What Is the Homestead Exemption in Carrollton, Texas?

The homestead exemption is a property tax benefit available to homeowners in Texas who live in their home as their primary residence. When you file and qualify, part of your home’s appraised value is excluded from taxation, which lowers your annual property tax bill.

This exemption applies to all taxing units that participate (such as the school district, city, and county). In Carrollton and Dallas County (and parts of Denton County), the most impactful benefit comes from the school district homestead exemption, which makes up the majority of property taxes here in Dallas–Fort Worth and North Texas.

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New Homestead Exemption Amounts (As of 2026)

Beginning with the most recent changes approved by Texas voters in 2025, the statewide school district homestead exemption was increased from $100,000 to $140,000 of your home’s taxable value. This is now the baseline for property tax relief on school district taxes.

In addition, Carrollton offers a local optional homestead exemption of 20 percent of your home’s appraised value (or a minimum exemption of $5,000), which reduces your city and some other local taxes.

Additional exemptions are still available for specific categories like age 65+, disability, or disabled veterans — though this post focuses on the general exemption for all homeowners.

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Who Qualifies?

To qualify for the homestead exemption in Carrollton, you must:

• Own the property and use it as your principal residence.

• File an application with your county appraisal district after purchasing your home and changing the address on your Driver’s License to your new home address (this shows proof of residency). For most Carrollton homeowners, that will be the Dallas Central Appraisal District (DCAD) — though portions of Carrollton fall in Denton County depending on where you live, in which case you file with Denton Central Appraisal District (DCAD).

• Only one homestead exemption is allowed per homeowner.

Filing is free, and once you file, the exemption continues year after year until the home is no longer your primary residence or ownership changes. You can find the homestead exemption forms on the appraisal district websites or via the Texas Comptroller’s Form 50-114.

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How the Exemption Works

Here’s a simple example using the new $140,000 exemption for school taxes plus the city’s optional 20 percent homestead exemption:

Scenario

A Carrollton homeowner’s property has a 2025 appraised value (taxable value) of $400,000.

Step-by-Step Calculation

School District Exemption

$400,000 – $140,000 = $260,000 taxable value for school taxes

City (Carrollton) Optional Exemption

Carrollton’s 20 percent exemption reduces the taxable value for city taxes by $80,000 ($400,000 × 20 %). So the city taxable value becomes $320,000 for city service taxes.

Other Taxing Entities

The exemption primarily affects your school district taxes (via the $140,000 exemption). Local optional exemptions like the Carrollton city 20 percent homestead reduce your city tax burden. County and other entities may have their own optional exemptions as well.

Tax Calculation (Simplified Example)

Suppose your Carrollton-area ISD tax rate (for example purposes) is 1.10 per $100 of value (1.10%) and your city tax rate is 0.70 per $100 (0.70%) (actual rates vary annually).

School Tax Portion:

• After school exemption taxable value: $260,000

• School tax owed = $260,000 × 1.10% = $2,860

City Tax Portion:

• After 20 percent city exemption taxable value: $320,000

• City tax owed = $320,000 × 0.70% = $2,240

Without the $140,000 school exemption and no local exemption:

• School tax owed = $400,000 × 1.10% = $4,400

• City tax owed = $400,000 × 0.70% = $2,800

Estimated Savings

• School taxes saved: $4,400 – $2,860 = $1,540 per year

• City taxes saved: $2,800 – $2,240 = $560 per year

Total estimated savings: $2,100+ per year
Note: These hypothetical tax rates illustrate how exemptions reduce your taxable value; real annual rates may vary.

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Additional Exemptions

Beyond the basic $140,000 school exemption and local optional exemptions, homeowners may qualify for additional exemptions that stack on top of the general homestead exemption, such as:

• Age 65 or Older / Disabled — Larger optional exemptions and possible tax freezes.

• Disabled Veteran — Additional exemptions based on disability rating (separate from the basic homestead).

These can result in even greater savings, especially when combined with tax freezes that limit the year-to-year increase in school taxes.