Over 65 Property Tax Exemptions and Deferrals

You are eligible for the over-65 exemption the year that you turn 65. You can apply at any time during that year, but if you file by April 30, the exemption can be processed in time for your property tax bill that year. Otherwise, the exemption will be applied retroactively. You must apply within one year of your 65th birthday.

Texas Tax Code 11.13(c) and 11.13 (d).

The over-65 exemption is in addition to the standard homestead exemption. You will receive further benefits without losing the standard exemption.

Texas Tax Code 11.13(c).

No, homeowners may only receive either the over-65 or exemption for a person with a disability in addition to the standard homestead exemption. An eligible person with a disability who is also aged 65 or older may receive both exemptions in the same year, but not from the same taxing units. Contact your local appraisal district for more information.

Texas Tax Code 11.13 (h).

How much you save with the over-65 exemption depends on the exemption amounts and tax levels adopted by your city, county, and other local governments. Your savings will be significantly more than the savings received from a general homestead exemption. Additionally, your school taxes are frozen, and you are eligible for tax deferrals.

You must apply with your county appraisal district to apply for an over-65 exemption. Applying is free and only needs to be filed once. The application can be found on your appraisal district website or using Texas Comptroller Form 50-114. You can apply online, by mail, or in-person at the office of your county appraisal district. This is the same form you may have used to apply for the general homestead exemption in the past. Getting the over-65 exemption will not remove the general homestead exemption – you can have both at the same time.

The tax freeze (also known as the tax limitation or tax ceiling) limits the amount of school districts and some other taxing jurisdictions. The amount you pay the first year that you turn 65 remains the highest amount that you will ever pay for those taxes. You may be taxed at an even lower rate some years, but you will never pay more school taxes than the amount that you paid that first year.

Texas Tax Code 33.06

The over-65 exemption will apply to a surviving spouse if they are 55 or older. The surviving spouse must be 55 or older on the date that the over-65 spouse dies.

Texas Tax Code 11.13 (q).

If you qualify for the over-65 exemption, you are also eligible for tax deferrals. With property tax deferrals, you postpone the date that your taxes are due. The deferral ends upon the sale of the property or date ownership changes.

Tax deferrals are one way to protect yourself from foreclosure as you do not have a deadline to pay for taxes. Any deferred property taxes will be charged 5% interest. You can make partial payments at your convenience, and your heirs may also make payments in anticipation of inheritance.

Note that this is only a tax deferral. The tax will come due when you die or the property transfers to someone else.

Yes, you are eligible for quarterly payment plans as well. Along with giving you more time to pay your taxes, you are also able to set up a flexible payment plan to pay each year’s taxes within 12 to 36 months.

No. You cannot use any property tax exemptions on other property such as rental property. You are only eligible for over-65 exemption and deferral on property that also qualifies as a homestead.

Texas Tax Code 11.13 (j) (1).