If you are 65 or older and own your home in Texas, property tax exemptions for seniors can take a large bite out of your bill and, in many cases, freeze it in place for the rest of the time you live there. The headline benefits are an extra $60,000 school district exemption on top of the $140,000 general homestead exemption, a permanent cap on your school taxes, optional local exemptions from your county and city, and the ability to defer the entire bill if you need to. You claim them by filing one form with your county appraisal district.
What the Over-65 Exemption Takes Off Your School Tax Bill
Every Texas homeowner receives a $140,000 general homestead exemption that is subtracted from the home’s appraised value before school taxes are calculated.1State of Texas. Texas Tax Code 11.13 – Residence Homestead Once you turn 65, you qualify for an additional $60,000 exemption, bringing your total school district exemption to $200,000.2Texas Comptroller of Public Accounts. Property Tax Exemptions
In practical terms, a home appraised at $350,000 would be taxed by the school district on only $150,000 of value. A home appraised at $200,000 or less owes nothing to the school district at all. The exemption amounts increased substantially in 2023, so if you qualified years ago and have not looked at your account since, your current bill may not reflect the full benefit.
The School Tax Ceiling That Freezes Your Bill
The over-65 exemption carries a second, often more valuable protection with it. Under Section 11.26, the dollar amount of school district taxes you owe in your qualifying year becomes a ceiling. The amount cannot go up even if your home’s market value climbs or the school district raises its tax rate.3State of Texas. Texas Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled The ceiling stays with you for as long as you own and live in the home.
Improvements that add new value will trigger a recalculation. Adding a bedroom, converting a garage into living space, or installing an in-ground pool all count. Routine maintenance does not. Replacing a roof with similar materials, repairing plumbing, repainting, or swapping out an old HVAC unit are treated as preserving existing value, not creating new value.3State of Texas. Texas Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled If you are replacing something old with an equivalent, your ceiling stays put.
Local Exemptions and Ceilings From Your County and City
School taxes are only one line on your bill. Counties, cities, hospital districts, water districts, and junior college districts also tax your property, and each can offer its own homestead exemption. Under Section 11.13(n), any taxing unit may adopt a local homestead exemption of up to 20 percent of appraised value, with a minimum of $5,000.2Texas Comptroller of Public Accounts. Property Tax Exemptions Counties that collect a farm-to-market road or flood control tax must provide at least a separate $3,000 homestead exemption under Section 11.13(a).
On top of those, local taxing units can adopt an additional exemption specifically for homeowners 65 and older under Section 11.13(d). Amounts vary from one jurisdiction to the next. Some offer $25,000 or more; others offer less or nothing at all.
Counties, municipalities, and junior college districts can also adopt their own tax ceilings for seniors under Section 11.261. These work like the school ceiling, freezing the senior’s bill at the first qualifying year’s amount, but they are optional rather than automatic.4State of Texas. Texas Tax Code 11.261 Call your county appraisal district to find out which local exemptions and ceilings apply where you live.
Deferring Your Property Taxes
If your bill is still unmanageable after exemptions and ceilings, Section 33.06 lets any homeowner 65 or older file an affidavit with the chief appraiser to postpone collection of property taxes on the home for as long as they own and occupy it.5State of Texas. Texas Tax Code 33.06 – Deferred Collection of Taxes on Residence Homestead of Elderly or Disabled Person or Disabled Veteran This covers every taxing unit, not just schools. While the deferral is active, no taxing unit can sue you for delinquent taxes or force a tax sale.
The trade-off: deferred taxes accrue interest at 5 percent per year, and a tax lien remains on the property.6Texas Comptroller of Public Accounts. Penalty and Interest Chart When you move out, sell, or pass away, the full balance of deferred taxes plus interest becomes due within 180 days. A deferral works best as a short- or medium-term bridge; over many years, the accumulated balance can grow large.
Who Qualifies
The rules are simple. You must be 65 or older, own the home, and live in it as your primary residence. Eligibility begins on your 65th birthday, not at the start of the next tax year.1State of Texas. Texas Tax Code 11.13 – Residence Homestead You can claim these benefits on only one property. A vacation home or rental does not qualify, only the home where you actually live.
If you qualify for both the over-65 exemption and the disabled person exemption, you have to pick one for school district taxes; they cannot be stacked.7Office of the Texas Governor. Tax Exemptions The over-65 exemption usually wins because it brings the school tax ceiling with it, but compare the dollar amounts for your situation before choosing.
A home held in a living trust still qualifies as long as the person claiming the exemption is a trustor or beneficiary and lives there as their principal residence. The application requires you to affirm that you are not claiming a homestead exemption on any other property, in Texas or any other state.2Texas Comptroller of Public Accounts. Property Tax Exemptions A senior who inherited the home but never had a deed recorded can also qualify as an heir property owner by filing additional documentation of ownership with the application.
How to Apply and When
You file Form 50-114, the Residence Homestead Exemption Application, with the chief appraiser in the county where the property sits.8Texas Comptroller of Public Accounts. Residence Homestead Exemption Application Check the box for the over-65 exemption, provide the property’s legal description, and attach a copy of your Texas driver’s license or state-issued ID. The address on the ID should match the property; if it does not, you can ask the chief appraiser for a waiver on the form.
The standard deadline is April 30 of the tax year. File by then and the exemption applies to that year’s bill. If you miss it, you still have until one year after your 65th birthday to file for the year you first qualified. Section 11.431 also allows late homestead exemption applications up to two years after the taxes on the property became delinquent.9State of Texas. Texas Tax Code 11.431 If a late application is approved after you have already paid, the collector must refund the difference within 60 days without a separate refund request.
Most appraisal districts accept the form online, by mail, or in person. It is available on the Texas Comptroller’s website and on most local district websites.
Keeping the Ceiling If You Move
Moving to a new home in Texas does not cost you the school tax ceiling. Section 11.26(g) lets you transfer a proportional ceiling to your new property, based on a percentage rather than a dollar amount. The appraisal district looks at the ratio between what you actually paid under your ceiling and what you would have paid without it, then applies that same ratio to your new home’s school taxes.3State of Texas. Texas Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled
If your ceiling meant you were paying 60 percent of what you would otherwise owe, that 60 percent carries over, and your first-year school taxes on the new home would be 60 percent of what they would normally be.
To make the transfer, request a Tax Ceiling Certificate (Form 50-311) from the chief appraiser in the county you are leaving. The certificate documents the taxable value, the taxes actually paid, and the taxes that would have been imposed without the ceiling in your last qualifying year.10Texas Comptroller of Public Accounts. Tax Ceiling Certificate for Homeowner Age 65 or Older, Disabled or Surviving Spouse Age 55 or Older Submit it with your new homestead exemption application at the new county’s appraisal district. If your old home also had a county or city ceiling, a separate transfer applies for each taxing unit that adopted one.
If Your Spouse Dies
When a homeowner who had the over-65 exemption dies, a surviving spouse who is at least 55 can keep the exemption on the same property. The surviving spouse must have been living in the home when the qualifying spouse died and must continue to live there as a primary residence.1State of Texas. Texas Tax Code 11.13 – Residence Homestead The school tax ceiling transfers along with the exemption.
The same rule applies to a tax deferral. A surviving spouse 55 or older who was living in the home can continue the deferral rather than face the 180-day repayment deadline that would otherwise be triggered by the senior’s death.5State of Texas. Texas Tax Code 33.06 – Deferred Collection of Taxes on Residence Homestead of Elderly or Disabled Person or Disabled Veteran File an updated homestead exemption application with the county appraisal district and include the deceased spouse’s death certificate to keep the benefits running without interruption.