Texas's New $140,000 Homestead Exemption: What It Means for Your Spring, TX Mortgage in 2026

Texas's New $140,000 Homestead Exemption: What It Means for Your Spring, TX Mortgage Payment

If you own or are about to buy a home in Spring, there's a change to your property tax bill worth knowing about. Texas voters approved Proposition 13 in November 2025, raising the general school district homestead exemption from $100,000 to $140,000 starting with the 2026 tax year — and it has a direct effect on your monthly mortgage payment.

What Changed

The homestead exemption reduces the taxable value of your primary residence before your school district tax rate is applied. Raising it from $100,000 to $140,000 means $40,000 more of your home's value is shielded from school taxes than it was last year. If you already have a homestead exemption filed on your primary residence, the increase applies automatically to your 2026 tax bill.

How Much This Actually Saves You

For most Texas homeowners, the $140,000 exemption saves roughly $1,200 or more per year on school taxes alone. As an example, a buyer closing on a $350,000 home saves approximately $1,430 per year on school taxes after the exemption applies. Harris County homeowners can stack an additional optional county exemption of 20% of appraised value on top of that.

Why Spring Homeowners Should Pay Close Attention

Spring is unincorporated territory split across Harris and Montgomery counties, with parts falling under Klein ISD, Spring ISD, or Conroe ISD depending on the exact address. On top of county and school taxes, most Spring neighborhoods also carry a MUD (Municipal Utility District) tax that funds water, sewer, and drainage for that specific subdivision — MUD rates alone can run from $0 up to roughly $1.40 per $100 of assessed value. Combined, total property tax rates across Spring generally run somewhere between $2.10 and $3.58 per $100 of assessed value, so the new exemption's dollar impact varies meaningfully depending on which specific subdivision and school district a home falls in.

How This Affects Your Mortgage Payment Specifically

Property taxes are collected as part of your monthly escrow payment along with principal and insurance. A lower taxable value after the exemption means a lower annual tax bill, which means a lower required monthly escrow contribution — in other words, this exemption doesn't just save you money once a year, it can lower your actual monthly mortgage payment once your escrow account is recalculated to reflect it.

The Catch: You Have to File For It

The exemption only applies to your primary residence, and only after you file for it with the correct county appraisal district — Harris County Appraisal District (HCAD) or Montgomery Central Appraisal District (MCAD), depending on which side of the county line your home sits on. It is not automatic on a home you just purchased. If you closed on a home this year, mark your calendar to file your homestead exemption application for the following tax year.

Bottom Line

If you already own a homesteaded property in Spring, this increase is already working in your favor on your 2026 bill. If you're buying this year, filing your homestead exemption as soon as you're eligible is one of the highest-value five-minute tasks you'll do as a new homeowner — and it's worth asking your lender to double-check your escrow projection reflects the new $140,000 exemption rather than the old $100,000 figure.

FAQ

Do I need to reapply for my homestead exemption to get the new $140,000 amount?
No — if you already have a homestead exemption on file, the increase is applied automatically to your 2026 tax bill.

Is Spring, TX in Harris County or Montgomery County?
Both — Spring spans the county line, so the exact taxing jurisdiction, school district, and applicable appraisal district depend on the specific address.

When do I need to file a homestead exemption on a home I just bought?
You file with the appropriate county appraisal district for the tax year following your purchase; it does not apply automatically the year you close.

Andrew Hooey — NMLS #1808045 | Game On Mortgage, LLC — Company NMLS #2468752