Texas Over-65 Property Tax Exemption

You qualify for the full tax year in which you turn 65. Under Texas Tax Code §11.13, the exemption is prorated to January 1 of the year you turn 65 — so if you turn 65 on August 20, 2026, you qualify for the entire 2026 tax year, not just the months after your birthday. You don't need to wait until the following year — file Form 50-114 as soon as you turn 65 and the CAD applies the exemption retroactively for that current tax year. Only one homeowner needs to be 65+ for the entire household to benefit; your under-65 spouse is covered as long as you jointly own and occupy the home.

The extra $10,000 school exemption saves roughly $100-$130/year on its own (at typical school tax rates of ~1.0%-1.3%). The school tax ceiling is far more valuable over time — it freezes your school tax dollar amount permanently, so if rates or values rise 5% per year over 15 years, your freeze could save $10,000+ cumulatively compared to a non-frozen bill. Some cities and counties (like Houston, Dallas, Austin) add their own over-65 exemptions on top, ranging from $3,000-$85,000. Check your county's specific over-65 benefits.

Texas Tax Code §11.26 freezes the dollar amount of school district taxes for qualifying over-65 homeowners. Once you qualify and apply, your school taxes cannot exceed the dollar amount you paid in the year you first qualified — even if the school district raises its tax rate, even if your property value skyrockets. The ceiling only applies to school taxes; your county, city, and special district taxes are not frozen unless those jurisdictions adopt their own separate ceilings (some do, many don't).

Yes, but not fully. If you sell your home and buy a new one in Texas, you can transfer the percentage of your tax ceiling to the new home. For example, if your old home had a tax bill of $2,000 frozen at $1,200 (a 60% savings), your new home gets a similar 60% cap on its school taxes. Your county appraisal district handles the transfer — file Form 50-114 at your new property and request the transfer certificate from your old appraisal district.

Texas law lets over-65 homeowners defer (postpone) ALL property taxes on their homestead for as long as they own and occupy it. Deferred taxes accrue 5% simple interest annually — far lower than the default delinquency rate of 12%+. When you sell the home or pass away, all deferred taxes + interest come due at once, usually paid from the sale proceeds or estate. Use deferral if you have limited income but significant home equity; avoid if you want to leave a clean estate. File Form 50-126 to initiate. Cannot be used if there's a mortgage that prohibits it — check your loan terms first.

File Form 50-114 (Application for Residence Homestead Exemption) with your county appraisal district and check the "Age 65 or Older" box. Include a copy of your driver's license or state ID showing the homestead address and a birth date proving you're 65+. Most counties offer online filing through their websites (HCAD iFile, DCAD online portal, TCAD, BCAD, CCAD, TAD all accept online over-65 applications). Application is FREE. Late applications are accepted up to 2 years after the delinquency date, so you can retroactively claim the exemption for recent past years.

Yes. Only one spouse needs to be 65 or older for both to benefit. The full over-65 exemption and tax ceiling apply to the entire household — the younger spouse is covered as long as they jointly own and occupy the home. If the over-65 spouse dies first, the survivor keeps all over-65 benefits for life as long as they are 55 or older at the time of death and continue to occupy the home as their principal residence.

Texas Tax Code §11.13(q) preserves the over-65 exemption and tax ceiling for a surviving spouse IF: (1) the surviving spouse was at least 55 years old when the over-65 spouse died, (2) the home was their joint homestead, and (3) the surviving spouse continues to occupy it as their principal residence. The school tax freeze amount carries over exactly, so the widow(er) continues to pay the same frozen school tax dollar amount the couple did. If the surviving spouse remarries, the exemption ends unless the new spouse also qualifies for their own over-65.

Yes — the over-65 exemption freezes SCHOOL taxes but not county, city, MUD, or special district taxes. Your non-school property taxes can still increase if your appraised value goes up. Protesting your value every year keeps ALL your taxes in check, not just school. Also: if you ever lose the freeze (by moving without transferring, remarrying without qualifying, etc.), your school tax bill reverts to current value × current rate — so having a lower appraised value is insurance. Protesting is free and cannot cause your value to increase.

No — you must choose one or the other for the same tax year. The benefits are similar (both include extra $10K exemption + tax freeze + deferral option), so most homeowners just take whichever they qualified for first. If you qualify for the over-65 exemption at 65, any prior disabled person exemption automatically rolls into the over-65 status — the tax freeze amount transfers, preserving your savings. Disabled veterans with a VA rating of 100% are a separate case — they can stack the 100% veteran exemption with over-65, effectively paying zero property tax.