If two Stone Oak homes are listed near the same price and one shows a much lower annual tax figure, which one costs less to own? Usually that number tells you less than it seems to. A tax figure on a resale listing reflects the current owner's appraisal history and the owner's exemptions. When the house changes hands, much of that goes away.
Most buyers have heard one version of this. The seller's appraisal was held down by the 10% homestead cap, so the buyer's bill jumps once the cap resets. That was a strong explanation a few years ago. In 2026 it explains less. In Bexar County this year, the biggest gap between a seller's bill and a buyer's first bill is more likely to come from exemptions tied to the seller as a person. The most important of these is the over-65 tax ceiling.
The Contract Already Assumes the Estimate Will Change
The standard Texas resale contract plans for this. Paragraph 13 of TREC's One to Four Family Residential Contract (Resale), Form 20-19, says:
"Taxes for the current year, interest, rents, and regular periodic maintenance fees, assessments, and dues (including prepaid items) will be prorated through the Closing Date. The tax proration may be calculated taking into consideration any change in exemptions that will affect the current year's taxes. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If taxes are not paid at or prior to closing, Buyer shall pay taxes for the current year."
The second sentence matters most here. The contract names exemptions directly as something that can change the current year's taxes when a property sells. The proration at closing is an estimate, and the paragraph sets out how to fix it once the real statement comes. The question for a buyer is which piece of that estimate is most likely to change.
Why the 10% Cap Matters Less This Year
The Texas Comptroller describes the homestead limitation as a limit on how fast appraised value can rise. It does not cap market value. A qualifying homestead's appraised value can't go above the lesser of two figures. One is market value. The other is the prior year's appraised value plus 10%, plus the value of any new improvements.
That rule bites hardest when prices climb faster than 10% a year. In those years, a long-time owner's taxable value falls further behind the market every year, and a buyer starts fresh at full market value. In flat or falling years, the gap closes. The capped value keeps rising by up to 10% while market value stays put, and once the capped value catches up, appraised value is simply market value.
Bexar County has spent the past year in that kind of market. In April 2026, the Bexar Appraisal District said it was mailing notices to about 196,000 owners whose values changed by more than $1,000, out of more than 734,000 properties reviewed. It described values as relatively flat, with residential values softening and many showing slight declines. In May 2026, Texas Public Radio reported that the average residential appraisal was nearly 2% lower than the year before, at about $330,454. Chief Appraiser Roy Sandoval told TPR, "Unlike the pandemic years, where we had double-digit increases in 2022 and 2023, this has been a relatively flat market."
Those double-digit years are when the cap gaps opened. A flat stretch since then gives capped homesteads room to close them. A Stone Oak home bought before 2022 may still carry some gap, so the cap isn't gone as a factor. But for a buyer comparing listings this fall, the cap is no longer the main thing to check. The exemptions are.
What Leaves With the Seller
Exemptions belong to an owner who qualifies, not to the house. Here is what can be built into a listing's tax figure in 2026, based on the Comptroller, the Bexar Appraisal District, and the City of San Antonio:
| What's in the seller's figure | Amount or effect | Applies to | Does a buyer get it automatically? |
|---|---|---|---|
| General school homestead exemption | $140,000 off taxable value | School district taxes | No. The buyer qualifies and applies on their own |
| Over-65 or disabled school exemption | Additional $60,000 off taxable value | School district taxes | No. The buyer must qualify personally |
| City over-65 exemption | $85,000 off taxable value | City of San Antonio taxes | No. The buyer must qualify personally |
| Over-65 or disabled tax ceiling | Holds those taxes at the first year's level, apart from significant improvements | School, City of San Antonio, Alamo College District | No. It stays with the qualifying owner |
| 10% homestead appraisal limit | Limits yearly growth in appraised value | All taxing units | No. It starts the year after the buyer qualifies |
The $140,000 school exemption and the extra $60,000 for owners 65 and older or disabled both went up for the 2025 tax year, so they apply again in 2026. For an owner who qualifies for both, $200,000 of the home's value is exempt from school taxes. A buyer moving in as a primary residence can claim the general homestead exemption on their own. The over-65 pieces depend on who the owner is.
