How Much Do Property Taxes Go Down When You Turn 65 in Texas?
Turning 65 as a homeowner in Texas presents more than just birthday cards. It should be recognized that it generally comes with one of the most meaningful property tax breaks available in the state. It is true that the exact savings vary in accordance with where the home is located. Yet, there are specific facts worth knowing upfront.
Texas residents over 65 might claim a $10,000 school tax exemption in addition to the standard homestead deduction. That alone lowers the taxable value of the property for school taxes. Moreover, local governments might layer more exemptions on top in parallel to the taxing area—some present flat reductions, others leverage a percentage method. And for school taxes? A freeze can keep that part of the bill from going up again, ever. We break down what that could look like for fresh seniors as presented below:
Sample Savings Breakdown
Base value of home: $300,000
Homestead exemption: $40,000
65+ school tax exemption: $10,000
Taxable value after exemptions: $250,000
If the local tax rate is $1.30 per $100 of assessed value, this signifies the elements below:
A reduction of $50,000 in assessed value
Savings of approximately $650 just on school taxes
Additional local senior exemptions could raise the savings even higher
Don’t Forget the Freeze
The school tax freeze is another benefit that should be taken into consideration. Once qualified, school property taxes will not increase as long as the homeowner remains in the property and no major structural changes are made. Such an approach can protect long-term residents from climbing tax rates in fast-growing areas.
Local Perks Could Be Even Bigger
In some parts of Texas, it is true that counties or special districts throw in extra exemptions for seniors, as exemplified below:
Flat exemptions, like $12,000 off the assessed value
Percentage-based exemptions applied to the remaining taxable value
Reduced tax rates designed for homeowners 65 and over
Contacting the county appraisal district can uncover what is available locally. Such optional exemptions are not automatic. So, homeowners should apply to lock in their benefits.
A One-Time Filing, Ongoing Relief
Texas homeowners should file Form 50-114 with the appraisal district in order to access these savings. Proof of age and matching ID is usually required. Once approved, there is no need to reapply unless the primary residence changes.
Why It Matters
It should be acknowledged that seniors in Texas do not just see minor adjustments—they generally experience real changes in what they owe. With school tax exemptions and homestead deductions as well as local freeze options, turning 65 can shift the yearly property tax bill in a major way. If you are unsure about these advantages, contact Dimov Partners today.