Property Tax Exemptions and Deferrals for People with Disabilities

The Texas Property Tax Code states that homeowners are eligible for the exemption if they meet the Social Security Administration’s test for disability.

• You must have a medically determinable physical or mental impairment;
• The impairment must prevent you from engaging in any substantial gainful activity; and
• The impairment must be expected to last for at least 12 continuous months or result in death.

You will also qualify if you are 55 or older and blind, and you cannot engage in your previous work due to your blindness.

Tex. Tax Code Ann §11.13(c) and §11.13 (d)

This exemption is in addition to the standard homestead exemption. You will receive further benefits without losing the standard exemption.

Tex. Tax Code Ann §11.13(c)

No, homeowners may only receive either the over-65 or disabled exemption in addition to the standard homestead exemption. An eligible person with a disability who is 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.

Tex. Tax Code Ann §11.13 (h)

How much you save with this 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 the 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 exemption for people with disabilities will not remove the general homestead exemption – you can have both exemptions 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 are eligible 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 that you were eligible for this exemption.

Tex. Tax Code Ann §33.06

If you qualify for the exemption for people with disabilities, 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 this exemption and deferral on property that also qualifies as a homestead.

Tex. Tax Code Ann §11.13 (j) (1)