Understanding Homestead Exemptions in Hill County

A homestead exemption is one of the most valuable property tax benefits available to Texas homeowners. If you own and live in your home as your primary residence, you may qualify for an exemption that reduces the taxable value of your property and may lower your annual property tax bill.  

For many homeowners, a homestead exemption not only provides tax savings but also limits how quickly the taxable value of a qualifying homestead can increase from year to year.

As local real estate professionals with Real Broker, LLC, Jay & Nancy Jolly help buyers understand how homestead exemptions fit into the overall cost of homeownership in Hill County.

A homestead exemption removes a portion of your home's taxable value, reducing the amount of property taxes you owe. The exact savings depend on your home's value, the taxing entities involved, and any additional exemptions for which you qualify.

Generally, you may qualify for a Texas residence homestead exemption if:

You have an ownership interest in the property.
You use the property as your principal residence.
You do not claim a residence homestead exemption on another property for the same year.
You meet the documentation and eligibility requirements established by Texas law and the appraisal district.

A qualifying residence may include a house, condominium or manufactured home. A residence homestead may also include land associated with the home—generally up to 20 acres—when the applicable ownership and residential-use requirements are met.

Certain circumstances, including heir property ownership, manufactured homes and temporary absences from the residence, have additional rules. Eligibility is determined by the appraisal district under Texas law.

General Residence Homestead

Texas law requires school districts to provide a $140,000 general residence homestead exemption for qualifying homeowners.

For example, if a qualifying residence has an appraised value of $300,000, the $140,000 school-district exemption would generally reduce the value subject to school-district taxation to $160,000, before considering any other applicable exemptions.

Other local taxing units may offer additional residence homestead exemptions. These exemptions can vary by taxing entity, so the total benefit for a Hill County homeowner depends on the taxing units that apply to the property.

Important: A homestead exemption reduces the value used to calculate taxes for the applicable taxing unit. It does not mean that the home's market value or appraised value itself is reduced by $140,000.

Texas homeowners who are age 65 or older or disabled may qualify for additional residence homestead property-tax benefits.

For school-district taxes, Texas law provides an additional $60,000 residence homestead exemption for a qualifying person who is age 65 or older or disabled. This exemption is in addition to the $140,000 general residence homestead exemption for school-district taxes.

Other local taxing units may also offer an additional exemption for homeowners who are age 65 or older or disabled. The amount and availability of these local-option exemptions can vary by taxing unit.

For the disability exemption, Texas uses a specific statutory definition of disability. Receiving disability benefits from another program does not automatically establish eligibility for this property-tax exemption. Hill CAD may require documentation supporting the applicant's eligibility.

Qualifying homeowners may also receive a school-district tax limitation, commonly called a tax ceiling or tax freeze. This is separate from the homestead exemption itself and generally limits school-district taxes on the qualifying residence homestead, subject to Texas law.

Texas provides several property-tax exemptions for qualifying disabled veterans. Eligibility and the amount of the exemption depend on the veteran's service-connected disability rating and other requirements under Texas law.

For the standard disabled-veteran exemption, the maximum exemption amounts are:

10%–29% disability rating: up to $5,000
30%–49%: up to $7,500
50%–69%: up to $10,000
70%–100%: up to $12,000

This exemption may generally be applied to any one property owned by the qualifying disabled veteran; it is not limited to a residence homestead. Certain veterans may qualify for a $12,000 exemption under additional circumstances specified by Texas law.

A different exemption applies to certain veterans with a 100% service-connected disability. A disabled veteran who has been awarded 100% disability compensation due to a service-connected disability and has a 100% disability rating or a determination of individual unemployability from the U.S. Department of Veterans Affairs may qualify for an exemption of the total appraised value of the veteran's residence homestead.

Other exemptions may apply to certain donated residence homesteads and qualifying surviving spouses. Eligibility should be confirmed with the Hill County Appraisal District.

A surviving spouse may qualify for property-tax benefits if the deceased spouse was:

A qualifying 100% disabled veteran;
A U.S. armed services member killed or fatally injured in the line of duty;
A qualifying first responder killed or fatally injured in the line of duty; or
A veteran who died as a result of certain qualifying service-connected conditions or diseases recognized under Texas law.

Some of these provisions can provide an exemption of the total appraised value of the residence homestead. Requirements vary, but certain surviving-spouse exemptions require that the surviving spouse has not remarried and that other statutory conditions are satisfied.

Texas law also provides continuation of certain property-tax benefits for some surviving spouses of homeowners who qualified for an age 65 or older exemption, when applicable requirements are met.

Because surviving-spouse exemptions have different eligibility requirements, homeowners should confirm the applicable exemption and documentation requirements with the Hill County Appraisal District.

One of the most valuable protections available to qualifying homeowners is the homestead cap.  

Texas law provides an appraisal limitation for qualifying residence homesteads that can limit how quickly the property's appraised value increases from one year to the next.

Generally, the appraised value of a qualifying residence homestead for a tax year cannot exceed the lesser of:

The property's current market value; or
The previous year's appraised value plus 10%, plus the market value of any qualifying new improvements.

The limitation applies to the property's appraised value—not its market value or property tax bill. A home's market value may increase by more than 10% in a year, and changes in tax rates, exemptions or other factors can still affect the amount of property tax owed.

