Texas homestead and property tax glossary

Definitions of Texas property tax terms: appraisal district, delinquency date, local option exemption, tax ceiling, 10% cap, Form 50-114, and more.

Reviewed November 7, 2026 · Law checked November 5, 2026

Residence homestead exemption: A reduction in the taxable value of the home you own and live in as your principal residence. In Texas, school districts must exempt $140,000 of a homestead’s value (Tax Code §11.13(b)), and other taxing units may add their own exemptions.
Appraisal district (CAD): The county office that appraises property and approves or denies exemption applications. You file your homestead application with the appraisal district in the county where the home is, not with the tax office or the state.
Chief appraiser: The official who runs an appraisal district and decides exemption applications, including late applications under Tax Code §11.431.
Tax assessor-collector: The office that sends tax bills and collects payments. After a late exemption is approved, it corrects the bill or sends the refund.
Taxing unit: Any government that levies property tax on your home, such as a school district (ISD), city, county, college district, hospital district, or MUD.
Appraised value: The value the appraisal district assigns to your home for the tax year, before exemptions are subtracted.
Taxable value: Appraised value (or the capped value for a homestead) minus your exemptions. Each taxing unit’s rate is applied to its own taxable value.
Tax rate (per $100): Texas tax rates are stated per $100 of taxable value. A rate of 1.0000 means $1.00 of tax for every $100 of taxable value.
Delinquency date: The date unpaid taxes become delinquent, usually February 1 of the year after the tax year (Tax Code §31.02). Late-filing windows are measured from this date.
Late application: A homestead application filed after the regular deadline. Texas allows it up to 2 years after the delinquency date (§11.431), or 5 years for certain disabled veteran exemptions (§11.439).
Local option percentage exemption: An optional exemption of up to 20% of a homestead’s appraised value that a city, county, school district, or special district may adopt. If the percentage works out to less than $5,000, the owner gets $5,000 (§11.13(n)).
Over-65 exemption: An additional $60,000 school district exemption for homeowners age 65 or older, from tax year 2025 (§11.13(c)). Other taxing units may add a local over-65 exemption of at least $3,000 (§11.13(d)).
Disability exemption: The same additional $60,000 school exemption for a homeowner who is disabled under the Social Security disability standard (§11.13(c)).
Tax ceiling (tax freeze): For homeowners with the over-65 or disability exemption, school district taxes on the homestead cannot rise above the amount set when they first qualified, except for new improvements (§11.26). Cities, counties, and junior colleges may adopt their own ceilings.
Homestead cap (10% cap): Once a home has a homestead exemption, its appraised value for taxes cannot rise more than 10% a year plus the value of new improvements (§23.23). The cap starts the year after the first year the home qualifies.
Disabled veteran exemption: A partial exemption from $5,000 to $12,000 of a property’s value based on the VA disability rating (§11.22), claimed on Form 50-135.
100% disabled veteran exemption: A total exemption of the residence homestead for a veteran the VA rates 100% disabled or individually unemployable from a service-connected disability (§11.131), claimed on Form 50-114.
Individual unemployability (IU / TDIU): A VA determination that pays a veteran at the 100% rate because service-connected disabilities prevent substantially gainful work. Texas treats it the same as a 100% rating for the §11.131 total exemption.
Form 50-114: The Texas Comptroller’s Application for Residence Homestead Exemption, used for the general, over-65, disability, and 100% disabled veteran homestead exemptions.
Form 50-135: The Texas Comptroller’s Disabled Veteran’s or Survivor’s Exemption Application, used for the partial disabled veteran exemption under §11.22.
Heir property: A home inherited without a recorded deed in the heir’s name. An heir who lives there can still apply for the homestead exemption with an ownership affidavit and supporting documents (§11.43(o)).
Five-year homestead review: Appraisal districts must review each homestead exemption at least once every five tax years (§11.43(h-1)), which is why some owners receive reapply letters.
Designation of homestead: A document filed with the county clerk that relates to protecting a home from forced sale for certain debts. It is not a property tax exemption application. Paid offers to file one are a frequent source of confusion.
Escrow: An account your mortgage servicer uses to pay property taxes and insurance. When an exemption lowers your tax bill, the servicer’s next escrow analysis can lower your monthly payment.