2026 Texas Property Taxes and Homestead Exemptions Guide

In 2026, Texas homeowners in San Antonio, Austin, and Killeen will see bigger homestead exemptions but also higher appraisals and shifting local tax rates. Understanding how exemptions, caps, and city decisions interact is essential if you want realistic all‑in ownership costs instead of escrow surprises. This overview explains statewide changes taking effect after the 2025 election plus what buyers should know about each market before they close.

Statewide Homestead Changes

Voter‑approved amendments increased the mandatory school homestead exemption and boosted additional relief for older and disabled homeowners starting with 2025 taxes.

• The general school-district homestead exemption rose from $100,000 to $140,000 of market value, permanently lowering taxable value for qualifying owners.
• Owners aged sixty five or older or with qualifying disabilities now receive an extra $60,000 school exemption on top of the general amount.
• New provisions also add targeted relief for business personal property and fire‑damaged homesteads beginning January first, twenty twenty six.

Local 2026 Tax Trends

San Antonio, Austin, and Killeen approach 2026 budgets differently, mixing stable rates, revenue growth from new construction, and overt rate hikes.

• Bexar County’s proposed two thousand twenty six budget holds the county tax rate level, while city revenues grow mainly from new property.
• Austin’s fiscal year twenty twenty five–twenty twenty six plan includes a notable property-tax revenue increase, driven by rising values and added construction.
• Killeen’s proposed rate moves from roughly sixty five point seven cents to about sixty eight point three cents per one hundred dollars of value.

Why Buyers Should Care

Loan approvals look at principal, interest, taxes, and insurance, so misjudging 2026 property taxes can derail a carefully planned budget.

• Homestead exemptions only apply after you apply and qualify, and homestead caps start the year after you first receive the exemption.
• Rapid appraisal growth in hot Austin neighborhoods and growing San Antonio suburbs can hit the ten percent cap for several years in a row.
• Using appraisal-district tools and tax estimators before you write offers helps avoid escrow shortages and payment shocks after your first renewal.

Tools and Next Steps

Homebuyers can combine state resources with local appraisal-district portals to forecast 2026 bills before committing to a specific street or price point.

• The Texas Comptroller explains homestead rules, exemption types, and application basics, including downloadable statewide forms and instructions.
• Travis, Bexar, and Bell appraisal districts each provide online property searches, exemption links, and sometimes basic tax calculators for planning.
• Cross‑checking these tools with lender estimates and your own spreadsheets produces a more honest view of long‑term ownership costs.

Key Takeaways

• Texas voters approved larger school-district homestead exemptions effective with 2025 taxes, which carry into 2026 and reduce many homeowners’ taxable values.
• Older and disabled owners now receive significantly higher extra school exemptions, shrinking or eliminating bills even when values and local rates rise.
• San Antonio’s 2026 tax picture leans on new-construction growth, Austin budgets for higher property-tax collections, and Killeen proposes a higher city rate.
• Homestead caps limit annual taxable-value growth to ten percent after the first qualified year, but they do not stop market appraisals from increasing.
• Appraisal districts in Bexar, Travis, and Bell counties provide online searches, exemption forms, and protest tools buyers should review before closing.
• Serious 2026 buyers should model payments with and without exemptions, then add protest strategies and long-range tax assumptions into affordability planning.

How Texas Property Taxes Work in 2026

Texas property taxes are ad valorem, meaning you are taxed based on your property’s appraised value multiplied by the combined rates of your school district, city, county, and special districts. The statewide homestead exemption, local-option exemptions, and the ten percent homestead cap all work by reducing the taxable portion of that value, not the tax rate itself. Understanding that distinction is essential when comparing San Antonio, Austin, and Killeen in 2026.

