Hundreds of thousands of Texas homeowners who appear to qualify for the state's homestead exemption still have not claimed it, missing out on potentially thousands of dollars in property tax savings.
Here's what to know
According to The Texas Tribune, research from Child Poverty Action Lab found that about 57,000 Dallas County households did not claim the exemption, leaving nearly $310 million in tax savings uncollected. Roughly 60,000 homeowners in Travis County and another 60,000 in Bexar County may be missing the break, while Harris County estimated 113,000 potentially eligible homeowners are not claiming it.
At minimum, the exemption cuts $140,000 from the portion of a home's value that school districts can tax. Homeowners may save even more when cities, counties, hospital districts, or community colleges offer their own exemptions.
Older homeowners can see even larger reductions. The UT Austin Housing Policy Clinic and Child Poverty Action Lab reported that the median Dallas County homeowner over 65 would owe just $1,872.
To get the exemption, homeowners must apply and show both that they own the property and that it is their primary residence.
Heather Way, who leads the University of Texas at Austin School of Law's Housing Policy Clinic, described the information gap, per the Tribune, asking, "How are you supposed to even know that this exemption exists if your real estate agent or mortgage broker hasn't told you about the exemption?"
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State Sen. Paul Bettencourt said participation has gone up, Tribune reported. The Texas Comptroller's office said 6.28 million Texas homeowners had a homestead exemption in 2025, about 580,000 more than in 2023.
More background
In West Dallas, the stakes have grown as the Margaret Hunt Hill Bridge tied the neighborhood more closely to downtown and helped fuel development pressure.
Johana Miranda of the Wesley-Rankin Community Center's Homestead Preservation Center said the exemption can determine whether someone can remain in their home, the Tribune reported.
Child Poverty Action Lab found that missed claims are concentrated in particular communities rather than evenly scattered. In Dallas County, claim rates were lower in Hispanic and Black neighborhoods than in predominantly white and Asian areas and lower in low-income neighborhoods than in wealthier ones.
A report from the University of Texas at Austin School of Law's Housing Policy Clinic and Child Poverty Action Lab estimated that the owner of a median-priced home in Dallas County paid about $7,062 in taxes without the exemption, compared with roughly $4,573 with it — a difference of around $2,489.
About 40,000 of Dallas County's estimated 57,000 eligible properties without the exemption are in low-income areas.
Miranda said language and cost can be barriers. Even with translated forms, she said some Spanish-speaking homeowners still struggle to understand the questions. "I've encountered a lot of clients that obviously speak Spanish, but they wouldn't understand the questions that were being stated or asked," she said, according to the Tribune.
Child Poverty Action Lab estimated that low-income Dallas County households that have not claimed the exemption could save about $5,000 on average, including possible refunds.
The organization said that is roughly the equivalent of five months of food or three months of health care expenses for a family of four.
What can be done?
Texas law requires appraisal districts to identify homeowners who may qualify and notify them if they haven't applied.
The Tribune reported that Bexar Central Appraisal District sent notices to nearly 82,000 homeowners in January, and district spokesperson Jennifer Rodriguez said that by October only about a quarter had claimed the exemption.
Some districts are going beyond mailed notices. Cynthia Martinez, chief strategy officer at Travis Central Appraisal District, said the district holds workshops, shows up at community events, and sometimes sends employees door to door, per the Tribune.
It is also urging lenders and real estate agents to mention the tax break earlier in the homebuying process.
Way said the state could simplify the current system across 253 appraisal districts by creating a single online application portal through the Texas Comptroller's office.
Way and Martinez also said better data sharing from the Texas Department of Public Safety could ease ID checks that currently create problems for older homeowners.
Homeowners file through their local appraisal district and need documents showing ownership, primary residence, and a current state ID.
Miranda said she has even driven West Dallas residents to the DMV to help them remain eligible.
"It comes down to being able to afford another year of taxes," she said, per the Tribune. "It does make a huge impact on the decision of staying or having to leave."
Where can I learn more?
Homeowners elsewhere are facing many of the same pressures around taxes, housing costs, and property rules.
• In Palo Alto, California, assessed property values rose 5.47% as tax appeals climbed above county trends.
• Nationwide, homeowners rushed to claim tax incentives for energy upgrades before deadlines closed.
• In Hawai'i, lawmakers approved property insurance relief legislation after costs became an "unbearable burden" for homeowners.
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