The homestead exemption in Texas allows you to receive a property tax deduction only on your principle residence in Texas. If a person has two or more properties in which they possess ownership interest in Texas, you will only be able to receive the homestead exemption on one of the properties. As it relates to tax savings, the homestead exemption will extend to the school district tax portion as well which could be significant. At times, I get the question on whether or not if someone co-sign a loan for another individual would they still qualify for the homestead? The awnser is "no" unless the co-signer agrees to forfeit their right to the residential homestead. The co-signer must keep in mind that they will need to make a choice on which property they decide to homestead because you can only homestead one of them. You must own the property Jan 1 of the year you are claiming the exemption.
Other Homestead Facts
in the city homestead must be less than 10 acres to qualify
Any creditor other than the mortgage holder, note holder or taxing authority will not be allowed to force you to sale your property to satisfy a debt.
So as you can see that the homestead gives you a little more than just a tax break.