• Ad valorem structure: Each taxing unit sets its own rate, and your total bill is the sum of those rates applied to taxable value.
• Appraisal versus taxes: The appraisal district estimates market value, while tax offices calculate bills after exemptions and adopted tax rates are applied.
• Homestead impact: A residence homestead lowers the taxable value for school and, often, city or county taxes when properly claimed.
• Ten percent cap: The homestead cap limits taxable-value growth to ten percent per year after the first qualified year, excluding new improvements.
• State guidance: The Texas Comptroller’s property-tax exemption pages explain statewide rules and link to forms and frequently asked questions for homeowners. Texas Comptroller exemptions overview

Statewide Homestead Exemptions and 2025–2026 Changes

Voters approved several constitutional amendments in November 2025 that reshape homestead protections going into the 2026 tax year. The general school-district homestead exemption climbed from $100,000 to $140,000, immediately reducing taxable value for qualifying owners across Texas. At the same time, the extra exemption for older or disabled owners jumped dramatically, and new relief provisions were added for business personal property and homes rebuilt after fire damage.

Exemption type	Amount before 2025	Amount for 2025 and 2026	Who benefits most
General school homestead	$100,000 of market value	$140,000 of market value	Owner-occupants in all Texas school districts
Additional over-65 or disabled school homestead	$10,000 of market value	$60,000 of market value	Homeowners aged 65+ or with qualifying disabilities
Business personal property	Smaller existing thresholds	Up to $125,000 of qualified property	Small and midsize businesses with equipment or furnishings
Disaster-related improvements	No specific statewide exemption	Temporary relief for fire-destroyed homesteads	Owners rebuilding after a qualifying fire event

• School tax focus: The biggest changes apply to school-district taxes, which typically make up the largest portion of a Texas property-tax bill.
• Stacked exemptions: Older or disabled owners can combine the general homestead and additional exemption for up to $200,000 in school-district value reductions.
• Personal property relief: The new business personal property exemption helps small businesses by removing a substantial portion of equipment from local taxation.
• Disaster support: Fire-damaged homesteads may qualify for temporary exemptions on improvements while owners rebuild, softening the financial hit in recovery years.
• Formal application: Most exemptions require submitting a homestead form to your appraisal district, not your lender or the Comptroller. Texas Form 50-114 homestead application

Extra Protection for Seniors, Disabled Owners, and Certain Veterans

Texas property-tax rules add a second layer of protection for homeowners who are aged sixty five or older, have a qualifying disability, or meet specific Veteran categories. In addition to the larger school exemptions, many taxing units offer local-option over-65 or disability exemptions and, in some cases, tax ceilings that freeze school taxes once you qualify. Certain disabled Veterans can receive substantial or even full exemptions on their residence homestead.

• Over-65 and disabled exemptions: Extra value reductions shrink school taxes and often apply to city or county taxes when local governments adopt their own exemptions.
• School tax ceilings: Once an over-65 or disabled homeowner qualifies, many school taxes are effectively frozen, rising only when there are substantial improvements.
• Disabled Veteran relief: Texas law allows partial or full exemptions for qualifying disabled Veterans and some surviving spouses on their primary residence.
• Local rules vary: Each city, county, and school district may set different additional exemptions, so savings differ between San Antonio, Austin, and Killeen.
• Legal guidance: For plain-language explanations of exemptions, caps, and delinquency issues, resources like TexasLawHelp provide helpful overviews. TexasLawHelp homestead guide

Local 2026 Property-Tax Picture: San Antonio, Austin, and Killeen

The new statewide homestead rules apply everywhere, but the way they feel in your payment depends heavily on each city’s tax-rate decisions and appraisal trends. San Antonio’s 2026 planning leans on stable county rates and new construction to support revenue. Austin’s budget assumes a stronger property-tax revenue increase, reflecting rapid value growth. Killeen’s proposed higher rate, above its no-new-revenue benchmark, points toward noticeable 2026 bill increases if adopted.

