Hays County Property Tax Exemptions: Homestead, Over-65, Veterans

Homeowners in Hays County can cut their property tax bills through a set of exemptions administered by the Hays Central Appraisal District. The general residence homestead exemption alone removes $140,000 from a home’s taxable value for school district taxes, and additional programs stack on top for people 65 and older, homeowners with disabilities, and disabled veterans.¹ Knowing which Hays County property tax exemptions you qualify for, what to file, and when to file it is the difference between the tax bill you owe and the one you overpay.

General Residence Homestead Exemption

Any homeowner who uses a property as a primary residence can claim the general residence homestead exemption. For school district taxes, this exemption subtracts $140,000 from the home’s appraised value before the tax rate is applied.² On a home appraised at $350,000, only $210,000 is subject to the school district rate.

Other taxing units in Hays County, including the county, cities, and special districts, may adopt an optional homestead exemption of up to 20 percent of a home’s appraised value. If 20 percent works out to less than $5,000, the exemption still comes in at a $5,000 floor.² Whether a specific taxing unit has adopted the optional exemption can change from year to year, so check the Hays CAD site or your tax statement for the exemptions currently applied to your account.

The 10 Percent Appraisal Cap

With a homestead exemption in place, state law limits how fast your taxable value can climb. The appraised value on your homestead cannot rise more than 10 percent per year over the prior year’s appraised value, no matter what the market does.³ New improvements such as an addition or a pool are added at full market value on top of the cap, but the existing structure stays protected.⁴

The cap only holds while you keep a homestead exemption on the property. Let it lapse and the appraisal district can reset your appraised value to full market value.

Over-65 and Disabled Person Exemptions

Homeowners who are 65 or older, or who have a qualifying disability, get an additional $60,000 off appraised value for school district taxes on top of the standard $140,000 homestead exemption. That brings the combined school district reduction to $200,000. Other taxing units that adopt the optional over-65 or disabled exemption must offer at least $3,000 in additional value reduction, and many adopt higher amounts.²

You can qualify under either the age 65 rule or the disability rule, but not both at the same time on the same property.

School District Tax Ceiling

The most valuable piece of these exemptions is often the school district tax ceiling. Once you qualify for the over-65 or disabled person exemption, the school district freezes your school tax amount at whatever it was in the year you first qualified. Your school taxes will not go up as long as you own and live in that home, even if rates rise or the home’s value climbs.⁵ A significant improvement like a room addition raises the ceiling by the tax attributable to that improvement, but ordinary market appreciation does not.

Transferring the Ceiling to a New Home

If you move within Texas, the school tax ceiling follows you in adjusted form. The new school district calculates a proportional ceiling based on the relationship between your actual taxes and what your taxes would have been without the freeze at your old home. Before you move, request a written certificate from the chief appraiser in the county where your current home is located. That certificate carries the figures your new appraisal district needs to calculate the transferred ceiling.⁵

Disabled Veteran Exemptions

Texas offers two separate property tax programs for disabled veterans. They are commonly confused on applications, so it helps to know which one you’re actually claiming.

Partial Exemption Based on Disability Rating

Veterans with a service-connected disability rating from the Department of Veterans Affairs receive a partial exemption on a tiered schedule:⁶

10 to 29 percent rating: up to $5,000 off assessed value
30 to 49 percent rating: up to $7,500 off assessed value
50 to 69 percent rating: up to $10,000 off assessed value
70 percent or higher: up to $12,000 off assessed value

This exemption applies to one designated property. The surviving spouse of a qualifying veteran can continue receiving it at the same amount as long as the spouse does not remarry.⁶

Total Exemption for 100 Percent Disabled Veterans

A separate provision removes property taxes entirely on the residence homestead of a veteran with a 100 percent disability compensation rating or an individual unemployability determination from the VA.¹ This is a full exemption, not a partial reduction. If the veteran dies, the surviving spouse keeps the total exemption on the same home as long as the spouse remains unmarried and continues to live there.⁷

Surviving Spouses of Service Members Killed in Action

The surviving spouse of a service member killed or fatally injured in the line of duty qualifies for a total exemption on the full appraised value of a residence homestead, provided the spouse has not remarried. If that surviving spouse later moves to a different home, the dollar amount of the exemption carries over to the new property.⁸

Who Qualifies for a Homestead Exemption

Three requirements apply to every residence homestead exemption in Hays County. You must own the property (partial ownership counts), use it as your principal residence, and hold a Texas driver’s license or state-issued ID with an address matching the property.³ Business entities such as corporations and partnerships cannot claim a homestead exemption.

