Texas Homestead Exemption: How New Homeowners in North DFW Save Up to $4,500 a Year
HOW MUCH DOES THE TEXAS HOMESTEAD EXEMPTION ACTUALLY SAVE YOU?
Texas's homestead exemption removes $140,000 from your home's appraised value for school district tax purposes. At a typical North DFW school tax rate of around 1.0–1.2%, that single exemption saves most homeowners $1,400–$1,680 per year on school taxes alone. Stack in county, city, and special district exemptions and your total annual savings typically land between $2,000 and $4,500, depending on your home value and where you live. The deadline to file is April 30 each year — and it costs you nothing to apply.
By Italia Dyer | June 11, 2026
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One of the first things I tell every buyer after we close is this: file your homestead exemption. Today if possible, this week at the latest. Because every year I meet new homeowners in Celina, Aubrey, Frisco, and Little Elm who have been paying full property taxes for a year or two because nobody told them this form existed.
It's one of the easiest things you can do to reduce your property tax bill — and unlike most things in real estate, it's completely free.
WHAT THE HOMESTEAD EXEMPTION ACTUALLY DOES
Texas property taxes are calculated on your home's appraised value. The homestead exemption works by reducing the value that's taxable — specifically, it removes $140,000 from your assessed value for school district purposes.
Here's what that looks like in real numbers:
- Home appraised at $500,000 without exemption: taxable school value = $500,000
- Home appraised at $500,000 with homestead exemption: taxable school value = $360,000
- School tax rate of 1.0%: savings of $1,400/year just from the school exemption
But the school district exemption isn't the only one you get. Most Texas counties and cities also offer additional homestead exemptions — typically a flat dollar amount or percentage reduction applied to your county and city taxable values. In Denton County, for example, the county offers an additional 10% homestead exemption on top of the school district savings. Stack it all together and most North DFW homeowners in the $450,000–$700,000 range save $2,000–$4,500 per year compared to what they'd pay without the exemption.
That's real money. And it recurs every year, automatically, once you've filed.
WHO QUALIFIES AND WHAT YOU NEED TO KNOW BEFORE FILING
Eligibility is straightforward. To claim the homestead exemption, you must:
- Own the home — you're on the deed or title
- Occupy it as your primary residence — this must be your main home, not a rental or investment property
- Have lived there on January 1 of the tax year you're claiming
That last point is the one that trips up new buyers. The key date is January 1. If you closed on your home before January 1, 2026, you're eligible to file for the 2026 exemption by April 30, 2026. If you closed after January 1, 2026, your first eligible year is 2027 — and you'll need to file by April 30 of that year.
You can only claim one homestead anywhere in Texas at a time. If you own other properties, the exemption applies only to your principal residence.
HOW TO FILE — STEP BY STEP FOR NORTH DFW HOMEOWNERS
The application goes to the appraisal district for your county. Most homes in North DFW fall into one of two counties:
COLLIN COUNTY (Frisco, Celina, Plano, Allen, McKinney, Prosper)
- File with the Collin Central Appraisal District
- Website: collincad.org
- Phone: (469) 742-9200
- Mail to: 250 W. Eldorado Pkwy, McKinney, TX 75069
DENTON COUNTY (Aubrey, Little Elm, Flower Mound, Lewisville, Denton, Corinth)
- File with the Denton Central Appraisal District
- Website: dentoncad.com
- Phone: (940) 349-3800
Some communities sit on county lines. Frisco, for example, spans both Collin and Denton County depending on which part of the city your home is in. When in doubt, check which county your property tax bill comes from — that's the appraisal district you file with.
Documents you'll need:
- A Texas driver's license or state ID showing your homestead address
- Proof of ownership — your deed, closing statement, or a document showing you hold title
If your ID doesn't yet show your new address (common when you just moved), bring supporting documents: voter registration, vehicle registration, a utility bill, or your closing disclosure.
Both Collin CAD and Denton CAD allow online filing, mail-in applications, or in-person drop-off. The form is short — most homeowners complete it in under 10 minutes.
The deadline is April 30 each year for the current tax year's exemption. If you miss it, you'll need to wait until the next filing window. Don't wait.
WHAT HAPPENS AFTER YOU FILE
After you submit, the appraisal district will process your application and notify you if it's approved. You can also log into your property record on the appraisal district's website and verify the exemption is showing on your account — look for "HS" or "Homestead" in your exemption listings.
If your mortgage payment includes an escrow account for property taxes, your servicer should adjust your monthly payment after the exemption is reflected in your tax bill. This adjustment doesn't happen overnight — the tax bill is issued in the fall, and escrow adjustments typically happen with your annual escrow review — but the savings add up.
One more thing: once you've filed and been approved, you don't have to refile every year. The exemption stays on your property as long as it remains your primary residence. If you move, sell, or change the home's use, you'll lose the exemption — but as long as you're living there, it's automatic going forward.
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FREQUENTLY ASKED QUESTIONS
How much does the Texas homestead exemption save you?
The $140,000 school district exemption saves most North DFW homeowners roughly $1,200–$1,700 per year on school taxes alone. When combined with county and city exemptions, total annual savings typically range from $2,000 to $4,500 depending on your home value and local tax rates.
When is the deadline to file the homestead exemption in Texas?
The standard filing window is January 1 through April 30 each year. You must apply by April 30 to have the exemption applied to that year's tax bill.
Can I file the homestead exemption if I just closed on my home?
Yes, if you closed and moved in before January 1 of the current tax year. If you closed after January 1, you typically won't qualify until next year's exemption cycle. New homeowners who closed in 2025 and lived in the home on January 1, 2026 should file by April 30, 2026.
Where do I file for homes in Celina, Aubrey, or Frisco?
Celina and Frisco are generally in Collin County — file with the Collin Central Appraisal District at collincad.org. Aubrey and Little Elm are in Denton County — file with the Denton Central Appraisal District at dentoncad.com. Some communities straddle county lines, so verify which county your property tax bill comes from.
Do I have to refile the homestead exemption every year?
No. Once approved, the exemption stays on your property as long as you own and live there as your primary residence. You only need to refile if you move or if the appraisal district sends a notice requiring renewal.
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The homestead exemption is one of those post-closing tasks that can slip through the cracks — especially when you're busy moving in, setting up utilities, and settling into a new home. But it's worth a few minutes of your time. For most homeowners in North DFW, it's $2,000–$4,500 back in your pocket every year.
If you recently purchased a home in Celina, Aubrey, Frisco, or anywhere in Denton or Collin County and aren't sure whether you've filed, reach out. This is one of the things I walk every client through — even long after closing. You can grab a time at https://calendly.com/thedyergroup/schedule-a-showing, or if you're thinking about buying in North DFW and want to understand the full picture — including what taxes look like after your homestead exemption — I'm happy to walk you through it.
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About Italia Dyer
Italia Dyer is a top real estate agent and bilingual (Spanish/English) REALTOR®, founder of The Dyer Group at eXp Realty, serving buyers and sellers across the Dallas–Fort Worth metroplex. She specializes in guiding new-construction buyers throughout North DFW and representing luxury listings in Dallas, backed by a 100% five-star client rating. Connect with Italia at thedyergrouptx.com.
