Homestead Tax Tips for Texas Homeowners in 2026

By Justin Croft

Justin Croft has a passion for buying and selling residential real estate that is contagious. He is a skilled negotiator and problem solver who thrives on going above and beyond for his clients.

Let’s be honest. When was the last time you checked your property tax statement beyond just the total due? If you’re like most Texas homeowners, the answer is probably “never.” But what if I told you that a single piece of paperwork (one you likely filed years ago and forgot about) could be the reason you’re overpaying by thousands?

I’m talking about your Homestead Exemption, and it’s not just another bureaucratic form. It’s your secret shield against runaway property taxes and your ticket to automatic savings every single year. At Croft Real Estate Group, we’ve helped countless homeowners discover they were missing this critical protection, or worse, had it filed incorrectly.

Think of this as your five-minute financial health check. We’re going to break down exactly what the Homestead Exemption does, why you can’t afford to ignore it, and how to make sure yours is locked in so you can stop leaving money on the table.

In Texas, the Principal Residence Exemption (your Homestead Exemption) does two vital things for you:

1. It caps your annual tax increase. The exemption limits the yearly taxable value increase on your primary residence. Without this cap, your property taxes could jump significantly more than expected, especially as home values continue to rise. This protection is your first line of defense against an unpredictable tax bill.

2. It adds direct savings to your bill. The exemption reduces the taxable value of your home, which translates to immediate savings on your annual property tax statement. It’s not a one-time credit; it’s an ongoing reduction for as long as you own and live in the home.

You might qualify for even more. In addition to the standard homestead savings, Texas offers property tax exemptions for specific situations. For example, if you are a disabled veteran, you may be eligible for a significant exemption. Homeowners over 65 may also qualify for extra deductions. Many people are eligible for these and never file, leaving money on the table each year.

How to check your filing in 5 minutes. The process is straightforward. Visit your county’s treasurer or equalization department website (for example, Harris County Appraisal District or Travis Central Appraisal District). Look for a section on “Property Tax Exemptions” or “Principal Residence Exemption.” You should be able to search by your address or parcel number to see exactly which exemptions are currently applied to your property.

For current homeowners, this is a simple audit of your most significant investment. Ensuring your homestead is correctly filed guards against future financial strain. For recent buyers who just purchased a home, you must file a new homestead application; it does not transfer automatically. For seniors, veterans, or those with disabilities, a quick check could uncover substantial additional savings.

Don’t assume your filing is complete. A few minutes of verification can protect you from unexpected tax hikes and ensure you’re getting every dollar of savings you deserve.

If you’re not sure where to look or need help understanding what you qualify for, just reach out. I’m always happy to help you navigate this. Call 734-213-7200, email justin@croftrealestategroup.com, or visit croftrealestategroup.com to connect with the Croft Real Estate Group team. Let’s make sure you’re not overpaying. Your home is your biggest investment. Make sure the system is working for you, not against you.