You can only claim the exemption on one property. If you own more than one home, you pick which is your principal residence. If you buy a home after January 1, you can still receive the general homestead exemption for the portion of the tax year during which you qualify, provided the previous owner did not already receive the same exemption for that year.¹

Properties Held in a Trust

A home transferred into a revocable living trust can still qualify, but the trust has to meet specific requirements. The trust instrument must give the settlor or beneficiary the right to revoke the trust, or to use and occupy the property as a principal residence at no cost for the settlor’s or beneficiary’s lifetime. The trust also has to be recorded in the real property records of the county where the home sits.⁹ Irrevocable trusts create a harder path and typically need to reserve the grantor’s right to occupy the property. If your home is in a trust and you are unsure whether it qualifies, bring the trust document to the appraisal district before filing.

How to Apply

The primary application is Form 50-114, “Application for Residence Homestead Exemption,” available on the Texas Comptroller’s site and the Hays Central Appraisal District site.⁷ The same form covers the general homestead, over-65, disabled person, and disabled veteran exemptions. Fill out the sections that apply and include your property’s account number, which appears on previous tax statements or through a lookup on the Hays CAD site.

Include the following with your application:

A Texas driver’s license or state-issued ID showing an address that matches the property.³
A current VA disability letter showing your service-connected disability rating (disabled veterans only).
Proof of age if you are applying for the over-65 exemption. Your driver’s license usually satisfies this, though the appraisal district may ask for a birth certificate if the date of birth is unclear.

You can submit the application in person at the Hays Central Appraisal District office at 21001 North IH 35 in Kyle, by mail to the same address, or through the online forms portal on the Hays CAD site.¹⁰ The online option lets you upload the PDF and scanned supporting documents. Once the appraisal district receives your application, the chief appraiser reviews it and a determination usually comes within 90 days. If more information is needed, the district will reach out before deciding.

Filing Deadlines and Late Applications

The standard filing deadline is April 30 of the tax year you want the exemption for. Filing by that date puts the exemption on your original fall tax bill.⁷

Miss April 30 and you still have options. For the general homestead, over-65, and disabled person exemptions, you can file a late application up to two years after the standard filing deadline. Disabled veterans claiming the 100 percent total exemption have up to five years after the delinquency date. A surviving spouse of a disabled veteran has up to two years after the delinquency date.⁷

For the over-65 and disabled person exemptions specifically, you can also apply retroactively if you met the qualifications in a prior year but did not file at the time. This can produce a refund of taxes you overpaid.

If Your Exemption Application Is Denied

If the appraisal district denies or modifies your exemption, you can protest to the Hays County Appraisal Review Board. File a Notice of Protest (Form 50-132) by May 15 or within 30 days of the date the appraisal district delivered notice of its decision, whichever is later. You can request an informal meeting with appraisal district staff first. If that doesn’t resolve it, the Appraisal Review Board holds a formal hearing where you and the chief appraiser both present. If you disagree with the board’s ruling, you can appeal to the state district court in Hays County within 60 days of receiving the written order.

The Five-Year Verification

Texas law requires the chief appraiser to verify every homestead exemption at least once every five years. In Hays County, that typically arrives as a confirmation letter asking you to verify the property is still your primary residence.¹⁰ Respond within the 30-day deadline stated in the letter. Miss the deadline and the appraisal district can terminate your exemption at the end of that tax year, forcing you to file a new application the following year. Homeowners with over-65, disabled person, or 100 percent disabled veteran exemptions are generally not terminated for a late response, but responding on time avoids any complication.

1
Texas Comptroller of Public Accounts. Property Tax Exemptions
2
State of Texas. Texas Code Tax Code – Residence Homestead
3
Hays Central Appraisal District. Exemption Information and Requirements
4
State of Texas. Texas Tax Code TAX 23.23
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State of Texas. Texas Code Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled
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State of Texas. Texas Code Tax Code 11.22 – Disabled Veterans
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Texas Comptroller of Public Accounts. Residence Homestead Exemption Application
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State of Texas. Texas Code Tax Code 11.133 – Residence Homestead of Surviving Spouse of Member of Armed Services Killed in Line of Duty
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State of Texas. Texas Property Code PROP 41.0021
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Hays Central Appraisal District. Hays Central Appraisal District