Owning a home in Texas is exciting, but it also means navigating property taxes. One way to ease that burden is the residence homestead exemption. The Texas Legislature requires school districts to give homeowners a $100,000 exemption on their principal residence and allows counties and cities to adopt additional exemptions of up to 20 percent of the home’s appraised value. This exemption can significantly lower your taxable value; for example, a home appraised at $300,000 will be taxed as if it were worth $200,000 when the $100,000 exemption is applied.
If you own a home in Hidalgo County, you may have heard that you need to file your homestead exemption. In Vlog 25 on our YouTube channel (THE RGV’s STRONGEST REALTOR®), I walk viewers through the online process. Below is a written companion to that video along with answers to common questions and links to other helpful blog posts.
Why file a homestead exemption?
- Lower property taxes. Qualifying homeowners pay taxes on a smaller portion of their home’s value. The general exemption mandated for school districts is $100,000, and many local taxing units offer additional reductions.
- Appraisal cap. A homestead exemption limits increases in your home’s assessed value to 10 percent per year. This “homestead cap” protects you from sudden spikes in property taxes.
- One‑time application. You only need to file once. Forms are free and submitted to your county appraisal district.
Who qualifies?
You may claim a homestead exemption if you:
- Own and occupy the property as your principal residence. The home must be designed for human residence (including manufactured homes) and you must live there as of January 1 of the tax year.
- Are listed on the deed and have a Texas driver’s license or personal ID that matches the property address. A license to carry or election ID card is not sufficient.
Additional exemptions exist for homeowners over 65, persons with disabilities and disabled veterans. These exemptions can provide extra tax savings and may include a tax ceiling that freezes the school tax portion of your bill. Spouses of deceased homeowners may continue to receive these benefits when certain conditions are met. Veterans and their surviving spouses can receive partial or full exemptions based on disability rating.
Documents you’ll need
- Texas driver’s license or ID card showing the homestead address (must be issued by the Department of Public Safety).
- Supporting documents for special exemptions, such as proof of age (for the over‑65 exemption), disability letters, or veteran‑status paperwork.
Keep in mind that uploaded files are deleted after processing for privacy.
Filing your homestead exemption online in Hidalgo County
The Hidalgo County Appraisal District (CAD) offers an online form that makes filing quick and convenient. Here’s a step‑by‑step guide based on the walkthrough in Vlog 25:
- Visit the official Hidalgo CAD website. Look for a link titled “Residential Homestead Application” or “E‑File Exemption.”
- Search for your property. Enter your account number or address to locate your property record. Confirm that the property information matches your home.
- Select the type of exemption. Choose the general residence homestead exemption and any additional exemptions (over‑65, disability, veteran) for which you qualify.
- Fill out your personal information. Provide your name, mailing address, and contact details. When the application asks for your driver’s license number, ensure the address on your license matches the property address.
- Upload required documents. Attach a scanned copy of your Texas driver’s license and any additional proof needed for age or disability exemptions.
- Electronically sign and submit. Review your entries, sign digitally, and submit the form. Filing is free, and you should receive confirmation from the appraisal district once your application is processed.
Pro tip: If you purchased your home this year and the previous owner did not claim the homestead exemption, you may file immediately and receive the exemption for the remaining portion of the tax year.
After filing: what happens next?
- Review period. The appraisal district may take several weeks to process your application. They will verify your documents and confirm that you have not claimed another homestead exemption elsewhere.
- Tax bill adjustment. Once approved, your homestead exemption will appear on your property’s tax statement. Because there is a $100,000 mandatory school exemption and potential local exemptions, your bill should drop accordingly.
- No annual re‑filing. After approval, you do not need to reapply unless requested by the chief appraiser or your eligibility changes.
Additional resources
Looking for more guidance on the homeownership journey? Explore these posts:
- Understanding Your Homeownership Readiness – Part 1: assess your financial readiness, improve your credit score and explore first‑time buyer programs.
- Finding the Perfect Home – Part 2: define your needs and wants, and learn how a REALTOR® can streamline your search.
- Navigating the Homebuying Process – Part 3: prepare offers, plan inspections and understand appraisals and financing.
- Closing the Deal – Part 4: learn about closing costs and final steps.
- Life as a New Homeowner – Part 5: celebrate your purchase, discover home maintenance tips and learn how to build equity.
- Unlocking the South Texas Real Estate Market: get market trends and investment insights.
Questions? We’re here to help!
As your local REALTOR® in the Rio Grande Valley, I’m committed to making the homeownership journey seamless and rewarding. Whether you need assistance filing your homestead exemption or guidance through the entire buying process, I’m just a call or click away.
Get in touch:
• Cell: 956‑862‑1556
• Mobile: (956) 476‑2925
• martinezrgvhomes.com
• Schedule a consultation via Calendly
Agent: Luciano Martinez, REALTOR® – RE/MAX Platinum
✨ Experience the Martinez Difference! ✨
