What Happens to Your Homestead Exemption When You Move Up to a New House in North Dallas?

"We're selling in Allen and buying in Prosper. Do we lose our homestead exemption? Can we keep both until the old house sells?"

Short answer: you can't hold two. Texas allows one residence homestead exemption per person per year. Your old house keeps its exemption for the tax year it was in place on January 1. On the new house, you file a NEW application with the appraisal district. And the 10% appraisal cap? It does NOT move with you. It starts over.

Can you have two homestead exemptions in Texas?

No. Texas Tax Code § 11.13(h) says a person may not receive the exemption "for more than one residence homestead in the same year." The Texas Tribune (Oct. 20, 2026) puts it plainly: one primary residence, in Texas or anywhere else.

Here's why it matters on a move-up. Under § 11.13, school districts exempt $140,000 of a homestead's appraised value, plus another $60,000 if you're 65 or older or disabled.

💰 On a $600,000 home in Frisco, the school district may tax approx. $460,000 of value instead of $600,000. That's taxable value. NOT your tax bill. City, county and any MUD (Municipal Utility District) rates still apply, and those come from Collin CAD (Collin Central Appraisal District) or Denton CAD.

When does the old exemption end, and when can you file on the new house?

Denton CAD's FAQ says exemptions "reflect the owner on January 1st." That one date drives everything.

• Your old house: the exemption stays on it for that tax year, and the year's taxes are typically prorated at closing. Once you move, the Texas Comptroller says you must tell the appraisal district in writing before the next May 1.
• Your new house, if the seller had a homestead: buy after January 1 and you generally wait until the new year to apply (Texas Tribune, Oct. 20, 2026).
• Your new house, if there was no exemption (common with new construction): you may apply once you own it and live there.

Collin CAD takes applications through its online portal, by mail or in person. NOT by email. The address on your Texas driver's license must match the new house. Regular deadline: April 30.

Why your new tax bill may not match the seller's

Here's the part move-up buyers get wrong: the 10% cap belongs to the OWNER, not the house.

Under Texas Tax Code § 23.23(c), the cap takes effect January 1 of the tax year AFTER the first year you qualify for the homestead exemption. It expires when the owner who earned it no longer qualifies.

So the seller may have years of capped value baked into their bill. You may start closer to full appraised value.

Their cap. Their exemptions. Their bill. Not yours.

Budget the new payment on the house's current appraised value and current rates, subject to lender approval and qualification. One more: if you're 65+ or disabled, Collin CAD says you may be able to transfer the percentage of your school tax ceiling to the new home.

Quick answers

Do I have to cancel the homestead on my old house?
You must notify the appraisal district in writing before the next May 1 after you move (Texas Comptroller).

Can I file the week I close?
Only if the house had no exemption this year. If the seller had one, plan to file starting January 1.

Do I lose the school exemption amount when I move?
No. You may claim it again on the new home. You just can't claim it on both.

My take

The homestead move is paperwork. The tax reset is strategy.

And here's the honest part: if the new house only pencils out using the seller's tax bill, it doesn't pencil out. Not this year. Maybe not this house. Waiting until the numbers work on YOUR bill is the right call, and I'll tell you that.

The exemption moves with you. The cap doesn't. 🏡

📲 DM me "NEW HOMESTEAD" on Instagram @JenniferKirkRealtor, or call 214-592-7605.

Jennifer Kirk, REALTOR® · Real Broker, LLC · Equal Housing Opportunity. I'm not a lender or financial advisor. Talk with a licensed lender about your situation.

Sources

All accessed November 3, 2026.

• Texas Comptroller — Residence Homestead Exemption FAQ
• Texas Tax Code § 11.13 (FindLaw, current as of Jan. 1, 2026)
• Texas Tax Code § 23.23 (Texas.Public.Law)
• Collin CAD — Homestead Exemption FAQs
• Denton CAD — Frequently Asked Questions
• The Texas Tribune — How to apply for a Texas homestead exemption (Oct. 20, 2026)