Texas has no state income tax, but it makes up for it with some of the highest property taxes in the country. For older homeowners, that bill can be the biggest cost of staying in their home.
The good news is that Texas also has some of the strongest property tax protections for people 65 and older. Since voters approved constitutional amendments in November 2025, those protections are larger than ever. Here is what they are, how much they save and how to claim them.
The short version
If you are 65 or older and own and live in your Texas home:
- Your school district must exempt $200,000 of your home’s value: the $140,000 general homestead exemption plus an extra $60,000 for age 65 or older.
- Your school taxes are frozen at the amount you paid in the year you qualified. This is called the tax ceiling.
- Cities, counties and special districts may give you more, through their own senior exemptions or tax ceilings.
- You can defer paying property taxes on your home while you live there, if you need to.
The exemptions in detail
| Exemption | Amount | Who must or may offer it |
| General residence homestead exemption | $140,000 off school district value | All school districts (required) |
| Age 65 or older, or disabled | Additional $60,000 off school district value | All school districts (required) |
| Local option percentage exemption | Up to 20% of appraised value (at least $5,000) | Cities, counties, school districts and special districts (optional) |
| Local option age 65 or older exemption | At least $3,000, often much more | Cities, counties, school districts and special districts (optional) |
| Farm-to-market and flood control | $3,000 | Counties that levy these taxes |
Source: Texas Comptroller of Public Accounts, Tax Code section 11.13.
A homeowner who is both 65 or older and disabled can claim one of the two additional exemptions, not both.
The school tax ceiling: the real long-term saver
Once you qualify for the over-65 exemption, your school district taxes on that home cannot go above the amount you paid in the first year you qualified, even if your home’s value or the tax rate rises. If the school district lowers taxes, your bill can go down, and the lower amount becomes your new ceiling.
The ceiling can rise only if you make significant improvements to the home, such as adding a room. Ordinary repairs and maintenance do not count.
Many cities, counties and junior college districts have also adopted their own tax ceilings for seniors. Ask your appraisal district which of your taxing units offer one.
If you move within Texas, you can generally take part of the ceiling benefit with you. The new home’s school tax is limited to the same percentage of what it would otherwise be. Ask your new appraisal district for the ceiling transfer certificate process.
For surviving spouses: if the homeowner who qualified dies, a surviving spouse who is 55 or older and lives in the home can generally keep the exemption and the tax ceiling.
How much does it save?
Here is an illustration for a home appraised at $350,000, assuming a combined school tax rate of 1.0%. School district rates vary by district.
| Under 65 | Age 65 or older | |
| Appraised value | $350,000 | $350,000 |
| School exemptions | $140,000 | $200,000 |
| Taxable value for school taxes | $210,000 | $150,000 |
| Yearly school tax at 1.0% | $2,100 | $1,500 |
The extra $60,000 saves about $600 a year in this example. The tax ceiling then locks that $1,500 in place. If the home’s value rises 5% a year for 10 years and the tax rate stays the same, school taxes without a ceiling would climb to about $3,700 a year by year ten, while the ceiling keeps them at $1,500 or less. Over the decade, the ceiling would save roughly $11,000 in this example.
City, county and special district taxes are separate and are not frozen unless those units have adopted a ceiling.
How to apply
- Get Form 50-114, the Residence Homestead Exemption Application, from your county appraisal district’s website.
- Check the box for the age 65 or older exemption and include a copy of your Texas driver’s license or ID showing the property address.
- Submit it to your county appraisal district, not the Comptroller. Many districts accept applications online.
- Timing: the general deadline for homestead exemptions is before May 1. For the over-65 exemption, you qualify for the entire year in which you turn 65, and appraisal districts accept late applications for a period after the tax year. If you missed it, ask your district about applying for past years.
- Check your next tax bill to confirm the exemption and ceiling appear.
You generally do not need to reapply each year unless the appraisal district asks, but you must tell the district if you move or stop using the home as your main residence.
Deferral: when you can’t pay
Homeowners 65 or older, or disabled, can defer paying property taxes on their homestead for as long as they own and live in it. The taxes are not forgiven. They build up with interest, currently at a much lower rate than the normal penalty rate, and become due when the home is sold or after the owner’s death. Deferral can prevent foreclosure for tax debt, but it reduces the equity left for heirs. File a tax deferral affidavit with the appraisal district to start.
Common mistakes to avoid
- Assuming it happens automatically. Turning 65 does not trigger the exemption. You must apply.
- Owning the home through the wrong kind of trust or entity without checking eligibility. Most revocable living trusts qualify if you live in the home, but ask first.
- Forgetting local exemptions. Some cities and counties offer large senior exemptions that are separate from the school exemption.
- Not updating after a move. The ceiling transfer must be requested.
Other Texas exemptions worth knowing
- Disabled homeowners of any age can claim the same $60,000 additional school exemption and school tax ceiling as those 65 and older.
- Disabled veterans receive exemptions based on their disability rating. Veterans with a 100% service-connected disability rating, or who are rated unemployable, can receive a full exemption on their homestead.
- Surviving spouses of certain veterans and first responders may qualify for full or partial exemptions.
If you are helping a parent in Texas
Pull up your parent’s property on the county appraisal district’s website. The record shows which exemptions are in place. If the over-65 exemption or ceiling is missing, you can help them file Form 50-114, and ask whether a late application can recover past years. It is one of the quickest ways to make a real difference to a parent’s budget.
Texas as a retirement state
On our cost of retirement estimates, Texas comes in below the national average, at about $4,680 a month for a typical 65+ household. No state income tax means Social Security, pensions and IRA withdrawals are untaxed. The trade-offs are high property tax rates and rising home insurance, which averaged about $4,085 a year for $300,000 of coverage in 2026 data from Insurance.com and Quadrant. The over-65 exemptions and tax ceiling help close that gap for homeowners.
Frequently asked questions
At what age do you stop paying school taxes in Texas? You do not stop, but at 65 your school taxes are frozen at the level of the year you qualify, and you get an extra $60,000 exemption.
How much is the Texas over-65 exemption in 2026? $60,000 off school district taxable value, on top of the $140,000 general homestead exemption, for a total of $200,000. Local taxing units may add more.
Do I have to reapply for the over-65 exemption every year? Usually not, unless your appraisal district requests it. Notify them if you move.
Can I get a refund if I didn’t apply the year I turned 65? Often yes. Texas allows late applications for the over-65 exemption for a period after the tax year. Contact your appraisal district.
Sources
- Texas Comptroller of Public Accounts, “Property Tax Exemptions” and Tax Code section 11.13
- Texas Comptroller, Form 50-114, Residence Homestead Exemption Application
- Texas Tax Code, sections 11.26 (school tax limitation) and 33.06 (tax deferral)
- November 2025 Texas constitutional amendments on homestead exemptions
- Insurance.com and Quadrant Information Services, 2026 homeowners insurance by state
Rules can change with new legislation. Confirm with your county appraisal district. This article is general information, not tax or legal advice.
