Dallas County Property Tax Exemptions: Homestead, Over-65, and Veteran Rules

Dallas County property tax exemptions reduce the taxable value of your home, and most owner-occupants qualify for at least one. The baseline is the general residence homestead exemption, which removes $140,000 of your home’s value from school district taxation. Homeowners who are 65 or older, disabled, or disabled veterans can stack additional exemptions on top, and some qualify for a total exemption that eliminates the tax bill entirely. All of these are filed with the Dallas Central Appraisal District (DCAD) using a single form.

The General Homestead Exemption

If you own your home in Dallas County and live in it as your principal residence on January 1 of the tax year, you qualify for the general residence homestead exemption. School districts must exempt $140,000 of your home’s appraised value from taxation under Tax Code Section 11.13(b).¹ A home appraised at $350,000 is taxed by the school district on only $210,000.

Other taxing units, including Dallas County government, the City of Dallas, and Dallas College, can adopt their own exemption of up to 20% of appraised value. These local-option amounts vary by entity and can change year to year, so check DCAD or your tax bill to see which apply to your property.²

Rental properties, vacation homes, and investment properties don’t qualify. You cannot claim a homestead exemption on more than one property in Texas or anywhere else.² If you bought the home after January 1, you can still receive the exemption for the portion of the year starting when you qualify, provided the prior owner did not already receive the same exemption for that year.

The 10% Appraisal Cap

A homestead exemption also limits how fast your appraised value can climb. Once the exemption is active, DCAD cannot increase appraised value by more than 10% per year, plus the value of any new construction or additions.³ In a year where market value jumps 25%, the appraisal district can only add 10% to last year’s capped value. Routine maintenance like a new roof or exterior paint does not count as an improvement that pushes the value above the cap.

Over-65 and Disability Exemptions

Homeowners who are 65 or older, or who meet the Social Security Administration’s definition of disability, receive an additional $60,000 school district exemption on top of the general $140,000. That shields $200,000 of appraised value from school taxation. Local taxing units can adopt their own additional dollar exemptions of at least $3,000 for over-65 or disabled homeowners.¹

The School Tax Ceiling

The year you first qualify for the over-65 or disability exemption, the school district calculates your tax bill. That dollar amount becomes a ceiling. The school district cannot charge you more than that in future years for as long as you own and live in the home, even if values or rates rise.⁴ The ceiling can drop in years when rates fall, but it will never exceed the original locked-in amount.

Adding a room, garage, or other improvement that raises the home’s value does bump the ceiling. The district applies the current tax rate to the added value and locks in a new, higher ceiling. Rebuilding after storm damage or a casualty does not trigger a recalculation unless the replacement is larger or built with higher-quality materials.⁴

If a homeowner with an over-65 or disability ceiling dies, a surviving spouse who is at least 55 can keep the ceiling by filing a tax ceiling certificate (Form 50-311) with DCAD.

Disabled Veteran Exemptions

Veterans with a service-connected disability rating from the Department of Veterans Affairs qualify for an exemption on one designated property, which does not have to be a homestead. Amounts are set by statute:

10% to 29% disability: up to $5,000 off assessed value
30% to 49%: up to $7,500
50% to 69%: up to $10,000
70% or higher: up to $12,000⁵

Veterans with a 100% disability rating, or a VA determination of individual unemployability, qualify for a total exemption from all property taxes on their residence homestead. The surviving spouse of a 100% disabled veteran keeps the total exemption as long as they do not remarry and continue to live in the home.⁶

Trusts and Inherited Homes

If your home is held in a living trust, the homestead exemption still applies, but only if the trust document meets Texas Property Code Section 41.0021. The trust must give the original owner the right to revoke it, to exercise a general power of appointment over the property, or to live in the home as a principal residence at no cost for life.⁷ The transfer deed must be recorded in Dallas County. If the trust document lacks these protections, the home can lose its homestead status. Check with an attorney before transferring.

