Did you know that Texas offers significant property tax benefits to senior homeowners aged 65 and older? With property taxes often being one of the largest expenses for homeowners, this exemption can provide substantial financial relief.
For seniors living on fixed incomes, the ability to reduce or even freeze property taxes can make a meaningful difference in their financial well-being.
This blog will guide you through everything you need to know about the over-65 property tax exemption in Texas. From eligibility criteria and potential savings to the step-by-step application process, you’ll have all the information you need to claim this important benefit.
What is the Property Tax Exemption for Over 65 in Texas?
The property tax exemption for individuals aged 65 and older in Texas is a reduction in the amount of property taxes that eligible seniors have to pay on their primary residence. This exemption is designed to reduce the financial burden on seniors, especially those living on retirement income.
Under Texas law, seniors who qualify for this exemption receive a $10,000 exemption from school district property taxes and an additional $3,000 exemption from certain county taxes. Some local taxing units may offer further exemptions or freeze tax amounts once the homeowner reaches age 65.
The goal of the exemption is to support senior citizens by reducing their annual property taxes, making it easier for them to stay in their homes without the fear of rising property taxes.
Key Benefits of the Over 65 Property Tax Exemption
The over-65 property tax exemption in Texas offers several notable benefits:
- Reduction in Property Taxes: Seniors can significantly lower their annual property tax bills due to the exemption.
- Tax Freeze Eligibility: In some cases, the exemption can “freeze” the amount of property taxes due on the home, protecting seniors from future increases in taxes.
- Financial Relief for Seniors: For seniors on a fixed income, these savings can be critical to maintaining financial stability.
- Additional Local Benefits: Certain counties, cities, and school districts may offer their own additional tax exemptions for seniors.
Who is Eligible for the Over 65 Property Tax Exemption in Texas?
To qualify for the over-65 property tax exemption in Texas, homeowners must meet the following eligibility criteria:
- Age Requirement: The homeowner must be 65 years of age or older. Proof of age is required, typically through a driver’s license, birth certificate, or official ID.
- Primary Residence Requirement: The exemption only applies to the homeowner’s primary residence, not to rental or investment properties.
- Ownership Requirement: The applicant must own the home in their name or hold a qualifying interest in the property.
- Special Circumstances: Surviving spouses of homeowners who were 65 or older may also be eligible for continued exemptions if specific conditions are met.
If you meet these conditions, you are entitled to apply for the exemption and enjoy its tax-saving benefits.
How Much Can Seniors Save with the Property Tax Exemption?
The amount seniors can save depends on their local tax rates and additional local exemptions, but here’s a breakdown of the typical savings:
| Taxing Authority | Exemption Amount | Potential Savings |
| School District Taxes | $10,000 | Varies by district tax rate |
| Certain County Taxes | $3,000 | Depends on county rate |
| Local Exemptions (City, etc.) | Varies | Additional savings possible |
Example Calculation
If a senior’s home is appraised at $200,000 and the school district tax rate is 1.2%, the school district exemption would reduce the taxable amount by $10,000. This could result in savings of:
$10,000 x 1.2% = $120 annually
If other local exemptions apply, the total savings can be significantly higher.
How to Apply for the Over 65 Property Tax Exemption in Texas?
Applying for the property tax exemption is a straightforward process. Follow these steps to claim your exemption:
- Download the Form: Visit the website of your local county appraisal district. For example, residents in Travis County can access forms from the Travis County Tax Office.
- Complete the Application: Fill in the required information, including personal details, property address, and proof of age.
- Submit Your Application: Submit the completed form to your local appraisal district’s office. This can usually be done online, by mail, or in person.
- Wait for Approval: The appraisal district will review your application. If additional documentation is required, they will notify you.
- Receive Confirmation: Once approved, your property tax bill will reflect the exemption, and you’ll begin seeing savings on your future bills.
What is the Property Tax Freeze for Seniors Over 65?
The property tax freeze for seniors over 65 is a policy that “freezes” the amount of property taxes due on a home, ensuring that taxes do not increase in the future, even if the home’s value rises. This freeze applies to school district taxes and, in some cases, city and county taxes.
How it Works?
- Tax Amount Lock-In: The amount of property taxes you pay when you turn 65 becomes the maximum amount you will ever pay on that property.
- Future Increases Are Stopped: If the value of your home rises or local tax rates increase, your taxes remain at the “frozen” level.
- Improving the Property: If you make improvements to your property (like adding a room or garage), the increase in value may be subject to new taxes.
Example Scenario:
If your property taxes are $2,500 the year you turn 65, they will remain at that amount for the rest of your life. If property values rise and your neighbors’ taxes increase to $3,000, your tax amount will stay at $2,500. However, if you build a new addition to your home, the added value may be taxed separately.
How Does the Over 65 Exemption Differ from a Homestead Exemption?
Many people confuse the over-65 exemption with the general homestead exemption, but they are distinct benefits:
| Feature | Homestead Exemption | Over 65 Exemption |
| Eligibility | All homeowners | Homeowners aged 65+ |
| Tax Reduction | $25,000 from school taxes | $10,000 from school taxes, $3,000 from county taxes |
| Tax Freeze | No tax freeze | Yes, possible tax freeze |
| Renewal Required? | No, stays active | No, but must reapply if you move |
By combining both exemptions, seniors can enjoy double the tax relief, significantly lowering their annual property taxes.
How Can Surviving Spouses Benefit from the Over 65 Exemption?
If a homeowner aged 65 or older passes away, their surviving spouse may still be eligible for the exemption, but certain conditions apply:
- The surviving spouse must be at least 55 years old at the time of the homeowner’s death.
- The surviving spouse must continue to live in the home as their primary residence.
If these conditions are met, the surviving spouse can continue to receive the property tax exemption and benefit from the existing tax freeze.
Common Mistakes to Avoid When Applying for the Over 65 Property Tax Exemption
- Missing the Deadline: Failing to submit the application in a timely manner can result in delayed benefits.
- Incomplete Documentation: Not providing proof of age or ownership may result in application rejection.
- Applying for the Wrong Property: The exemption only applies to a primary residence. Rental properties do not qualify.
- Forgetting to Reapply After Moving: If you move to a new home, you must reapply for the exemption on the new property.
Conclusion
The over-65 property tax exemption in Texas is a valuable tool that can reduce your tax burden and provide financial stability during retirement.
With reductions on school district taxes, potential savings from county taxes, and the possibility of a property tax freeze, seniors have several ways to reduce their annual bills.
If you’re 65 or older and own your primary residence, make sure to apply for this exemption. It’s a simple process, but the benefits can be life-changing.
Frequently Asked Questions (FAQ)
How do I prove my age to qualify for the over-65 property tax exemption?
You can prove your age by submitting a copy of your driver’s license, birth certificate, or any government-issued ID that displays your birth date.
Can I get an exemption on a property I rent out to tenants?
No, the over-65 property tax exemption only applies to the homeowner’s primary residence.
Can I transfer my exemption if I move to a new home in Texas?
Yes, you can transfer your exemption to a new property. You must reapply with the local appraisal district of your new home.
How long does it take to process the exemption application?
Processing times vary by county, but it typically takes 30 to 60 days.
What happens to my exemption if I pass away? Can my spouse continue to receive it?
Yes, if your spouse is 55 or older and was living in the home at the time of your passing, they may continue to receive the exemption.
Can I have both the homestead exemption and the over-65 exemption?
Yes, you can have both exemptions at the same time, which increases your savings.
Do I need to reapply for the exemption every year?
No, once granted, the exemption typically remains in place unless there is a change in ownership or the property is no longer your primary residence.
