Texas just handed homeowners one of the most significant property tax relief packages in recent memory - and if you haven't reviewed your exemptions since last year, you may be leaving real money on the table.

Texas voters approved Propositions 11 and 13 in November 2025, substantially raising the homestead and over-65 exemptions for the 2025 tax year. Whether you own a primary residence in the Hill Country, a lakefront estate on Lake Austin, or a luxury home anywhere in Travis County, these changes deserve your attention before your tax bill is finalized.

Below is a plain-language breakdown of every major exemption available to Texas homeowners - including what's new, what's unchanged, and what you should do right now.

Homestead Exemption

The homestead exemption is the cornerstone of Texas property tax savings, and it just got significantly more valuable. Every Texas homeowner should have this filed on their primary residence - if you don't, it's the first call you should make.

Additional benefits include:

• A 10% cap on annual assessed value increases - regardless of market appreciation
• Additional local exemptions that vary by county (Travis CAD publishes a current list)
• Protection from forced sale of your primary residence in most circumstances

Over-65 & Disability Exemptions

This is where the 2025 changes are most dramatic. If you or a household member are 65 or older - or qualify under a disability determination from the Social Security Administration - the new numbers are substantial.

Additional benefits for this group:

• Possible deferral of tax payments for as long as you occupy the residence (interest accrues at 5% annually)
• Ability to transfer your tax ceiling to a new Texas homestead if you move
• A surviving spouse age 55 or older may continue to hold these exemptions if the qualifying spouse passes

Veterans & Surviving Spouse Exemptions

Texas has long offered some of the most generous veteran property tax benefits in the country. These exemptions were not changed by the 2025 legislation - they remain in effect as follows:

• Partial exemptions for veterans with service-connected disabilities, scaled to VA disability rating (10–90%)
• 100% property tax exemption on the homestead for veterans rated 100% disabled or individually unemployable by the VA
• 100% exemption for unmarried surviving spouses of service members killed or fatally injured in the line of duty
• Surviving spouse of a 100% disabled veteran may continue or transfer the exemption to a subsequent homestead

Applications use Form 50-135 (disabled veteran exemption) or Form 50-114 (surviving spouse of service member). Contact your county appraisal district to confirm which forms and documentation apply to your specific situation.

Agricultural & Wildlife Management Exemptions

For luxury properties with acreage - particularly those along the Hill Country corridors, the Highland Lakes, or the Texas countryside - an agricultural or wildlife management valuation can be one of the most powerful tax reduction tools available.

• Property is taxed on productivity value rather than market value - a distinction that can reduce assessed value by tens of thousands of dollars annually on larger tracts
• Wildlife management is a qualifying use in Texas and does not require livestock or active farming
• Must meet specific use requirements, acreage minimums, and application deadlines with your county appraisal district
• Requires an annual wildlife management plan and activity log to maintain the exemption

2025 Exemption Summary

All figures reflect the 2025 tax year. Exemption amounts apply to school district taxes unless otherwise noted. Local entity exemptions (county, city, MUD) vary. Source: Texas Comptroller, Ballotpedia, Travis CAD.