls it the homestead cap. It can go up more than 10% if you add something, like a new room, more land, or a big renovation.
Your market value can still rise faster than that. The cap limits the taxable value, not the market. That’s one reason two similar houses on the same street can have different tax bills.
What about acreage in Parker County?
A residence homestead covers the house and the land it sits on, up to 20 acres. If you’re on a bigger tract, the acres over 20 don’t get the homestead exemption.
Some rural land qualifies for agricultural or open-space appraisal instead. That’s a separate application with its own rules. If it matters to your budget, call Parker CAD before you buy, not after. I wrote more about land in buying land and building in Parker County.
Does the homestead exemption change my mortgage payment?
If you have an escrow account, yes. Usually down.
Your lender collects your property taxes monthly and pays the bill for you. When a loan is set up, the tax estimate is based on what’s known at closing. That’s often the prior year’s bill. If you bought a new build or the seller had no exemption, that estimate can run high compared with what you’ll pay once your exemption is in place.
Your servicer reviews the escrow account once a year. Under federal rules, if the review shows a surplus of $50 or more, they have to refund it within 30 days. After that, your monthly escrow amount is reset to match the lower bill.
It works the other way too. If you don’t file, your taxes stay higher, and so does your payment. More on that in why your mortgage payment went up.
Do I have to reapply every year?
No. Once it’s granted, you don’t reapply each year. You do need to send a new application if the chief appraiser asks for one. If that letter comes, don’t ignore it.
If you move, file a new application for the new house. The state form also says to notify the chief appraiser for the old home in writing, before May 1 of the next year, that your right to the exemption there ended.
What I’d do the week you move in
- Update the address on your driver’s license with Texas DPS.
- File your homestead exemption with TAD or Parker CAD, depending on the county.
- Save the confirmation number.
- When you turn 65, check that the over-65 exemption shows up on your account. The state form says you may not have to apply if the appraisal district already has your birthdate. If you qualify for another exemption later, apply for that one.
Questions about the exemption itself go to your appraisal district. They decide who qualifies. I’m not a tax advisor, so for how it fits your own taxes, check with your CPA. For how it affects your loan or escrow, call me at 817-873-6288.