How much does the homestead exemption save in Texas per year?
Most Texas homeowners save several hundred dollars in annual terms — but in areas like Austin, savings frequently top $1,000.
The major impact is from school district taxes. Every school district in Texas must subtract $140,000 from your home’s value before calculating the bill. If you are 65 or older or have a disability, the district subtracts an additional $60,000 on top of that.
Why is there no single dollar amount?
Savings vary, as Texas doesn't have a flat tax rate. Each city and county alongside the school district sets its own rate. Therefore, the "worth" of the exemption changes with where you live.
In order to locate the savings, you essentially multiply the exemption amount by the local tax rate. Since the tax rate stays the same but the taxable value drops, you pay less out of pocket.
How much does the school homestead exemption save in Austin?
In accordance with the 2025 Austin ISD tax rate of $0.9252, the standard $140,000 exemption cuts the bill by roughly $1,295. For those satisfying qualifications for the over-65 or disability exemption, the total savings jump to about $1,850.
| Exemption piece | Austin ISD example |
|---|---|
| $140,000 General School Exemption | Approx. $1,295 |
| Extra $60,000 — Age 65+ or Disability | Approx. $555 |
| Total School-Tax Savings | Approx. $1,850 |
Can Austin homeowners save more than the school-tax amount?
Yes. Austin residents generally see much higher totals, as the City of Austin & Travis County both present a 20% general exemption.
For example, on a home valued at $400,000:
A 20% City exemption removes $80,000 from the taxable value — saving about $419 based on the City of Austin’s amended FY 2025–26 tax rate
A 20% County exemption removes another $80,000 — saving about $301
When these are added to the school tax savings — the total impact is major
Why choose Dimov Partners?
We take the guesswork out of property taxes. Dimov Partners analyzes the specific ownership records as well as exemption status in order to present a concrete, precise picture of taxation.