Over-65 and Disabled Homeowner Exemptions Explained

Most property tax news in Texas is about things going up. Not this. Once you turn 65, or if you have a disability, your homestead picks up a bigger exemption and a limit on your school taxes that can stay with you for as long as you own and live in the home.

It isn't always automatic, though, so plan to apply.

What extra exemptions do Texas homeowners get at 65 or with a disability?

For school taxes, an additional $60,000 exemption. Texas Tax Code §11.13(c) requires school districts to give it to homeowners who are 65 or older or disabled, on top of the $140,000 general homestead exemption. Together that's $200,000 off your home's taxable value for school taxes. The extra amount was $10,000 until 2025, when Texas voters approved the increase.

Cities, counties and other taxing units can also offer their own over-65 or disability exemption. If they do, it has to be at least $3,000.

For this purpose, "disabled" means you meet the Social Security definition of disability used for disability insurance benefits (§11.13(m)). A Social Security disability award is the usual proof. If you're both over 65 and disabled, you can't take both exemptions from the same taxing unit, so you pick one. Disabled veterans have their own, separate exemptions.

What is the over-65 tax ceiling, or "freeze"?

It's a cap on the dollar amount of school taxes on your home. Under Texas Tax Code §11.26, once you qualify, your school taxes can't go above what you paid in the first year you qualified, as long as you own and live in the home. Your appraised value can still rise. Your school tax bill on that home can't, with a couple of exceptions.

The ceiling can go up if you improve the home, such as adding a room. Normal repairs and maintenance don't count. It can also go down. When the state raises the exemption or lowers school tax rates, the law recalculates the ceiling so frozen homeowners get that savings too. That's how people who were already frozen benefited from the 2025 increases.

The school freeze is required. Cities, counties and junior college districts can adopt their own ceiling under §11.261, either by a vote of the governing body or through a voter petition and election. Some have, some haven't.

How do the over-65 exemptions add up?

Picture a home appraised at $400,000. For school taxes, the $140,000 and $60,000 exemptions bring the taxable value down to $200,000. Then the ceiling limits the school tax bill to the frozen amount. The city and county each apply their own exemptions and, if they've adopted one, their own ceiling.

What happens to the freeze if I move or my spouse dies?

If you move to another home in Texas, your school ceiling can come with you as a percentage. Under §11.26(g), the new home's ceiling keeps the same share of its full school tax that your old ceiling represented. The Texas Comptroller's example: if your old ceiling was $100 on a home that would otherwise owe $400, that's 25%, so a new home that would owe $1,000 gets a $250 ceiling. Ask your old appraisal district for a certificate showing the ceiling.

When a homeowner with a ceiling dies, a surviving spouse who was 55 or older at the time keeps the school ceiling, as long as the home stays their homestead (§11.26(i)). Local ceilings also pass to a surviving spouse who is disabled or 55 or older (§11.261(i)), but if you move, they transfer only within the same city, county or junior college district.

How and when do I apply?

Use Form 50-114, the same residence homestead application, filed with your county appraisal district. The over-65 exemption covers the entire tax year in which you turn 65, under §11.42(c), and you should apply within one year after your 65th birthday (§11.43(k)). If you miss that, a late application can still be accepted up to two years after that year's taxes become delinquent (§11.431). If the district already has your birth date on file, from your homestead application or state driver's license records, the law gives you the exemption automatically (§11.43(m)). Still, check your next notice.

Two payment options are worth knowing about. Tax Code §31.031 lets you pay your homestead taxes in four equal installments without penalty or interest, as long as you pay the first one, and tell the tax office you're using the plan, before the delinquency date. And §33.06 lets you defer taxes on your homestead entirely. Penalties don't build up during a deferral, but interest does, at 5% a year, and the deferred taxes must be paid after the home stops being your homestead, for example after a sale, or after a death unless a surviving spouse 55 or older keeps living there.

Now a caveat that works against us. Once your school taxes are frozen, a protest may not lower them at all, because the bill is already capped. A protest can still lower your city and county taxes, if those don't have their own ceiling. Our free tool compares your appraisal to similar nearby homes, so you can see whether that's worth an evening.

Quick answers

How much is the over-65 homestead exemption in Texas? School districts must give an additional $60,000 exemption to homeowners who are 65 or older or disabled, on top of the $140,000 general homestead exemption, for a total of $200,000 off school taxable value.

Do Texas property taxes freeze at 65? School taxes do. Under Texas Tax Code §11.26, school taxes on your homestead can't exceed the amount from the first year you qualified, except for increases tied to new improvements. Cities, counties and junior colleges can choose to adopt their own ceiling.

Can I transfer my over-65 tax ceiling to a new home in Texas? Yes. The school tax ceiling transfers as a percentage to a new homestead anywhere in Texas. You'll need a certificate from your old appraisal district showing the ceiling.

When should I apply for the over-65 exemption? The exemption covers the entire year you turn 65. Apply within one year after your 65th birthday by filing Form 50-114 with your county appraisal district, although late applications can be accepted up to two years after that year's taxes become delinquent.