City	County / CAD	2026 trend snapshot	Buyer takeaway
San Antonio	Bexar Appraisal District	County keeps the rate level; city revenue grows with new construction and value changes.	Homestead relief offsets some growth, but suburban appreciation can still increase tax bills.
Austin	Travis Central Appraisal District	Budget targets higher property-tax collections, aided by strong value increases and added properties.	Expect homestead savings but plan for continued appraisal pressure, especially near job centers.
Killeen	Bell County Appraisal District	Proposed rate rises above the no-new-revenue benchmark, pointing toward higher city tax bills.	Lower home prices help, but taxes may rise faster than in past years without exemptions.

• Check combined rates: Your real bill reflects school, city, county, and special-district rates together, not just one headline number from the news.
• Neighborhood patterns: Fast-growing areas with new amenities often see sharper appraisal increases, even when tax rates stay level or fall slightly.
• Homestead timing: Buying late in the year may mean your first bill is based on prior owner exemptions, then adjusted after your homestead is approved.
• Military influence: Around Killeen and San Antonio, base-related demand can stabilize values, but it does not shield you from local rate changes.

Using Appraisal District Tools to Estimate 2026 Taxes

Appraisal-district websites are your best front-line tools for estimating 2026 property taxes before you buy. Each district publishes current and historical appraised values, exemption status, and, in many cases, tax estimator links. Buyers should pull several recent sales in their target neighborhood, compare market and taxable values, and then model what the tax bill would look like with the new 2026 homestead exemptions applied after closing.

• Travis Central Appraisal District: Austin buyers can search properties, see current exemptions, and review reappraisal plans through the Travis CAD website. Travis CAD homestead exemptions
• Bexar Appraisal District: San Antonio buyers can use Bexar CAD’s online portal to file exemptions, view values, and submit protests electronically. Bexar CAD online services
• Bell County Appraisal District: Killeen buyers can review homestead and over-65 exemptions plus tax-bill breakdowns through Bell CAD’s site. Bell CAD property-tax information
• State homestead form: Regardless of county, Form 50-114 is the standard application for most residence homestead exemptions in Texas. Residence Homestead Exemption form
• Appeal and protest: Many districts let you start value protests online, upload evidence, and track informal or formal hearings through your account dashboard.

How to Plan Your 2026 Property-Tax Budget as a Buyer

Building a realistic budget for 2026 means going beyond generic “tax included” mortgage estimates. Buyers in San Antonio, Austin, and Killeen should model scenarios using likely 2026 taxable values, not just 2024 or 2025 numbers. This is especially important in fast-appreciating Austin zones and Killeen areas facing higher city rates. Combining exemption savings, homestead caps, and conservative assumptions about future appraisal growth gives you a more reliable long-term payment target.

• Model with and without exemptions: Estimate your payment for year one without homestead and year two after exemptions and caps kick in.
• Use conservative appreciation: Assume several years of appraisal increases near the ten percent cap for competitive neighborhoods, then see if payments still work.
• Test different cities: Compare the same price point in San Antonio, Austin, and Killeen to see how taxes shift total monthly cost.
• Coordinate with escrow: Ask your lender how they set tax escrows and when they perform annual escrow analyses and payment adjustments.
• Layer calculators: Pair property-tax estimates with principal, interest, insurance, and HOA dues to build a full-cost picture before making offers.

The Bottom Line

Texas property taxes in 2026 are a tradeoff: bigger homestead exemptions and stronger protections on one side, rapid appraisal growth and shifting local rates on the other. If you are buying in San Antonio, Austin, or Killeen, treat property taxes as a core part of affordability, not a line item you glance at once. Use the Comptroller’s guidance, county appraisal tools, and conservative assumptions so your first full tax cycle feels expected, not like an unwelcome surprise. This is general information, not tax or legal advice—confirm specifics with your appraisal district or qualified professional.

