Texas Property Tax Exemptions for Seniors: Ceiling, Deferrals, Deadlines

Texas property tax exemptions for seniors stack on top of the regular homestead break: at age 65, you get an additional $60,000 off your home’s taxable value for school district taxes, added to the $100,000 every homesteader already receives, and your school district taxes are frozen at that year’s amount for as long as you live in the home. Counties, cities, and junior college districts can layer on their own exemptions and their own tax ceilings. Together these can cut a senior’s annual tax bill by thousands and keep it predictable for life.

Who Qualifies

Three things have to be true. You are at least 65, you have an ownership interest in the property (partial ownership counts), and you live there as your principal residence, which Texas law calls a “residence homestead.”¹ A rental or vacation home does not qualify.

You can apply in the same year you turn 65, even if your birthday falls late in the year. The exemption takes effect for the full tax year in which you reach 65.²

Surviving Spouses

If a homeowner with the over-65 exemption dies, the surviving spouse keeps it, as long as that spouse was 55 or older at the time of death and continues living in the home as a homestead.² The school district tax ceiling transfers to that spouse too, so the frozen bill stays frozen.³

The School District Exemption and Tax Ceiling

School taxes are usually the largest line on a Texas property tax bill, and this is where the biggest savings sit. Every homesteader gets $100,000 off the school taxable value of the home. Turning 65 adds another $60,000, for a combined $160,000 reduction.¹ On a home appraised at $350,000, the school district taxes only $190,000 of value.

Then comes the ceiling. Once you qualify for the over-65 exemption, the school district cannot charge you more school tax than you owed in that first qualifying year. Ever. If appraisals climb or rates rise, your school tax stays put. In some years it can dip below the ceiling, but it can never rise above it.³

One thing does reset the ceiling: substantial improvements to the property, such as adding a room, a garage, or a second story. Routine maintenance like a new roof or paint does not.³

County, City, and Other Local Add-Ons

The school district benefits above are statewide. Beyond them, local taxing units decide for themselves. Any county, city, or special district can adopt a local option homestead exemption of up to 20 percent of the home’s appraised value, with a minimum of $5,000, and many offer an additional flat-dollar exemption specifically for residents 65 and older.¹ Amounts vary widely by jurisdiction.

Counties, cities, and junior college districts may also adopt their own tax ceiling for seniors, working the same way as the school ceiling. This one is optional, not automatic.⁴ Many larger counties and cities have adopted it; some have not. Call your county’s central appraisal district to find out exactly what your area offers.

How to Apply

Use Form 50-114, the Residence Homestead Exemption Application, available from the Texas Comptroller or your central appraisal district.⁵ The form covers every homestead exemption, so complete the section for age 65 or older.

You will provide:

Your date of birth, to verify age.
Property information, meaning the account number and legal description from your deed or a prior tax statement.
A copy of your Texas driver’s license or state ID, with an address that matches the property.

File with the central appraisal district in the county where the home sits. Many districts accept online submissions; if you mail the application, use certified mail. The standard deadline is before May 1 of the tax year.¹ Once approved, you do not reapply each year. The exemption stays with the property as long as you own and live in it.

Missed the Deadline

Texas accepts late homestead applications for up to two years after the tax delinquency date, which is typically February 1.⁶ If approved, the exemption applies retroactively and you can recover taxes overpaid during the eligible period. This matters most for people who turned 65 and didn’t realize the standard homestead exemption doesn’t automatically convert to the over-65 version. File as soon as you can and the tax collector will process a refund.

Moving to a New Home

You do not lose the school tax ceiling when you sell and buy another Texas home. It transfers as a percentage rather than a flat dollar amount. The appraisal district compares your capped taxes on the old home to what you would have owed without the ceiling, then applies that same ratio to the new home.³

Request a tax ceiling certificate from the appraisal district where the old home was located. That certificate carries the numbers your new district needs. If you are downsizing, the transferred percentage discount applies to a smaller tax base and works strongly in your favor.

Paying in Installments

Even after every exemption, the remaining bill can still bite. Homeowners 65 and older can split homestead taxes into four equal installments with no penalty or interest.⁷ You must make the first payment and notify the tax office of your intent before the delinquency date, usually February 1.

When the delinquency date is February 1, payments are due before February 1, April 1, June 1, and August 1. Miss any installment and the unpaid balance becomes delinquent immediately, triggering a six percent penalty plus one percent interest per month.⁷

Deferring Taxes Entirely

If exemptions and installments still aren’t enough, a tax deferral lets you postpone paying property taxes on your homestead. You qualify at 65 or older if you own and occupy the home as your residence. Once the deferral is in place, no taxing unit can sue for delinquent taxes or foreclose the tax lien.⁸

A deferral is not forgiveness. The tax lien remains on the property, and interest accrues at five percent per year, considerably lower than the standard delinquent rate. The deferred balance, along with any pre-deferral penalties and accumulated interest, comes due 181 days after you stop owning or living in the home, so in practice it is usually paid out of sale or estate proceeds.⁸

To apply, file a notarized affidavit on Form 50-126 with the chief appraiser in your county.⁹ If you have a mortgage with an escrow account, talk to your lender first. The lender may still require taxes to be paid through escrow regardless of the deferral.

If Your Application Is Denied

A denial arrives in writing with a reason. Common causes are a mismatch between the address on your ID and the property, or missing documentation, both of which can often be fixed and resubmitted without a formal fight.

If you believe the denial is wrong, file a protest with the appraisal review board. The deadline is generally May 15 or 30 days from the mailing date of the notice, whichever is later.¹⁰ Bring proof of age, residency, and ownership to the hearing. If the board rules against you, you have 60 days to appeal to district court.

1
Texas Comptroller of Public Accounts. Property Tax Exemptions
2
State of Texas. Texas Code Tax Code 11.13 – Residence Homestead
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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 Tax Code TAX 11.261
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Texas Comptroller of Public Accounts. Residence Homestead Exemption Application
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Texas Comptroller of Public Accounts. Residence Homestead Exemptions
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Texas Comptroller of Public Accounts. Payment Options
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State of Texas. Texas Code Tax Code 33.06 – Deferred Collection of Taxes on Residence Homestead of Elderly or Disabled Person or Disabled Veteran
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Texas Comptroller of Public Accounts. Tax Deferral Affidavit
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Texas Comptroller of Public Accounts. Appraisal Protests and Appeals