Texas Property Tax Exemptions for Seniors – Your 2025 Guide to Lower Bills
Turning 65 in Texas brings more than birthday cards—it unlocks a set of powerful property-tax breaks. Understanding them can save you thousands each year and help you decide whether you’ll age in place, downsize, or sell. Below is a plain-English road map to every major Texas property-tax exemption for seniors, plus the new rules that kicked in on January 1, 2025 and what might change later this year.
1. The Basics: How Texas Property Tax Works for Seniors
Texas funds public schools largely through local property taxes, so the bill you receive is really several bills—school district, county, city, hospital, college, and special districts. Your senior exemptions apply first to the school-district portion (the largest slice) and sometimes to the others if they choose to adopt them.
2. Current Senior Exemptions (Effective 2025)
| Exemption | Applies To | Amount in 2025 | How It Helps |
|---|---|---|---|
| General Homestead | All owner-occupiers | $100,000 off appraised value | Cuts the base bill for everyone. |
| Age-65+ Additional Exemption | Homeowners 65+ (or surviving spouse 55+) | +$10,000 off school value | Stacks on top of the general homestead. |
| “Tax Ceiling” (Freeze) | Homeowners 65+ | Freezes school taxes at the dollar amount you paid the year you turned 65 (unless you add new improvements) | Protects you from rising school-tax bills. |
| Installment-Payment Option | 65+ or disabled | Split taxes into four payments without penalty | Improves cash-flow management. |
| Deferral (5 % Interest) | 65+ or disabled | Postpone tax collection as long as you live in the home; interest accrues at 5 % | A safety valve if cash is tight. |
Keyword spotlight: These combined Texas property tax exemptions for seniors can wipe out a six-figure chunk of your home’s taxable value and keep your Texas property tax for seniors predictable for life.
3. What Changed on January 1, 2025?
The Property Tax Relief Act (Senate Bill 2) boosted the general homestead exemption from $40,000 to $100,000 for every homeowner and preserved all senior protections. Most seniors now see an average annual savings of about $938 once the boost and freeze adjustments are factored in.
4. Coming Soon? A $200,000 Senior Homestead Exemption
In April 2025 the Texas Senate passed SB 23 / SJR 85, proposing to lift the senior add-on from $10,000 to $60,000. When combined with the $140,000 “across-the-board” exemption the Senate also advanced, seniors could shelter $200,000 of value—enough to erase the school-district tax bill for many homeowners. The measure still needs voter approval in November 2025 before it becomes law, so keep an eye on the ballot.
5. How to Claim Your Senior Exemptions
- Gather proof of age (driver’s license, state ID, or birth certificate).
- File Form 50-114 (Residence Homestead Exemption) and check the Age-65 box.
- Submit once—the exemption and the tax ceiling renew automatically.
- Deadline: Up to 2 years after you qualify, but filing early maximizes savings.
If you’re turning 65 this calendar year, you can file as soon as your birthday passes and receive the benefit retroactive to January 1.
6. Deferring Taxes: A Lifeline, Not a Giveaway
Texas Tax Code § 33.06 lets seniors pause property-tax collection while they live in the home. Interest accrues at 5 % simple interest (far lower than regular penalty/interest rates). Your heirs have 180 days after you sell or pass away to pay the deferred balance. Use it only when necessary, and remember the lien reduces the equity your heirs inherit.
7. Frequently Asked Questions
Does the tax ceiling apply to city or county taxes?
Only the school-district portion is frozen statewide. Some cities, counties, or special districts opt-in to their own senior freeze—check with your local tax office.
Can I get both the disability and age-65 exemption?
No. You may claim either the age-65 exemption or the disability exemption, whichever is larger, but not both.
What if I move to a new homestead?
Your percentage savings transfer. For example, if your old school tax was frozen at 60 % of the original amount, your new home’s school tax will also be capped at 60 %.
8. Planning Ahead: Sell, Downsize, or Age in Place?
Lower property taxes can tip the scales toward staying put, but sometimes the maintenance of a large home still outweighs the savings. If you’re considering a quick sale before relocating closer to family, our guide on selling a house as-is in any market breaks down the pros and cons. You can also compare cash sales vs. traditional listings to see which nets you more after taxes and fees.
9. Key Takeaways
- $110,000 is the minimum senior homestead shelter today ($100k general + $10k senior).
- A tax ceiling freezes school taxes at age 65, protecting you from rising appraisals.
- Deferral and installment options offer additional flexibility when cash is tight.
- Watch the November 2025 ballot—approval could jump the senior exemption to $200,000.
Understanding these breaks ensures you never pay more Texas property tax than necessary as a senior. Bookmark this guide and revisit it after the November vote to see if the landscape has changed again.