Blog > Texas Homestead Exemption 2025, Explained
Texas Homestead Exemption 2025: The Ultimate Guide for Homeowners in Fort Bend, Richmond, Sugar Land & Katy
By Anja Drewes, Broker Anja Drewes Properties
If you own a home in Texas or you just purchased one the Homestead Exemption is one of the most powerful financial benefits available. It lowers your property taxes, protects you during rising markets, and provides long-term stability.
For 2025, several major updates take effect, and every Texas homeowner should understand how these changes work. Here's everything you need to know, explained clearly and in real, everyday language.
What Is the Texas Homestead Exemption?
Texas relies heavily on property taxes because we have no state income tax.
The Homestead Exemption helps balance that by reducing the taxable value of your primary residence which means you pay less in property taxes each year.
Here's a simple example:
If your home is valued at $400,000 and your homestead exemption removes $140,000 from taxation, you only pay school taxes on $260,000 instead of the full value.
That alone can save you hundreds or even thousands of dollars every year.
What's New for 2025?
In November 2025, Texas voters approved several updates to the homestead exemption amounts. These new amounts apply to the 2025 tax year.
The main changes are:
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The general homestead exemption for school district taxes is now $140,000, increased from $100,000.
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If you are 65 or older, or legally disabled, you receive an additional $60,000 exemption on top of the standard amount, giving you a minimum total exemption of $200,000 for school taxes.
The biggest win for most homeowners is the $140,000 standard exemption, because school taxes make up the largest part of your annual property tax bill in Texas.
Two Huge Long-Term Benefits Homeowners Often Miss
1. The 10% Appraisal Cap
Once your homestead exemption has been in place for an entire year, your taxable value cannot increase more than 10% per year, regardless of how high your market value climbs.
For example, if your home was taxed at $400,000 last year and the market value jumps to $460,000, your taxable value can only increase to $440,000. This protects you from sharp tax spikes in fast-growing areas like Richmond, Sugar Land, Katy, and Missouri City.
It's important to know that this cap begins on January 1 of the second year after your exemption is approved.
2. The Tax Freeze for Seniors and Disabled Homeowners
If you are 65 or older, or qualify as legally disabled, your school taxes freeze in the year you qualify.
This means your school tax amount will not go up as long as you live in that home even if property values rise or tax rates change.
Better yet, if you move to another home in Texas, your frozen tax amount can transfer to the new property.
How and When to Apply for the Homestead Exemption
When You Can Apply
You can apply as soon as you own and occupy the home as your primary residence.
A few years ago, homeowners had to wait until the following year, but that rule has changed you can now apply immediately once you move in.
Where to Apply
Applications must be submitted to your County Appraisal District (CAD) not the tax office.
Homeowners in Richmond, Sugar Land, and Katy will typically apply with the Fort Bend County Appraisal District, but neighboring counties follow the same process.
What You Need to Submit
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The completed Residence Homestead Exemption Application (Form 50-114)
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A copy of your Texas Driver's License or ID, showing the same address as the property
Once your exemption is approved, it stays in place and renews automatically each year.
New 5-Year Verification Rule (Starting 2025)
A new state law requires appraisal districts to verify eligibility for every homestead exemption at least once every five years.
This does not mean you must reapply from scratch.
Instead, you'll receive a verification letter or email asking you to confirm that the home is still your principal residence.
If you receive this notice, it's extremely important to respond promptly.
Ignoring it may result in your exemption being removed and a much higher tax bill until it's reinstated.
Final Thoughts
The Texas Homestead Exemption is one of the most effective tools homeowners have to reduce property taxes and protect themselves from rising values.
If you're buying a home, recently moved, or simply unsure whether you're receiving all your exemptions, I'm happy to help.
As a long-time Fort Bend broker, I guide my clients through every step of the filing process to ensure they get the savings they deserve.
Call or text me anytime I'm always here to help you protect your home and your investment.
Anja Drewes Neidhardt
Broker Anja Drewes Properties
Serving Richmond Sugar Land Katy Fort Bend County
www.anjadrewes.com
