Texas Homestead Exemption Transfer Guide

The Transfer Right — What It Is

Texas law allows 65+ homeowners who have established the school tax freeze (ceiling) on one Texas property to transfer that ceiling to a new Texas primary residence. This means a Sun City Texas owner who sells and purchases a Kissing Tree home does not lose the school tax freeze benefit they built up over years — they transfer it proportionally to the new property. The ceiling amount adjusts based on the ratio of the new home's value to the old home's value.

How the Transfer Calculation Works

The transferred ceiling amount is calculated proportionally. Example: you sell a Georgetown home appraised at $500,000 where your school taxes were frozen at $3,500/year. You purchase a San Marcos home appraised at $400,000. Your transferred ceiling: ($400,000 / $500,000) × $3,500 = $2,800/year. The new home's school taxes will not exceed $2,800/year regardless of future appreciation.

If you upgrade — move to a higher-value home — the ceiling increases proportionally. Example: $500K frozen at $3,500 to a $650K new home: ($650,000 / $500,000) × $3,500 = $4,550/year ceiling on the new home. This is still locked permanently at that new amount.

The Transfer Process — Step by Step

1. When you purchase your new Texas home, file Form 50-114 (Homestead Exemption Application) with the county appraisal district for your new county — Hays CAD if moving to Kissing Tree (hayscad.com), Williamson CAD if moving within Georgetown
2. Check both the General Homestead and Over-65 boxes
3. Include documentation of your prior school tax ceiling from your previous county — request a copy of your prior year property tax bill showing the frozen school tax amount from your previous county's appraisal district
4. Request specifically that the transfer ceiling be applied — not all county appraisal district offices proactively apply the transfer without a specific request
5. File by April 30 of the year of purchase or within the two-year retroactive window
6. Confirm with the new county CAD that the transferred ceiling has been recorded on your new property's tax account before the first bill arrives

Important Timing Consideration

The transfer works best when both the sale of the old home and the purchase of the new home occur in the same tax year — January 1 through December 31. If you sell in year one and do not purchase until year two, you may have a gap year where your new property does not yet have the ceiling. Consult a Texas CPA or property tax consultant if your transaction spans a tax year boundary to ensure the transfer is applied correctly.