The $140,000 Homestead Exemption: What North Texas Buyers Must File and When

By Rise Realty Texas · Reviewed by Kelly Bishop, Broker
Published October 20, 2026

As of October 2026, Texas school districts must exempt $140,000 of a home's value from school taxes, but the exemption is not automatic. A buyer who lives in the home as a principal residence on January 1 applies with the county appraisal district, at no cost, between January 1 and April 30.

How much is the Texas homestead exemption in 2026?

As of October 2026, the Texas Comptroller lists a mandatory $140,000 homestead exemption from school district taxes. Homeowners who are 65 or older, or disabled, receive an additional $60,000 school exemption. Texas voters approved the increase from $100,000 in November 2025.

The Comptroller's own example: a home appraised at $300,000 with the $140,000 exemption is taxed for school purposes as if it were worth $160,000. Cities, counties and other taxing units may also adopt an optional exemption of up to 20 percent of appraised value, not less than $5,000, so the full effect depends on which taxing units cover the address. Counties that levy farm-to-market or flood control taxes must grant a $3,000 exemption.

Who qualifies for a residence homestead exemption?

An applicant qualifies by holding an ownership interest in the home and using it as a principal residence. The application includes a statement that no other residence homestead exemption is claimed in Texas or anywhere else.

Collin CAD adds several practical points: the owner must be an individual, not a business entity, and must occupy the home as a principal residence on January 1 of the tax year. A homestead can include up to 20 acres if the owner uses the land residentially. A co-owner who holds a partial interest receives a share of the exemption in proportion to that interest.

When can a new buyer file for a homestead exemption?

Eligibility is measured on January 1, so a buyer who closes this fall would generally file between January 1 and April 30, 2027. Collin CAD states that early applications are not accepted. The Comptroller adds that an owner who acquires a home after January 1 may receive the exemption for part of that year, but only if the previous owner did not receive it.

Filing is a once-a-year window, not a closing-day task, so it helps to put the date on a calendar at closing. Buyers of newly built homes should also review how builder-district charges appear on the bill. Our guide to MUD vs. PID for new construction buyers in Anna and Celina covers that side of the tax statement.

How do I file a homestead exemption in Collin County?

File Form 50-114, the Residence Homestead Exemption Application, with Collin Central Appraisal District. Collin CAD publishes its own version of the form and accepts it by mail, in person, in its 24/7 drop box, or online through its Taxpayer Portal. Emailed applications are not accepted.

1. Download the application from the Collin CAD website or request one at 469.742.9200.
2. Include a copy of a Texas driver license or state ID. The address on the ID must match the property address.
3. Submit it to 250 Eldorado Pkwy, McKinney, TX 75069, or through the Taxpayer Portal.
4. Keep a copy. Collin CAD says there is no fee, and a single application is enough unless the chief appraiser later asks for a new one.

The district's office is open Monday through Friday, 8 a.m. to 4 p.m., according to Collin CAD.

How do I file a homestead exemption in Grayson County?

Applications go to Grayson Central Appraisal District at 512 N. Travis Street in Sherman. Grayson CAD lists a phone number of 903-893-9673 and an exemptions email, exemptions@graysonappraisal.org. Its taxpayer portal also offers online forms. For an over-65 exemption, the district asks for proof of age, such as a copy of a driver license or birth certificate.

One caution as of October 19, 2026: Grayson CAD's exemption page still lists a $100,000 general homestead figure and a $10,000 minimum over-65 reduction, which are older than the amounts on the Comptroller's current page. State law sets the school exemption, so confirm the current amounts with the district and check them on your tax statement.

Collin and Grayson filing details side by side

What if I miss the April 30 deadline?

Collin CAD says a late general homestead application may be filed up to two years from the date the taxes became delinquent for that tax year. Grayson CAD's page describes a shorter window: no later than one year after the taxes were paid or became delinquent, whichever comes first.

Because the two district pages differ, ask the district which window applies to your tax year, and treat late filing as a backup, not a plan. For over-65 and disabled-person exemptions, Collin CAD allows two years from the date a person first qualifies, so someone who turns 65 can apply for the year they qualified until their 67th birthday.

How do the over-65 and disabled exemptions work?

