Big Win for Texas Homeowners: Homestead Exemption Jumps to $140,000!

If you are a homeowner in Montgomery County, I have some excellent news that’s going to put a little extra money back in your pocket starting next month.

We all know that property values in Conroe, The Woodlands, and Spring have skyrocketed over the last few years. While it’s great for building equity, it has been tough on the property tax bill. That’s why I was watching the recent election results so closely—and Texas voters delivered!

What Just Happened? (Proposition 13 Passed) In the recent election, Texas voters overwhelmingly passed Proposition 13. Here is the headline: Effective January 1, 2026, the homestead tax exemption for school districts is increasing from $100,000 to $140,000.

What Does This Mean for You? If you own your primary residence (your "homestead"), the first $140,000 of your home's value is now completely exempt from school district taxes.

Previously, if your home was valued at $300,000, you paid school taxes on $200,000 (after the old $100k exemption). Now, you will only pay school taxes on $160,000.

• The Savings: According to the bill authors, this change is expected to save the average homeowner around $484 a year.
• The Goal: As Ed Zapata from the San Antonio Board of Realtors put it, this is about "keeping home ownership attainable." With insurance and interest rates being where they are, every bit of savings helps monthly affordability.

Even Better News for Seniors (65+) If you are 65 or older, the news is even better. Voters also passed Proposition 11, which raises the exemption for seniors to $200,000. Plus, remember that school district tax rates are "frozen" for seniors. This creates vital predictability for our neighbors living on fixed incomes or heading into retirement.

Action Item: Do You Need to Re-Apply? Generally, if you already have a Homestead Exemption on file, the increase should be automatic. However, if you bought a home in 2025 and haven't filed yet, now is the time! You can file Form 50-114 with the Montgomery County Appraisal District (or your local district if you are in Harris/Walker counties). It’s a free, one-time application that protects you as long as you live in the home.

The Bottom Line This tax cut is a step in the right direction for affordability in Texas. It creates breathing room for families in Magnolia and Willis and helps protect our seniors.

If you are curious about how these tax changes—and the current market shift—affect the value of your home, I’d love to help you run the numbers.

**Source:**San Antonio Express-News - How a $140,000 homestead tax exemption will provide relief for Texans Full Article: https://www.expressnews.com/business/real-estate/article/texas-homeowners-tax-exemption-proposition-13-21205997.php

Curious how your home's value stacks up with these new tax benefits? Click below for a free, up-to-date valuation. 👉 Get Your Free Home Valuation Here