Huge Win for Homeowners: Flower Mound Increases Homestead Exemption to 20%
Texas may have no state income tax, but our property taxes pack a punch. Fortunately, if you live in Flower Mound, some great news just dropped: the Town Council voted to increase the homestead exemption from 12.5% to a full 20%.
For homeowners, that’s a real win. It’s not just a symbolic gesture—this change translates to meaningful, long-term savings. If you own your home (or plan to), now’s the time to understand what this means and how to make the most of it.
What Is the Homestead Exemption in Texas?
The Basics of Property Tax Relief
In Texas, your primary residence may qualify for a homestead exemption—a form of property tax relief designed to lighten the load for homeowners. This exemption reduces the taxable value of your home, cutting down your yearly tax bill.
For example, if your home is valued at $500,000 and you have a 20% homestead exemption, you're only taxed on $400,000. That’s $100,000 that’s off the books when your property taxes are calculated.
Texas is a Non-Disclosure State—Why That Matters
Texas is also a non-disclosure state, which means you're not required to report your home’s purchase price. This gives you privacy—and helps prevent the tax assessor from using your sale price as the basis for increasing your tax bill.
What Just Changed in Flower Mound?
From 12.5% to 20%—Breaking Down the Increase
Previously, Flower Mound homeowners received a 12.5% homestead exemption. The Town Council recently considered raising it to 17.5%—but instead, they went all in and voted for the full 20% exemption.
This increase reflects the town’s commitment to supporting residents amid rising property values and tax pressures.
What That Means in Real Dollars
Let’s break it down:
On a $600,000 home, a 20% exemption knocks $120,000 off the taxable value. Compare that to the old 12.5% exemption, which only removed $75,000. That’s an additional $45,000 in tax-free value—potentially saving you hundreds every year.
Explore more local market insights on our Flower Mound homes for sale page.
Why Filing Your Homestead Exemption Is Essential
How the 10% Cap Protects You
Another major perk of the Texas homestead exemption? It limits how much your taxable value can rise each year. Even if your home’s market value jumps 20%, your taxable value can only go up by 10% per year—so long as it’s your primary residence and your exemption is in place.
During the boom years of 2020 to 2023, many homeowners saw skyrocketing property valuations. Without this cap, some families would’ve been priced out of their own homes.
When and How to File
Great news: you no longer have to wait until January 1st to file your homestead exemption. Once you’ve purchased your home and moved in, you can file anytime. While it won’t take effect until the next tax year, filing early ensures you don’t miss out.
File online through the Denton County Appraisal District or your county’s appraisal district, depending on where you live in Flower Mound.
How to Protest Your Property Tax Assessment
Your Legal Right to Challenge
Even with the exemption, your property’s assessed value can sometimes come in higher than expected. If it does, you have the right to protest the valuation every year. This is especially important if your home's value has risen more than 10%, as you can often force a correction down to the legal cap.
And the best part? It doesn’t cost anything to file a protest—and you can do it yourself or with a professional.
Learn how to protect your investment using our Signature Sales Strategy.
Why This Matters Now More Than Ever
In a high-demand, high-appreciation area like Flower Mound, protecting your home’s affordability is critical. This 20% exemption offers an immediate way to lower your tax bill—and the longer you stay in your home, the more valuable that savings becomes.
Plus, with top-rated schools, master-planned communities, and a thriving family-oriented lifestyle, Flower Mound continues to be one of the best places to live in Texas—and maybe even the nation.
If you're considering buying your first home here, explore our BLUEFUSE Buyer Blueprint for a step-by-step guide.
Frequently Asked Questions
What is the current homestead exemption rate in Flower Mound?
As of 2025, the Town of Flower Mound offers a 20% homestead exemption for primary residences.
When should I file for a homestead exemption in Denton County?
You can file as soon as you move into your home. It must be your primary residence, and the exemption takes effect the following year.
Can I still protest my property taxes if I’ve filed a homestead exemption?
Yes. You can protest your property’s assessed value every year—even if you have the exemption in place.
Does the homestead exemption reduce all parts of my tax bill?
It primarily applies to school district taxes, which often make up the bulk of your property taxes.
Need help navigating your homestead exemption, or thinking about buying or selling in Flower Mound?
We’re here to help you steward every step of your real estate journey with wisdom and confidence.
👉 Schedule a free consult with Brian White and the BLUEFUSE team today.
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