Texas has no state income tax, but property taxes carry much of the load for schools and local services, so what you pay depends heavily on a few exemptions that you have to claim yourself. The homestead exemption is the most important one for anyone living in the home they own. It is free to apply for, it is not automatic, and many new owners miss it. This guide explains what the exemption does, how to apply in New Braunfels, and how it connects to the cap on yearly appraisal increases. Amounts and rules change with legislation and voter-approved amendments, so confirm the current figures with your appraisal district before you rely on any number here.
THE BASICS
What the Homestead Exemption Does
A homestead exemption subtracts a set amount from the taxable value of your primary residence before tax rates are applied. The biggest piece is for school district taxes, and in recent years the Legislature and voters have raised that amount. Your appraisal district can tell you the current figure, and your tax bill shows which exemptions are applied. Some local taxing units, such as the county or city, may offer their own optional exemptions or percentage reductions, which vary by entity. See New Braunfels Property Tax Guide for how your total tax bill is built from the different taxing units.
THE CAP
The 10% Limit on Appraisal Increases
Once a property has a homestead exemption, Texas law limits how much its taxable appraised value can rise from one year to the next, generally to 10% over the prior year's appraised value, even if the market value rises faster. The cap applies to the taxable value, not to the amount of your bill, since tax rates can still change. It begins the year after you first qualify, and it resets when the property is sold and a new owner applies. This is one reason claiming the exemption promptly matters.
WHO QUALIFIES
Eligibility Basics
To claim a homestead exemption, the property generally has to be your principal residence, and you must own it. You cannot claim a homestead on more than one property, and investment properties and second homes do not qualify. Eligibility is measured as of January 1 of the tax year, so the timing of your purchase and move-in matters. If you bought partway through the year, ask the appraisal district how it applies to your situation.
HOW TO APPLY
Filing With the Appraisal District
Applications are filed with the county appraisal district where the home is located. New Braunfels sits in both Comal and Guadalupe counties, so check which district your address falls under. Each district has an application form on its website, and filing is free. You will typically need to provide your name and ID information and the property address, and the form must be signed.
- File with the correct appraisal district for your address: Comal Appraisal District for properties in Comal County, or Guadalupe Appraisal District for properties in Guadalupe County
- The general deadline is April 30 of the tax year, though late applications are allowed in some cases, so ask the district if you have missed it
- You usually only apply once; the exemption continues each year as long as you own and live in the home
- Do not pay a company to file for you: the application is free to file yourself
SENIORS AND DISABLED OWNERS
Additional Benefits for Age 65 and Over
Homeowners who are 65 or older, or who qualify as disabled, can receive an additional exemption on school district taxes, and their school district taxes are generally subject to a ceiling that limits how much the school tax on the home can rise. There are also optional local exemptions that some taxing units offer to seniors. Details differ by taxing unit and change over time, so confirm what applies with your appraisal district. If you are planning to retire here, see Retiring to New Braunfels.
NEW BUYERS
What to Do After You Buy
Do not assume the seller's exemption carries over, since it generally ends when the property changes hands and the new owner has to apply. Mark a date to file once you have moved in, and confirm that your closing paperwork and mortgage escrow reflect the right taxes. Your lender's escrow estimate may be based on the previous owner's exemption status, which is why a first-year tax bill can differ from what you expected. See Closing Costs in Texas and How Much House Can You Afford for how taxes factor into your payment.
EVERY YEAR
Check Your Notice and Know Your Protest Rights
Appraisal notices typically arrive in the spring, and you have a limited window to protest the value if you think it is too high. Your tax bill usually arrives in the fall, and it is worth confirming that your homestead exemption appears on it. If it does not, contact the appraisal district right away. Condition issues can matter when making a case for a lower value, so keeping up with maintenance and records helps.
NEXT STEP
Ask Before You Assume
Todd Spencer can point you to the right appraisal district for your address and explain how the exemption fits into your overall budget. If you are shopping for a home, start with the buyer's guide, and if you are selling, remember that the buyer will need to apply for their own exemption.
Common questions
Frequently asked questions.
What is the Texas homestead exemption?
It is a reduction in the taxable value of your primary residence, applied before tax rates are calculated. It also unlocks the cap on yearly increases in taxable value. You have to apply for it; it is not automatic.
How do I apply for a homestead exemption in New Braunfels?
File an application with the appraisal district for your property's county: Comal Appraisal District or Guadalupe Appraisal District. The form is free, and you typically apply once as long as you stay in the home.
When is the deadline to apply?
The general deadline is April 30 of the tax year. Late applications are allowed in some situations, so contact the appraisal district if you have missed it.
What is the 10% appraisal cap?
For a homestead, the taxable appraised value generally cannot rise more than 10% above the prior year's appraised value, even if the market value rises faster. It applies to the taxable value, not to the tax rate or the amount of your bill.
Does the exemption transfer when I buy a home?
No. The seller's exemption generally ends when the property is sold, and the new owner has to apply for their own once the home is their principal residence.
Do investment properties and second homes qualify?
No. The homestead exemption is only for your principal residence, and you can claim it on only one property.
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