The appraisal limitation generally takes effect January 1 of the tax year following the first tax year in which the owner qualifies the property for a residence homestead exemption.

Why this wording matters

This avoids three common misconceptions:

10% cap ≠ market-value cap
10% cap ≠ taxable-value guarantee
10% cap ≠ property-tax-bill cap

It also correctly handles new improvements, which Texas law specifically adds to the calculation.

Residence homestead exemption applications for property in Hill County are filed with the Hill County Appraisal District (Hill CAD). There is no fee to file the exemption application with the appraisal district.

Applicants generally need:

A completed Residence Homestead Exemption Application (Form 50-114).
A copy of the applicant's Texas driver's license or state-issued personal identification certificate, unless an exception under Texas law applies.
The property address and other ownership and occupancy information requested on the application.
Any additional affidavits or supporting documentation required for the exemption being claimed.

The address on the applicant's driver's license or state-issued identification generally must correspond to the residence-homestead address, subject to exceptions provided by Texas law. Certain situations—including heir property, manufactured homes, some disability claims and ownership interests not reflected in the deed—may require additional documentation or affidavits.

Hill CAD provides the official homestead exemption forms free of charge. Property owners should use the current forms and instructions provided by Hill CAD or the Texas Comptroller rather than paying a third party simply to obtain an exemption application.

If you own and occupy your home as your principal residence on January 1, the regular filing deadline for a residence homestead exemption is generally before May 1.

If you purchase and begin occupying a qualifying home after January 1, you may be able to receive the general residence homestead exemption for the applicable portion of that same tax year if the previous owner did not receive the same exemption for that year. For this situation, Texas law generally allows the application to be filed before the first anniversary of the date you acquired the property.

Texas law also provides certain late-filing provisions for residence homestead exemptions, so homeowners who missed an earlier deadline should not automatically assume they have lost the exemption.

If you recently purchased a home, verify your eligibility and filing deadline with the Hill County Appraisal District (Hill CAD) rather than assuming the previous owner's exemption transfers to you.

In most cases, no. Once a residence homestead exemption is approved, you generally do not need to submit a new application each year as long as you continue to qualify.

You may need to file a new application if:

The Hill County Appraisal District requests one to confirm your continued eligibility.
You move to a new residence and want to claim a homestead exemption on the new property.
Your ownership or eligibility changes.
You become eligible for an additional exemption that is not automatically applied.

If your right to an exemption ends, Texas law generally requires you to notify the appraisal district in writing.

Important: If Hill CAD sends you a notice requesting a new application or additional information, do not ignore it. Follow the instructions and deadlines provided by the appraisal district.

This also aligns with the Comptroller's current homeowner guidance that an approved homestead exemption generally continues without annual reapplication.

A residence homestead exemption may end or need to be updated if:

You no longer own the property.
The property is no longer your principal residence, subject to exceptions allowed by Texas law for certain temporary absences.
You establish and claim a residence homestead exemption on another property.
Your eligibility for a particular exemption changes.
You do not provide information properly requested by the appraisal district to confirm continued eligibility.

If your entitlement to an exemption ends, Texas law generally requires you to notify the appraisal office in writing before May 1 of the following year.

The Hill County Appraisal District may also review an existing residence homestead exemption to confirm that the homeowner continues to qualify. If you receive a request or notice from Hill CAD concerning your exemption, review it promptly and follow the instructions provided.

One nuance is worth preserving: moving away does not always immediately terminate a homestead exemption. Texas guidance recognizes certain temporary absences when the owner intends to return, with special provisions for military service and stays in facilities related to health, infirmity or aging.

Does a homestead exemption automatically transfer when I buy a home?
No. A seller's residence homestead exemption does not simply transfer to the buyer. A new owner must establish their own eligibility and file the appropriate application with the appraisal district. A qualifying buyer who acquires and occupies a home after January 1 may be eligible for a general residence homestead exemption for the applicable portion of that same tax year.

Does it cost anything to apply for a homestead exemption?
No. There is no fee to file a residence homestead exemption application with the Hill County Appraisal District.

Do I have to reapply every year?
Generally, no. Once approved, a residence homestead exemption normally continues as long as you remain eligible. However, Hill CAD may request a new application or information to verify continued eligibility.

Can I claim a residence homestead exemption on more than one home?
Generally, no. A person may not receive a residence homestead exemption on more than one property for the same year.

What if I buy my home after January 1?
You may still qualify for the general residence homestead exemption for the applicable portion of that tax year if you meet the requirements under Texas law. Do not assume you must wait until the following January to apply.

Hill County Appraisal District (Hill CAD)
Apply for exemptions, review property records and find Hill County appraisal information.

Hill CAD Forms & Applications
Access Hill CAD's current exemption forms and applications.

Texas Comptroller — Property Tax Exemptions
Review statewide information about residence homestead, age 65 or older, disability, disabled-veteran and other property-tax exemptions.

Texas Comptroller — Residence Homestead Exemption Application (Form 50-114)
Access the state's official residence homestead exemption application and instructions.

Want to understand how your homestead exemption fits into the bigger property-tax picture?
Read our Hill County Property Tax Guide →