Austin Property Taxes & the Texas Homestead Exemption
Updated November 2026 for the 2026 tax year.
Texas has no state income tax, so local governments rely on property taxes, and they are one of the biggest costs of owning a home here. The good news: if the home is your primary residence, the homestead exemption and the 10% cap can save you thousands of dollars a year. Here’s how it works in Austin and Central Texas.
How property taxes work in Texas
Your county’s appraisal district sets your home’s value each January 1 and mails a notice in the spring. Each local government that serves your address, usually the city, county, school district and a few special districts, then sets its own tax rate in late summer. Your bill is your taxable value (appraised value minus exemptions) times each rate, added together.
For a home in the City of Austin and Austin ISD, the combined 2026 rate is about $2.12 per $100 of value, roughly 2.1%. Before any exemptions, that’s about $12,700 a year on a $600,000 home. Rates vary by city and school district, and homes in suburbs with a municipal utility district (MUD) pay an extra MUD tax, so always check the exact rates for an address.
The homestead exemption and other ways to save
Every school district must exempt $140,000 of your home’s value from school taxes. Voters raised it from $100,000 in November 2025. School taxes are usually the largest part of the bill, so this is the biggest savings.
Homeowners 65 and older or with a disability get an additional $60,000 off school taxes, for $200,000 in all. Voters raised this from $10,000 in November 2025. Many cities, counties and other local governments add their own over-65 exemptions too.
Once you qualify for the over-65 or disability exemption, your school taxes on that home are capped at the amount in that first year. They can go down, but they won’t go up unless you add on to the home.
Cities, counties and other local governments can exempt up to 20% of your home’s value. Travis County offers the full 20%. What each taxing unit offers is shown on your appraisal notice.
Starting the second year you have the exemption, the taxable value of your homestead can’t rise more than 10% a year, even if the market value rises faster. Improvements you add are counted on top.
Disabled veterans get exemptions based on their disability rating, and a veteran rated 100% disabled or unemployable can be fully exempt on their homestead.
In Austin ISD, the $140,000 school exemption alone saves about $1,290 a year at the 2026 rate, and the over-65 exemption saves about $550 more.
How to apply for your homestead exemption
- Move in and update your ID. Your Texas driver’s license or ID must show the home’s address. Update it with DPS as soon as you move.
- Find your property on the appraisal district site. Travis Central Appraisal District (traviscad.org), Williamson Central Appraisal District (wcad.org) or Hays Central Appraisal District, depending on the county.
- File Form 50-114 online. The Residence Homestead Exemption Application is free. Most appraisal districts let you file online with a photo of your ID. Never pay a company to file it for you.
- Watch for confirmation. The exemption appears on your next appraisal notice and tax bill. Check that it’s there.
Protesting your appraisal
If your appraised value looks too high, you have the right to protest it, and many homeowners do every year. The deadline is May 15, or 30 days after your notice was mailed, whichever is later. Recent sales of similar homes are the strongest evidence, along with photos of any repairs your home needs. I’m happy to pull comparable sales for my clients.
Buying a home? Budget for taxes correctly
Don’t estimate your taxes from the seller’s bill. Their bill may reflect a homestead exemption, the 10% cap or an over-65 freeze that won’t carry over to you. Budget using the full purchase price and the current rates, then subtract the exemptions you’ll qualify for. The mortgage calculator includes Texas property taxes for this reason.
Property tax FAQ
How much are property taxes in Austin?
For a home in the City of Austin and Austin ISD, the combined 2026 tax rate is about $2.12 per $100 of taxable value, or roughly 2.1%, before exemptions. That rate covers the city, Travis County, Austin ISD, Central Health and Austin Community College. Rates differ in other cities and school districts.
Can I apply for the homestead exemption the year I buy?
Yes. Since 2022, Texas lets you apply as soon as you own and live in the home, instead of waiting until January 1 of the next year. The exemption is prorated for the year, as long as the previous owner didn’t already receive it.
What is the deadline to file for a homestead exemption?
The usual deadline is April 30 of the tax year, but you can file late, up to two years after the tax bill’s delinquency date, and get a refund for the years you missed. File as soon as you move in.
Does Texas have a state property tax or income tax?
Texas has no state income tax and no state property tax. Property taxes are set by local governments: your city, county, school district and special districts. That is why rates in Texas are higher than in many states.
When are property tax bills due?
Bills go out in October and are due by January 31 of the following year. If you have a mortgage with an escrow account, your lender usually pays the bill for you.
How do I protest my appraisal?
File a protest with your appraisal district by May 15, or 30 days after your notice of appraised value was mailed, whichever is later. Most districts let you file online, review their evidence, and accept a settlement offer. If you don’t settle, you can present your case to the Appraisal Review Board.
Does the homestead cap transfer to my new home?
No. The 10% cap applies to the home you live in and starts over when you buy a new one. In the first year, a new home is taxed on its full appraised value. Homeowners 65 and older can transfer a portion of their school tax ceiling to a new Texas home.
Do rental and investment properties get these exemptions?
No. Homestead exemptions and the 10% cap apply only to your principal residence. Many non-homestead properties valued under about $5 million have a separate, temporary 20% cap on value increases, sometimes called the circuit breaker.
Questions about taxes on a specific home?
I can look up the tax rates, exemptions and history for any address and help you compare areas. Call or text (512) 387-2708, or send me a message.
Sources: Williamson Central Appraisal District: General residence homestead, Travis Central Appraisal District: The protest process, Travis County taxpayer impact statement, Ballotpedia: Texas Proposition 11 (2025), Bloomberg Tax: Texas voters approve higher homestead exemption, Austin Current: Austin and Travis County 2026 tax rates. This guide is general information, not tax or legal advice. Confirm details with your appraisal district or a tax professional.