References Used

• Texas Comptroller – Property Tax Exemptions: Statewide overview of residence homestead, over-65, disabled, and disabled Veteran exemptions plus related forms. Texas Comptroller exemptions page
• Texas Comptroller – Residence Homestead Form 50-114: Standard application form for Texas homestead exemptions used by appraisal districts statewide. Residence Homestead Exemption (Form 50-114)
• Travis Central Appraisal District: Local guidance on homestead-exemption eligibility, reappraisal plans, and homestead reverification practices in Travis County. Travis CAD homestead information
• Bexar Appraisal District: Online portal for filing homestead exemptions, submitting protests, and reviewing property details in the San Antonio area. Bexar CAD online portal
• Bell County Appraisal District: Exemption explanations and tax-bill resources serving Killeen and surrounding areas in Bell County. Bell CAD official website
• TexasLawHelp – Property Taxes and Homestead Exemptions: Plain-language overview of homestead rules, delinquency, and relief options for Texas homeowners. TexasLawHelp property-tax guide

Frequently Asked Questions

How much can the 2026 Texas homestead exemption save me?

The exact savings depend on your home’s value and local school-district rate. With a $140,000 school homestead exemption, many owners effectively remove five figures of taxable value, and older or disabled homeowners can exempt up to $200,000. Multiply the exempted value by your school tax rate to approximate savings.

How does the ten percent Texas homestead cap work after I buy?

Once your residence homestead is approved, the taxable value for most purposes cannot increase more than ten percent per year, plus the value of new improvements. That cap starts the year after you first qualify. Market value can still jump higher, but your capped taxable value controls tax calculations unless you lose the exemption.

When should I apply for a homestead exemption after purchasing?

You can apply for a Texas residence homestead exemption as soon as you own and occupy the home as your primary residence. Most appraisal districts accept applications beginning January first and prefer filings by April thirtieth. If you miss the window, you may still retroactively claim up to two years of exemptions in some cases.

Do over-65 homeowners still see property-tax increases?

Yes, but often less than other owners. The extra over-65 school exemption and many school-tax ceilings can keep that portion of the bill steady once you qualify. However, city, county, or special-district taxes may still rise if those entities increase rates or if new improvements raise your taxable value beyond exemptions.

How do I estimate 2026 property taxes on a San Antonio home?

Start at the Bexar Appraisal District website to review recent appraised values and any existing exemptions on similar homes. Then look up combined 2026 tax rates for the school district, city, county, and special districts. Apply the new homestead amounts to reduce the taxable value and multiply by the combined rate for a rough estimate.

What’s different about Austin property taxes in 2026?

Austin’s property-tax picture combines strong appraisal growth with a budget that anticipates higher collections. Homestead exemptions still reduce school taxes, and Travis County offers additional percentage exemptions and over-65 relief in many cases. Buyers should pay special attention to how quickly taxable values have been rising in their chosen neighborhood, even after exemptions.

How does Killeen’s 2026 tax rate affect my budget?

Killeen’s proposed 2026 city rate sits above the no-new-revenue rate, meaning city tax collections will likely increase if adopted. Lower average home prices help, but rising appraisals and the higher city rate can still move payments up. Applying for homestead and over-65 exemptions where eligible is critical to keep long-term costs manageable.

What happens to property taxes if my home is damaged by fire?

Under recent changes, qualifying homesteads completely destroyed by fire may receive temporary exemptions on improvements while owners rebuild. You must work with your appraisal district to document the damage and apply for the relief. The exemption reduces taxable value on the destroyed structure, though land value and other components may still be taxed.

How do homestead exemptions interact with my mortgage escrow?

Your lender estimates property taxes when setting your escrow payment, then adjusts it after receiving annual tax bills. If your homestead exemption is approved after closing, your first full year’s bill may drop, and escrow analyses can lower future payments. Conversely, underestimating taxes may trigger escrow shortages and unexpected payment increases later.

Should I hire help to protest my property-tax appraisal?

It depends on your comfort with data and deadlines. Many owners successfully protest on their own using appraisal-district sales data and comparable listings. Others hire tax consultants who charge flat fees or contingency percentages. Either way, watch protest deadlines closely and bring clear evidence if you believe your appraised value exceeds market value.