A homeowner who is 65 or older, or who meets the Social Security Administration's definition of disabled, receives an additional $60,000 school district exemption, per the Comptroller. Both appraisal districts say an owner cannot take the over-65 and disability exemptions in the same year and must choose one.

The over-65 exemption also carries a school tax ceiling, which keeps school taxes on that home from rising above the amount paid in the year the owner qualified, unless the owner adds improvements. Collin CAD says a surviving spouse who is 55 or older may keep the exemption. Homestead owners with an over-65 or disability exemption can also request quarterly payments, due January 31, March 31, May 31 and July 31, through the Grayson County tax office. A 100 percent disabled veteran may qualify for a total exemption on a residence homestead under a separate section of the Tax Code.

What happens to the exemption when I sell and buy another Texas home?

The exemption does not move on its own. Collin CAD says a new application is required whenever the property owner's residence homestead changes. A person may not receive a residence homestead exemption on more than one home in the same year, a rule Grayson CAD cites on its exemption removal form.

Grayson CAD publishes a tax ceiling transfer and exemption removal form for owners who sell a home with an exemption. Collin CAD says the percentage of an over-65 or disabled tax ceiling can transfer to a different home in Texas. Sellers planning a move can compare current county conditions in how much buyer leverage each North Texas county has right now.

When are property tax bills due, and who owes the tax in the year I buy?

Per the Grayson County tax office, bills are mailed in late October or early November and are due on receipt. January 31 is the last day to pay without penalty or interest, and unpaid taxes become delinquent on February 1. When January 31 falls on a weekend, the next business day counts as timely.

Denton County's tax office, citing Section 32.07 of the Texas Property Tax Code, notes that a person who owns or acquires property on or after January 1 is personally liable for that year's tax. Closing documents normally address how the year's taxes are split between buyer and seller, so ask the title company how the bill will be handled. Not receiving a statement does not change the due date, per the Denton County tax office.

Frequently asked questions about Texas homestead exemptions

How much is the Texas homestead exemption in 2026?

As of October 2026, the Texas Comptroller lists a mandatory $140,000 homestead exemption from school district taxes, plus an additional $60,000 school exemption for homeowners who are 65 or older or disabled. Cities, counties and other taxing units can add an optional exemption of up to 20 percent of appraised value, with a $5,000 minimum.

Is the homestead exemption automatic when I buy a house?

No. In most cases the owner must apply with the appraisal district in the county where the home is located, and the Comptroller's general deadline is before May 1. Collin CAD asks for a copy of a Texas driver license or state ID with an address that matches the property, and it does not charge a fee.

Can I file a homestead exemption before January 1 if I just closed on a home?

Collin CAD states that early applications are not accepted and that general applications are filed between January 1 and April 30. The Comptroller says an owner who acquires a home after January 1 may receive the exemption for part of that year if the previous owner did not receive it. Ask your appraisal district which rule applies to your closing date.

What if I miss the April 30 homestead exemption deadline?

Collin CAD says a late application may be filed up to two years from the date the taxes became delinquent for that tax year. Grayson CAD's page describes a shorter window of one year after the taxes were paid or became delinquent, whichever comes first, so confirm the current rule with the district before relying on a late filing.

Can I claim a homestead exemption on two houses?

No. Texas allows one residence homestead exemption per owner in a year, and the application requires a statement that no other residence homestead exemption is claimed in or outside Texas. Moving to a new home means filing a new application with the appraisal district that covers the new address.

When are Texas property taxes due, and is there a payment plan for homeowners 65 or older?

Grayson County's tax office says bills are mailed in late October or early November, and January 31 is the last day to pay without penalty or interest. Homestead owners with an over-65 or disability exemption may pay in installments due January 31, March 31, May 31 and July 31 if they request the plan by the first deadline.

Talk with a Rise Realty Texas agent before you close

Rise Realty Texas agents help buyers and sellers across Collin, Grayson and the other North Texas counties we serve. If you are buying in Sherman, Van Alstyne or anywhere in the communities we serve, call (888) 774-7315 and we will point you to the right county resources.

Since the buyer-representation rules changed this year, it also helps to read whether you need a buyer agreement to see homes in Texas before your first showing.

This article is general information about Texas real estate, current as of October 19, 2026. It isn't legal, tax or financial advice. Talk with a licensed professional about your situation. Rise Realty Texas LLC · TREC #9016637-BB.