Homestead Exemptions in Denton, Texas

by OnDemand Realty

What Is the Homestead Exemption in Denton, 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 Denton and 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.

New Homestead Exemption Amounts (As of 2026)

Beginning with the most recent changes approved by Texas voters in 2025, the standard 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.

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.

Who Qualifies?

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

Own the property and use it as your principal residence.
File an application with the Denton Central Appraisal District (DCAD) once you purchase your home and change your Driver’s License address to your new home address (this shows proof of residency).
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 Denton Central Appraisal District website or through the Texas Comptroller’s official exemption form (Form 50-114).

How the Exemption Works

Here’s a simple example using the new $140,000 exemption:

Scenario

A Denton 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

Other Taxing Entities

The exemption primarily affects your school district taxes. City, county, and other local entities may offer additional optional exemptions, but the largest impact is the school exemption in Denton.

Tax Calculation (Simplified)

Suppose your Denton ISD tax rate is approximately 1.15 per $100 of value (or 1.15%) (a commonly cited rough rate — actual rates vary annually and can be confirmed with your DCAD tax notice).

After exemption taxable value: $260,000
School tax owed: $260,000 × 1.15% = $2,990

Without the $140,000 exemption:

Taxable value: $400,000
School tax owed: $400,000 × 1.15% = $4,600

Estimated Savings on School Taxes

$4,600 – $2,990 = $1,610 per year

This shows how the exemption directly reduces the taxable value used to calculate school taxes. Your city and county taxes still apply to the full value or their exemptions.

Note: This example uses hypothetical tax rates for illustration purposes; actual tax rates vary annually based on school district budgets, voter-approved measures, and appraisal district data.

Additional Exemptions

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

Age 65 or Older / Disabled — Larger school district 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 school district tax freezes that limit how much your tax bill can increase year over year.

Filing Tips and Deadlines

File between January 1 and April 30 of the tax year you want the exemption to apply; early filings aren’t accepted.
You only need to file once, unless your eligibility changes (for example, you move or change primary residences).
Applications are available through the Denton Central Appraisal District website.

Why This Matters in Denton

Property taxes in Denton and Denton County tend to be higher than the national average, in part because local services and schools depend heavily on property tax revenue. The homestead exemption — especially now at $140,000 — gives homeowners significant relief on their school tax bills.

For homeowners weighing buying vs. renting, or planning long-term budgeting, understanding and applying this exemption can significantly lower annual tax costs and improve affordability.

Conclusion

The homestead exemption is one of the most powerful property tax tools available to homeowners in Denton, Texas. With the recent increase to $140,000 for school district taxes, qualifying homeowners now enjoy bigger reductions in taxable value than ever before. Filing is simple, costs nothing, and can result in hundreds to thousands of dollars in annual property tax savings.