Heirs who inherit a home without a formal title transfer can still claim the exemption. Texas defines heir property as a home acquired through a will, transfer-on-death deed, or intestate succession where at least one heir lives in it as a primary residence.² If your name is not on the recorded deed, your application needs a notarized affidavit of heirship, a copy of the prior owner’s death certificate, a recent utility bill for the property, and any available court records about ownership. Every other heir living in the home must sign an affidavit authorizing the application. If co-heirs are uncooperative or unreachable, probate may be the faster path to clear title.

How to Apply

One form covers them all. The Residence Homestead Exemption Application, Form 50-114, is used for the general homestead, over-65, disability, and disabled veteran exemptions. File it once. If the chief appraiser approves it, you don’t reapply each year unless your circumstances change or DCAD requests it.⁸

You must include a copy of your Texas driver’s license or state-issued ID, and the address on it must match the property address. If it doesn’t match, the form has a section to request a waiver from the chief appraiser.⁸ Updating your ID first avoids delay, but a mismatch is not an automatic denial.

Specialized exemptions need additional proof:

Disability exemption: a disability determination letter from the Social Security Administration, or a completed physician’s statement if you aren’t receiving Social Security Disability.
Disabled veteran exemption: a current VA letter showing your disability percentage and effective date.⁹
Heir property: the heirship affidavit, death certificate, utility bill, and co-heir authorizations described above.

DCAD accepts applications online through its website, by mail, or in person at 2949 North Stemmons Freeway, Dallas, Texas 75247.¹⁰ Walk-in submissions get a date-stamped receipt, which helps if a filing date is ever disputed.

Deadlines and Late Filing

The regular deadline is April 30 of the tax year you want the exemption to apply to.¹¹ Filing by then ensures the exemption shows up on the tax bill that goes out in October.

If you miss it, you can still file a late application up to two years after the regular deadline. The same two-year window applies to late over-65 and disability filings.¹¹ When a late application is approved, DCAD corrects the roll retroactively and the tax office may issue a refund for the overpayment. Keep records of any refund; if you previously itemized and deducted those taxes on a federal return, the refund can be taxable income.

If DCAD Denies Your Application

You can protest a denial to the Appraisal Review Board (ARB) by filing Form 50-132, the Property Owner’s Notice of Protest, and marking that you are protesting a denial or modification of exemption.¹² At the hearing, bring the documents that prove eligibility: deed, matching ID, VA letters, Social Security correspondence, heirship affidavits. Concrete evidence does the work. If the ARB rules against you, further appeal to district court or binding arbitration is available depending on the dispute.

Tax Deferral When the Bill Is Still Too High

Homeowners who are 65 or older, disabled, or qualified disabled veterans can defer property taxes entirely by filing a deferral affidavit with DCAD. Collection stops, and the county cannot foreclose on the home for unpaid taxes while the deferral is active.¹³ A tax lien stays on the property and interest accrues at 5% per year. When you sell, move out, or pass away, deferred taxes and accumulated interest all come due. For a long-term homeowner on fixed income this can be a lifeline, but interest adds up quickly on large balances.

1
State of Texas. Texas Tax Code 11.13 – Residence Homestead
2
Texas Comptroller of Public Accounts. Property Tax Exemptions
3
State of Texas. Texas Tax Code 23.23 – Limitation on Appraised Value of Residence Homestead
4
State of Texas. Texas Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled
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State of Texas. Texas Tax Code 11.22 – Disabled Veterans
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State of Texas. Texas Tax Code 11.131 – Residence Homestead of 100 Percent or Totally Disabled Veteran
7
State of Texas. Texas Property Code 41.0021 – Homestead in Qualifying Trust
8
Texas Comptroller of Public Accounts. Residence Homestead Exemption Application
9
Texas Veterans Commission. Property Tax Exemptions Available to Veterans Per Disability Rating
10
Dallas Central Appraisal District. DCAD – Contact Us
11
Texas Comptroller of Public Accounts. Residence Homestead Exemptions
12
Texas Comptroller of Public Accounts. Appraisal Protests and Appeals
13
State of Texas. Texas Tax Code 33.06 – Deferred Collection of Taxes on Residence Homesteads