Texas · Tax Code §§11.13, 11.43, 23.23Texas homestead exemption after buying: apply within a year
A Texas buyer who makes the home a residence homestead gets a $140,000 exemption from school district taxes and $3,000 from certain county taxes (Tax Code §11.13). Someone who buys after January 1 can receive it for the rest of that tax year (§11.42(f)) by applying to the appraisal district before the first anniversary of the purchase (§11.43(d)); once allowed it need not be refiled until ownership or qualification changes (§11.43(c)). The 10% annual cap on the homestead's appraised value, plus new improvements, takes effect on January 1 of the year after the new owner qualifies (§23.23).
What changes and why
School exemption
$140,000 of appraised value; $60,000 more if 65 or older or disabled (§11.13(b), (c)).
County
$3,000 of assessed value for certain county purposes (§11.13(a)).
Year of purchase
Available for the part of the year after you acquire and qualify (§11.42(f)).
Deadline
Before the first anniversary of the acquisition date (§11.43(d)).
10% cap
Appraised value can rise at most 10% a year plus new improvements, from the year after qualifying (§23.23).
What the buyer files and when
- Apply to the appraisal district where the home is located before the first anniversary of the purchase.
- Keep the application once allowed: it carries forward until ownership or qualification changes (§11.43(c)).
- Expect the seller's exemption to drop off for the part of the year after closing.
- Check the escrow analysis after the first full year with your own exemption.
The budgeting trap
- The seller's tax bill reflects the seller's exemptions and capped value – not what the buyer will pay.
- Escrow for taxes is set from that bill, so the payment can jump after the first year.
- Exemptions do not move with the deed: the buyer has to apply.
Questions buyers ask
How much is the Texas homestead exemption?
$140,000 off the appraised value for school district taxes, plus $3,000 for certain county taxes (Tax Code §11.13).
Can I get the Texas homestead exemption the year I buy?
Yes. A buyer after January 1 can receive it for the rest of that year (§11.42(f)), applying before the first anniversary of the purchase.
When does the 10% homestead cap start?
On January 1 of the year after the new owner qualifies for the homestead exemption (§23.23(c), (c-1)).
Related guides
Add the buyer's exemption filing to the post-closing checklist as a task with an owner and due date in ClosingCode, so the reminder goes out before the deadline.
Start free trialSource: Texas Tax Code §§11.13, 11.42, 11.43 and 23.23 (statutes.capitol.texas.gov, read October 25, 2026).
General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage.