Texas homestead guide

Just bought a home? Your homestead exemption checklist

The first tax year after a purchase is where most homestead money is lost. These are the rules buyers ask about most.

Reviewed · Law checked · Sources

Short answer

After buying a Texas home, file Form 50-114 with your appraisal district once you live there; the deadline is the first anniversary of your purchase. If you moved in by January 1 you qualify for that whole year. If you bought later, you get the general exemption for the rest of that year only if the seller did not have it (Tax Code §11.42(f)); otherwise it starts the next January 1. Update your driver license address first.

When your exemption starts

  • Owned and lived there on January 1: you qualify for the whole tax year.
  • Bought after January 1, seller had no homestead that year (for example, it was a rental or new construction): you may receive the general exemption for the rest of that year, starting when you qualify (§11.42(f); Comptroller guidance).
  • Bought after January 1 and the seller had a homestead: the seller’s exemption covers that year, and yours starts the next January 1. There is no monthly proration of the exemption itself.

Taxes for the year are usually split between buyer and seller at closing based on an estimate. That proration is a contract matter between you and the seller, separate from the exemption.

What to do in your first months

  1. Change the address on your Texas driver license or ID to the new home.
  2. File Form 50-114 with the appraisal district once you live there. You cannot keep a homestead on your previous home at the same time.
  3. If you are 65 or older, or disabled, check those boxes too. If you had a tax ceiling on your old Texas home, ask for a ceiling transfer certificate (§11.26(h)).
  4. Check your record online after a few weeks, and check the next tax statement.

Why taxes can jump the year after you buy

A homestead’s taxable value cannot rise more than 10% a year (§23.23). That protection belongs to the owner and starts again for a new owner: it applies from the tax year after the first year you qualify. So the seller’s capped value does not carry over, and the first bill in your name can reflect the full market value. See the 10% cap.

If you already missed a year

File now and ask for the late years. See late filing and refunds.

Not sure what your record shows? The free check reads your county record with you, applies the rules on this page, and shows any back-year refunds and yearly savings. If you are already covered, it says so.

Run the free 3-minute check

Common questions

Can I file a homestead exemption the same year I buy a house in Texas?

Yes. You may file once you live in the home. Whether it applies to that year depends on the January 1 rule and on whether the seller had a homestead exemption that year.

Does the seller’s homestead exemption transfer to me?

No. It stays with the seller for that tax year. You must file your own application.

Does my homestead exemption transfer when I move to a new home?

No. You must apply again for the new home. A 65+ or disability school tax ceiling can be transferred proportionally with a certificate from your old appraisal district (Tax Code §11.26(g), (h)).

Related guides

Sources

  1. Texas Tax Code, Chapter 11 (Taxable Property and Exemptions) — Texas Legislature
  2. Property Tax Exemptions — Texas Comptroller of Public Accounts — Texas Comptroller of Public Accounts
  3. Texas Tax Code, Chapter 23 (Appraisal Methods and Procedures) — §23.23 — Texas Legislature
  4. r/texas — Property Tax, Homestead Exemption: did I screw myself? — Reddit
  5. r/texas — Bought a house this year, don't understand what… — Reddit

ExemptBack is private self-help software, not a government service, law firm, or property tax consultant. This guide is general information about Texas law, not legal advice. Your appraisal district decides every application.