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One homestead at a time

Step 29 of 29 · Selling the W home in Texas, without an agent

What this is

Texas allows you only one homestead exemption at a time. The exemption belongs to your principal residence — the home you actually live in — not to every home you own.

Why it matters

If the old home still carries the exemption while you claim it on the new one, you could be hit with back taxes and penalties. The rules are strict about this.

How to do it

  1. Understand that qualification is set as of January 1 each year, and it follows your principal residence.
  2. When you move and the old home is no longer your main home, tell the old county appraisal district right away. Ask them to remove the exemption from the old home.
  3. Then file for the exemption on the new home with its appraisal district.
  4. If you are away from your home for a while — such as a temporary stay elsewhere of about 2 years or less — you do not lose the exemption. But a permanent move does end it.

The law, in plain English

The homestead exemption is limited to one home because it is meant to protect the place you actually live. Once the old home is no longer your principal residence, it no longer qualifies. A short, temporary absence of roughly 2 years or less is fine, but a true move is not.

Good to know: If you sell the old home, the new owner will apply for their own exemption, so yours should come off the old property promptly.
Watch out: Keeping the exemption on a home you no longer live in is against the rules and can lead to back taxes. Notify the old appraisal district as soon as the home stops being your principal residence.

Sources: TexasLawHelp — Property Taxes and Homestead Exemptions · Texas Comptroller — Property Tax Exemptions

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