If you own property in Houston, there’s something powerful protecting you that you might not even know about: Texas homestead laws.

Homestead laws are some of the strongest property protections in the entire country, and they could be the difference between keeping your family home and losing everything you’ve worked for.

Here’s what makes Texas special: while other states might let creditors take your house to pay debts, Texas says otherwise. Your homestead (the place where you and your family actually live) gets incredible protection from most creditors. Even more, these laws can reduce your property taxes and even help your family keep the house after you’re gone.

But here’s the catch: these protections aren’t automatic, and they don’t cover every situation. There are specific rules about what qualifies as a homestead, how much land is protected, and what debts can still touch your property. Miss these details, and you could lose out on protections that were meant to be yours.

Whether you’re buying your first home in Houston, worried about existing debts, planning for your family’s future, or facing legal trouble, the Houston real estate attorneys at Pathways Property Lawyers can make sure you’re getting every protection the law offers.

What Exactly Is a Homestead in Texas?

In Texas, your homestead is the place where you actually live and sleep most nights. It’s not just any property you own. 

For your property to qualify as a homestead in Texas, you need to meet three basic requirements. 

1. You must actually live there as your main residence. 
2. You have to intend for it to be your permanent home (not just a temporary place to stay)
3. You need to use the property primarily as a place to live, not as a business.

While some states cap homestead protection at $50,000 or $100,000, Texas doesn’t put a dollar limit on how much your homestead can be worth. In Texas, whether your home is worth $150,000 or $1.5 million, it can still get full homestead protection.

But there are size limits. If you live in Houston proper, your homestead can include up to 10 acres of land. If you’re in unincorporated Harris County or other rural areas, you can protect up to 100 acres for a family or 200 acres if you’re single. That’s a lot more generous than most states.

The Shield That Protects Your Home From Creditors

One of the best aspects of Texas Homestead law is that it protects your home from creditors.  For example, if you have $200,000 in debt, most states would allow creditors to force you to sell your home to pay off those debts. Not in Texas. In Texas, your homestead is generally off-limits.

The protection covers most types of debt, including credit card debt, business loans, personal loans, and judgments from lawsuits. If someone sues you and wins a judgment, they usually can’t touch your homestead to collect that money.

However, there are important exceptions you need to know about. Your homestead protection won’t save you from mortgage payments, property taxes, contractor liens for work done on your home, or federal tax liens. These debts can still result in losing your home if you don’t pay them.

The protection also doesn’t cover debts you secured with your home as collateral, like home equity loans or lines of credit. If you borrowed money against your house, that lender can still foreclose if you don’t pay.

Property Tax Benefits That Save You Money Every Year

Your homestead designation also cuts your property tax bill. When you file for a homestead exemption with Harris County, you automatically get $100,000 knocked off your home’s assessed value for school tax purposes. (There is currently pending legislation that might increase this for seniors and disabled homeowners.)

Let’s say your Houston home is assessed at $300,000. With the homestead exemption, you only pay school taxes on $200,000 of that value. Depending on your tax rate, this could save you $800 to $1,200 every year.

If you’re over 65 or disabled, the savings get even better. You can qualify for additional exemptions that could save you thousands more each year. Plus, once you turn 65, your school district taxes get frozen at that level, even if property values go up.

The key is applying for these exemptions. They’re not automatic. You need to file the paperwork with the Harris County Appraisal District, usually by April 30th of the tax year. If you miss the deadline, you might have to wait until the next year to start saving.

Five-Year Verification Requirement

Starting in 2023, Texas law requires homeowners to verify their homestead exemption every five years with their county appraisal district. This means that if you receive a verification notice, you must respond and confirm your eligibility to maintain your exemption. Failure to do so can result in losing your homestead exemption and facing a significant increase in your property taxes. 

How Your Family Keeps the Home After You’re Gone

Texas homestead laws also protect your family when you die. In many cases, your surviving spouse and minor children have the right to stay in the homestead, even if you have debts or other family members who might want to sell the property.

This protection can be incredibly valuable. Let’s say you die with $100,000 in business debts, but your homestead is worth $400,000. Normally, creditors might try to force a sale to get their money. But homestead laws generally let your family keep living in the home.

The surviving spouse typically gets a life estate in the homestead, meaning they can live there for the rest of their life. Minor children also get protection until they reach adulthood.

However, this area of law can get complicated, especially if you have children from previous marriages or complex family situations. That’s why estate planning with a qualified attorney is so important for homeowners.

Contact Our Houston Real Estate Lawyers 

While Texas homestead laws are strong, they’re not a magic shield against every financial problem. If you’re facing foreclosure on your mortgage, homestead protection won’t stop it. If you owe property taxes, the county can still sell your home.

Whether you’re buying your first Houston home, calling a Houston real estate lawyer is one of the smartest calls you can make.

Call Pathways Property Lawyers at 832-364-6234 or fill out our confidential contact form to learn more about your legal options.

Roger G. Jain

As long as I can remember, I have been inspired by courtroom drama. The story, regardless of who was fighting and for what cause, always came down to the very basic human traits of greed, jealousy, vengeance, deceit, ego, and pride. The skilled lawyer, always a good listener, could always find the heart of the case and convey it simply and eloquently to the jury and help the jury reach a just verdict. Read more here.