I am constantly amazed by how many RGV homeowners are not claiming their homestead exemption. It is literally free money. No cost to apply, significant annual savings, and it takes about 15 minutes. If you own your primary residence in Hidalgo County, Cameron County, or anywhere in Texas and have not filed, stop reading this and go do it right now. Then come back and I will explain why it matters.
$140,000
Mandatory school district homestead exemption (2026)
What a Homestead Exemption Does
A homestead exemption reduces the taxable value of your primary residence. Texas law requires school districts to grant a $140,000 exemption. This was increased from $40,000 to $100,000 by SB 2 in 2023, and further increased to $140,000. Many counties and cities offer additional exemptions on top of that.
On a $300,000 home in Hidalgo County with a school tax rate around 1.05%, the $140,000 school exemption alone saves you about $1,680 per year. Add in county and city exemptions and you could be looking at $2,000 or more in annual savings. Every year. For free.
Types of Homestead Exemptions
General Residence Homestead
- $140,000 off taxable value for school district taxes
- Additional exemptions from your county, city, and special districts (varies by jurisdiction)
- A 10% cap on annual assessed value increases for school taxes
Over-65 Exemption
If you are 65 or older, you get everything above plus:
- An additional $10,000 school district exemption
- A tax freeze on school district taxes, locked at the year you turn 65
- Many counties and cities also freeze taxes for seniors
- If you move, you can transfer your tax ceiling to a new homestead (the ceiling adjusts proportionally based on the new home's value)
This Is Huge for Retirees
The senior tax freeze means your school taxes never go up again, no matter how much your property value increases. If you are an RGV retiree thinking about downsizing, know that your tax ceiling transfers with you under Tax Code Section 11.26(g).
Disabled Person Exemption
Same benefits as the over-65 exemption. You must meet Social Security Administration disability standards.
Disabled Veteran Exemption
- 10-29% disability: $5,000 exemption
- 30-49% disability: $7,500 exemption
- 50-69% disability: $10,000 exemption
- 70-100% disability: $12,000 exemption
- 100% disabled or unemployable: Complete exemption from all property taxes
We have a significant veteran population in the RGV. If you or your spouse served and have any VA disability rating, you should absolutely be claiming this.
How to Apply
The process is simple:
- Download Form 50-114 from the Texas Comptroller, or get the application from your county appraisal district website
- Fill in your property address, account number, and personal information
- Include your Texas driver's license or ID number (must match the homestead address)
- For senior, disabled, or veteran exemptions, include proof of eligibility
- Submit online, by mail, or in person to HCAD or Cameron CAD
Deadline Alert
File by April 30 to have the exemption apply to the current tax year. If you miss it, you can still apply — Texas Tax Code Section 11.431 allows retroactive applications for up to two years. So even if you missed last year, file now and you may recoup those savings.
Common Mistakes I See
- Never applying at all: The number one mistake. Thousands of eligible RGV homeowners are not claiming their exemption.
- Wrong address on ID: Your Texas driver's license must show your homestead address. Update it if you have moved.
- Not updating after a move: If you bought a new home, you need to file a new homestead exemption. It does not transfer automatically.
- Missing senior or veteran exemptions: Many people claim the basic homestead but forget to add the over-65 or disabled veteran exemption when they become eligible.
- Not knowing about retroactive filing: If you missed a year or two, you can still file retroactively under Tax Code Section 11.431.
Check Your Exemption Status
Not sure whether you have a homestead exemption filed? Check your Notice of Appraised Value — it will list any active exemptions. You can also look up your property on the HCAD website or Cameron CAD website to verify.
Homestead exemptions are the single easiest way to lower your property tax bill. No protest needed, no hearing, no evidence to gather. Just a simple application that saves you real money every single year. If you do not see an exemption on your account, get that application in today.