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Law & PolicyDallas-Fort Worth, TX6 min read

Texas Prop 13: $140K Homestead Exemption

Texas Prop 13 (SB 4/SJR 2) raised the school homestead exemption to $140,000 for tax year 2025, saving DFW homeowners about $390-410 a year.

Published June 30, 2026
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What Proposition 13 (SB 4 / SJR 2) actually does

Texas voters just delivered another round of property-tax relief:

  • -Raised the mandatory school-district residence homestead exemption from $100,000 to $140,000, a $40,000 increase in value shielded from school M&O taxes (Texas Legislature Online, SB 4 / SJR 2, 2025).
  • -Approved by Texas voters on November 4, 2025 with roughly 79% voting for it, one of 17 amendments that all passed that day (Ballotpedia; CBS Texas, 2025).
  • -Applies retroactively to tax year 2025, so it lands on the bill due January 31, 2026; no separate re-application is needed if you already hold a homestead exemption (Texas Comptroller; Texas Legislature Online, 2025).
  • -Builds directly on 2023 Prop 4 / SB 2, which had raised the same exemption from $40,000 to $100,000 and compressed school tax rates; combined 2023-2025 savings were pegged near $1,762 for the average homeowner (Lt. Gov. office; Texas Comptroller, 2023-2025).
  • -Companion Prop 11 / SJR 85 raised the extra over-65 and disabled school exemption from $10,000 to $60,000, taking those homeowners to $200,000 total ($140,000 + $60,000); it passed with about 77% support (FOX 4 DFW; Ballotpedia, 2025).

Dollar impact on a typical DFW homeowner

Here is what it actually saves you, by district:

  • -The new $40,000 of exemption only reduces the school portion of your bill; savings equal $40,000 times your ISD tax rate per $100 of value.
  • -Dallas ISD's 2025 rate is about $0.9797 per $100, so the extra exemption cuts roughly $392 per year off a Dallas homeowner's school taxes (Dallas Central Appraisal District 2025 tax rates).
  • -Frisco ISD's 2025-26 rate is about $1.0194 per $100 ($0.7494 M&O + $0.27 I&S), so the extra exemption saves about $408 per year in Collin/Denton County (Frisco ISD Finance; Community Impact, 2025).
  • -Statewide, the Comptroller estimates the $100,000-to-$140,000 jump saves the average homeowner about $363 at the average ISD rate of $0.9086 per $100 (Texas Comptroller; Texas Education Agency, 2024-2025).
  • -Over-65 and disabled DFW owners save more: the $200,000 combined exemption can wipe out school taxes entirely on lower-valued homes, on top of their existing school-tax ceiling (freeze).

How a DFW buyer or owner uses it

The savings are not always automatic; confirm it on your own home:

  • -The exemption is only automatic if the appraisal district has your homestead flag set; buyers who closed in 2024 or 2025 must file a homestead application with their county appraisal district to get it.
  • -File free directly with Dallas CAD, Tarrant Appraisal District (TAD), Collin CAD, or Denton CAD; ignore any mailer that charges a fee to 'file' or 'protect' your homestead, as those are not government forms (Fort Worth Report; NBC 5 DFW, 2025).
  • -Tarrant and other districts ran homestead audits in 2025; if you got a verification notice you must confirm eligibility or the exemption can be removed (Fort Worth Report; Community Impact, 2025).
  • -Check that your recorded owner name, occupancy date, and taxable value on the appraisal district site match reality before you rely on the exemption savings.
  • -New buyers should confirm the seller’s exemptions do not carry over automatically; the taxable value you see mid-year may not reflect your own homestead until you file.

Verify it yourself

Confirm the benefit on your own home: open your county appraisal district record (Dallas CAD, Tarrant TAD, Collin CAD, or Denton CAD), verify the homestead exemption flag is present, that you are the owner of record with a January 1 occupancy, and that the taxable value reflects the $140,000 (or $200,000 for over-65/disabled) school exemption. Cross-check the school (ISD) line on your tax statement, and ignore any paid "homestead filing" or "exemption protection" letter, since the CAD forms are free.

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Frequently asked questions

When does the $140,000 homestead exemption take effect?

Proposition 13 passed on November 4, 2025 and applies to tax year 2025, so it appears on the bill due by January 31, 2026. If you already have a homestead exemption on file, the increase is applied automatically; you do not re-apply.

How much will a Dallas-Fort Worth homeowner save?

The extra $40,000 of exemption cuts only the school portion of your bill. At Dallas ISD's 2025 rate near $0.9797 per $100 that is about $392 a year; at Frisco ISD's rate near $1.0194 it is about $408. The statewide average estimate is roughly $363.

Do seniors and disabled homeowners get more?

Yes. Companion Proposition 11 (SJR 85) raised the extra over-65/disabled school exemption from $10,000 to $60,000, so those homeowners reach $200,000 total ($140,000 plus $60,000), on top of their existing school-tax ceiling.

How do I make sure I am actually getting the exemption?

Look up your property on your county appraisal district site (Dallas CAD, Tarrant TAD, Collin CAD, or Denton CAD) and confirm the homestead flag, your name as owner of record, and the taxable value. If it is missing, file the free homestead application directly with the district; never pay a third-party mailer to do it.

Sources

  • Texas Legislature Online (capitol.texas.gov) - SB 4 and SJR 2 bill text and analysis, 89th Legislature, 2025
  • Ballotpedia - Texas Proposition 13 (homestead exemption) and Proposition 11 (elderly/disabled), 2025 results
  • CBS Texas - Texans approve propositions to increase homestead exemptions, November 2025
  • Office of the Lt. Governor - SB 4 / SJR 2 raising the homestead exemption to $140,000, February 2025
  • Texas Comptroller of Public Accounts - property tax exemptions and 'Property Tax Cuts as Large as Texas' fiscal note, 2023-2025
  • Texas Education Agency - 2024/2025 maximum compressed school tax rates and statewide average ISD rate, 2024-2025
  • Frisco ISD Finance / Community Impact - Frisco ISD 2025-26 tax rate of $1.0194 per $100, August 2025
  • Dallas Central Appraisal District - 2025 ad valorem tax rates (Dallas ISD about $0.9797 per $100)
  • Fort Worth Report / NBC 5 DFW - Tarrant Appraisal District homestead verification notices, 2025
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