Over 65 property tax exemption in Texas

Did you know that Texas property tax code makes special provisions for adults aged 65 or older? According to Tax Code Section 11.13(c), to qualify for the over-65 property tax exemption, a property owner must be 65 or older, and reside in the home as their principal residence.

The primary benefit of the Texas over-65 property tax exemption is that it freezes school taxes on the property, meaning they will NOT go up, even when the property value or tax rate increases. The only reason school property taxes are permitted to increase is when a home is remodeled to include an enlargement or improvement, however repair and replacement of a roof, heating, ventilation, and air conditioning (HVAC) is considered maintenance, not improvement to a property.

The tax code also qualifies individuals who are disabled. A disabled person must meet the definition and qualifications under the Federal Old-Age, Survivors and Disability Insurance Act. A homeowner can obtain either the over-65 or the disability exemption but not both. The disability exemption is available to those legally disabled and has the same outcome as the over-65 exemption. A married couple can obtain one homestead exemption.

WHAT IS THE PROPERTY TAX EXEMPTION FOR OVER 65?

WHAT IS THE PROPERTY TAX EXEMPTION FOR OVER 65?

With the November 2023 adoption of Senate Bill 2, the Texas homestead exemption for school taxes has increased to $100,000 and those 65 and older will continue to qualify for an additional $10,000, bringing their total exemption to $110,000.

Not only do Texas homeowners over 65 receive the benefit on the school tax portion of their bill, but Texas tax code also requires that local tax entities, such as the city, county, and other special districts provide homeowners over the age of 65 with an exemption of at least $3,000 for taxing units other than school.

WHEN DO I QUALIFY?

WHEN DO I QUALIFY?

To qualify for this exemption the individual must be of age 65 or older. If the individual is interested in this exemption, you must submit proof of your age. This can be done with a copy of your driver’s license or your birth certificate. In cases where the 65 or older homeowner dies, the surviving spouse continues to receive the exemption. However, to qualify, the spouse must be 55 years or older, must live in the house, own it, and apply for the exemption. For a disabled person who is 65 or older, he/she can receive both exemptions during the same year, but the taxing units must differ.

APPLYING FOR THE ADDITIONAL $10,000 EXEMPTION

APPLYING FOR THE ADDITIONAL $10,000 EXEMPTION

After you turn 65, you have up to one year to apply to your appraisal district.
Once your application is approved by the appraisal district, you will receive the exemption for the entire year you turned 65. Since 2005, you will automatically receive the exemption without applying if your DOB is mentioned on the original homestead application form or any other written document submitted to the appraisal district about your homestead. However, you must be entitled to a general homestead exemption.

TYPES OF EXEMPTIONS

  • AGE 65 & DISABLED EXEMPTION

Along with the $100,000 for school districts, homeowners over 65 qualify for a $10,000 homestead exemption. If the homeowner qualifies for both age 65 and the disabled exemption, the owner can choose only one among the two for the school district taxes. Both exemptions cannot be received.

  • County tax

In situations where the county appraisal districts collect tax for flood control and other taxing entities, homeowners are allowed at least $3,000 as an exemption on their county taxes, in some counties the amount may be more.

  • OPTIONAL PERCENTAGE EXEMPTION

At the discretion of the taxing unit, an optional exemption can be offered at up to 20% of the value of a homeowner’s residence. This must be decided prior to July 1st of the tax year and the exemption cannot be less than $5,000.

Furthermore, should property owners who qualify for the over 65 exemption purchase or move to a different residence in Texas, they can transfer the percentage of the school taxes paid. This will be based on the previous home’s school tax ceiling and is termed Ceiling Transfer. For this, homeowners will have to relocate within the same taxing unit. If the new house is in a different district, a certificate from the appraisal district for the previous home is required and it must be taken to the appraisal district where the new house is located.

ENROLL NOW

Share Now