Companies mail official-looking letters offering to file your homestead exemption for $50 or more. Throw them away. The filing is free, takes about fifteen minutes, and is the single best return on paperwork in Texas homeownership.
What does the exemption actually save?
Two things. First, $140,000 comes off your home's taxable value for school district taxes, the largest line on nearly every Montgomery County bill. Texas voters raised the exemption to that level in November 2025. Second, and quietly more valuable over time, your taxable value cannot rise more than 10 percent in any year once the exemption is on file, no matter what the market does. Owners 65 or older or disabled receive an additional $60,000 school exemption and a ceiling on their school taxes.
For the full picture of how the exemption fits into your bill, see Texas property taxes explained.
Who qualifies?
You must own the home and occupy it as your principal residence on January 1 of the tax year, though buyers who close mid-year can often qualify on a prorated basis if the previous owner was not already claiming the exemption for that year. One homestead per household, primary residences only. Rentals, second homes, and LLC-held investment properties do not qualify.
How do I file with MCAD?
Three steps. Update your Texas driver license to the property address, because the address on your license must match the property. Complete the residence homestead exemption application, Form 50-114, on the Montgomery Central Appraisal District website or on paper. Submit it with a copy of your license. That is the entire process. No fee, no notary, no third party.
The deadline is April 30 of the tax year, and Texas allows late filing for up to two years after the delinquency date, so if you missed a year, you may still be able to recover it. Once approved, the exemption renews automatically for as long as the home remains your primary residence.
When should new buyers file?
The week you move in. Waiting costs real money in a rising year because the 10 percent cap only protects you once the exemption exists. It is the first item on the closing follow-up list I send every buyer.