The Ceiling Is the First Line Item to Check
The ceiling is the exemption buyers tend to overlook, and it can open the widest gap. According to BCAD, an owner with the Age 65 & Older Exemption also gets a tax ceiling on school district taxes and on other taxing units, such as the City of San Antonio and the Alamo College District. Those taxes "will not increase as long as you live in the home and do not make any significant improvements." The ceiling holds those taxes at the amount paid in the first year the owner received the exemption.
Consider an owner who first qualified many years ago. Their school taxes could be held near a figure set before the 2022 and 2023 increases, and before more recent rate changes. Rates matter too. On September 17, 2026, the City of San Antonio adopted a FY2027 rate of 56.288 cents per $100 of taxable value, up from 54.159 cents. A ceiling protects its owner from rate increases like that one. A buyer who doesn't qualify pays the current rate on the full taxable value.
Here is the City exemption alone as an example. At the new City rate, the $85,000 over-65 exemption is worth about $478 a year in City taxes. That's simple arithmetic, $85,000 divided by 100 and multiplied by $0.56288, and it doesn't count the school exemption or the ceiling.
The ceiling can move, but only with the person who earned it. BCAD explains that a qualifying owner who buys a new homestead can transfer "the percentage of tax savings from your old home to your new one." The dollar amount does not transfer. So a buyer who is 65 or older and already has a ceiling may bring part of that benefit to a Stone Oak home after applying. A buyer without a ceiling starts at the full current rate.
The Calendar From Here
The timing makes this a live question this fall.
- October 2026. The Bexar County Tax Assessor-Collector's 2026 newsletter says 2026 tax statements start mailing in October 2026. For a sale closing now, that means the actual statement Paragraph 13 refers to is arriving.
- January 31, 2027. The same newsletter lists this as the last day to pay the full 2026 bill without penalty and interest if you're not on a payment plan. It notes the date moves to the next business day when needed.
- Your first exemption year. The Comptroller's 2025 law-change summary says a buyer who acquires a home after January 1 may receive the general homestead exemption for the applicable part of that tax year once qualified, as long as the previous owner did not receive the same exemption for that year. The general filing deadline is before May 1.
- Your first capped year. The 10% limit takes effect January 1 of the tax year after the owner qualifies for the homestead exemption. A buyer's appraisal growth isn't limited until then.
Not every taxing unit raised its rate this year. KENS5 reported that Bexar County Commissioners Court kept the county rate unchanged at $0.299999 per $100 for FY2026–27. School district and City taxes make up most of a Stone Oak bill, and those are the two the over-65 ceiling covers.
Comparing Two Stone Oak Listings
When I put two Stone Oak homes next to each other for a buyer, I set aside the listing's tax figure and rebuild the number from what will apply to that buyer.
- Look up the exemptions on the current account. The appraisal record shows which exemptions the seller has. An over-65 or disabled exemption tells you the listed taxes include benefits that end at the sale.
- Start from the 2026 appraised value. In a flat year, appraised value and market value for most homes should be fairly close. A large gap is a sign the cap is still holding the value down.
- Apply only the exemptions you qualify for. For most buyers, that's the general homestead exemption, after you file.
- Use the current rates. That means the City's FY2027 rate, the county's unchanged rate, and the school district's rate for 2026–27.
- Expect the proration to be adjusted. Paragraph 13 already allows for changed exemptions and a later correction when the actual statement arrives.
This post is general information, not tax or legal advice. Your exemptions and your bill depend on your own situation, so confirm the details with the Bexar Appraisal District, the tax office, or a qualified tax professional.
If you're weighing Stone Oak homes and want the seller's tax figure separated from what you'd actually owe, Lira Realty Group can go through the appraisal records and contract figures with you before you write an offer. Schedule a consultation.
