October is when the property tax bills start landing in Fredericksburg mailboxes. Every year a few clients call me holding theirs, asking the same thing. Did I get my homestead exemption? The good news is that this year's bill should feel a little lighter for a lot of homeowners. Here is what changed, and how to make sure you are getting every break you qualify for.
What Changed With the Homestead Exemption
On November 4, 2025, Texas voters approved two property tax amendments. Proposition 13 raised the school district homestead exemption from $100,000 to $140,000. Proposition 11 raised the extra exemption for homeowners who are 65 or older, or disabled, from $10,000 to $60,000. Together, that is up to $200,000 off your home's taxable value for school taxes.
Both changes applied starting with the 2025 tax year. School taxes are usually the biggest line on a Gillespie County bill, so this is real money for families here.
Who Qualifies
The homestead exemption is for the home you own and live in as your main residence. You can only claim one homestead in Texas.
- Your primary home: yes. If you live in it, you should file.
- A second home or weekend place: no. A Hill Country getaway you visit on weekends does not qualify.
- A short-term rental: no. My dad and I own Bubbly, our B&B one block from downtown, and it is an investment property. It does not get a homestead exemption, and yours will not either.
That last point matters for buyers. If you are buying a guest house or STR in Fredericksburg, plan your numbers without a homestead exemption.
Just Bought? You Do Not Have to Wait
This is the one I wish every new owner knew. You used to have to own the home on January 1 to qualify that year. Not anymore. If you buy and move in during the year, you can apply right away, as long as the seller was not already claiming it for that year.
The application is free. You file it with the Gillespie Central Appraisal District using the Residence Homestead Exemption Application. The Texas Comptroller lists the general deadline as before May 1. Bring your Texas driver's license or ID with your new address on it. Please do not pay a company to file it for you. It takes a few minutes.
The 10% Cap Is a Big Deal Too
Once your home is a homestead, its appraised value for tax purposes generally cannot go up more than 10% a year, plus the value of any new improvements. In a town where values have climbed the way ours have, that cap protects you from big jumps.
One thing to know when you buy. The cap does not transfer with the house. When a home sells, the appraisal can reset closer to market value for the new owner. So the seller's tax bill is not always a good guide to what yours will be. I always walk my buyers through this before they write an offer.
65 or Older? Ask About the Tax Ceiling
When you turn 65, Texas freezes your school taxes on your homestead at that level. This is called the tax ceiling. Your school taxes generally will not go up as long as you own and live in the home, unless you add on. If you move to a new homestead in Texas, you may be able to carry a portion of that ceiling with you. Ask the appraisal district about it before you sell.
Many people retire to Fredericksburg, so I bring this up a lot. It can make a real difference in what a home costs to own over time.
Reading Your Bill
Your bill lists each taxing unit, like the county, the city, Fredericksburg ISD and the hospital district. Look at the exemption column. If you see no homestead exemption and you live in the home, call the appraisal district. Tax bills are usually due by January 31, so you have a little time to sort it out before it is due.
My Quick Checklist
- Living in your home? Make sure your homestead is on file.
- Just closed? Apply now. You do not need to wait for January.
- Turning 65 this year? File for the over-65 exemption.
- Buying? Budget for taxes at today's value, not the seller's capped value.
- Buying an STR or second home? Leave the homestead out of your numbers.
I am a REALTOR®, not a tax advisor or attorney. This is general information, not legal or tax advice. Please confirm the details for your property with the Gillespie Central Appraisal District or the Texas Comptroller, and talk with your tax professional.
If you are thinking about buying or selling and want to understand what a home will really cost to own, let's talk. Please feel free to call anytime.