Texas Homestead Exemption for Seniors, Disabled Residents & Veterans | Novus Texas

Texas Homestead Exemption for Seniors Veterans and Disabled Homeowners

Texas Homestead Exemption for seniors, veterans, and disabled homeowners can create major property tax savings beyond the standard exemption. Many qualifying Texans reduce their tax bill by thousands each year, and some pay nothing at all.

Most Texas homeowners know about the general Homestead Exemption — the $140,000 school tax reduction available to anyone whose primary residence is in Texas. What fewer people realize is that seniors, disabled individuals, and veterans qualify for substantially larger exemptions on top of that. In some cases, the savings run into thousands of dollars per year. In others, they eliminate the property tax bill entirely.

If you fall into one of these groups, or if you’re buying a home and want to understand the full picture of what you’ll actually owe in taxes, here’s what you need to know.

The General Homestead Exemption: The Baseline

Before getting into the enhanced exemptions, it’s worth understanding the foundation. The standard Texas Homestead Exemption removes $140,000 from your home’s taxable value for school district taxes. This applies to any Texas homeowner whose primary residence qualifies. On a $350,000 home at a 1.4% school tax rate, that’s roughly $1,960 in annual savings.

The exemption also caps annual appraisal increases at 10%, which is a significant protection in markets where values have climbed quickly.

Over-65 Exemption: What Senior Homeowners Qualify For

Texas homeowners who turn 65 during the tax year qualify for an additional $60,000 reduction in their school district taxable value — on top of the general $140,000 exemption. That’s a combined $200,000 removed from your taxable value for school taxes alone.

There’s an additional benefit that’s less well-known: a school tax freeze. Once you qualify for the over-65 exemption, your school district taxes are capped at the amount you paid in the year you first qualified. Even if your home’s value increases — and even if tax rates change — your school tax bill cannot go above that frozen amount as long as you remain in the home.

This is one of the most valuable protections in Texas property tax law, and it can make a substantial difference in retirement planning for homeowners on fixed incomes.

*School tax savings estimated at 1.4% rate. Many counties also offer additional over-65 exemptions from city and county taxes — check with your local appraisal district.

Disability Exemption: Equal to the Over-65 Benefit

Texas residents who qualify as disabled under Social Security Administration standards receive the same $60,000 school tax exemption as seniors, plus the same tax freeze protection. If you qualify for both the over-65 exemption and the disability exemption, you can apply for both — but the tax freeze applies only once.

County and city appraisal districts may offer additional local exemptions on top of these state standards. It’s worth contacting your county appraisal district directly to ask what local exemptions exist for disabled residents, as these vary.

Veterans: A Range of Exemptions Based on Disability Rating

Texas offers a tiered property tax exemption for veterans based on their VA disability rating. The exemptions apply to the property’s total taxable value — not just the school district portion — making them broader in scope than the general homestead exemption.

*Savings estimates based on a combined effective rate of approximately 2.0%. Actual savings depend on your county’s tax rates.

The 100% disability exemption is among the most significant financial benefits available to Texas homeowners. A veteran with a 100% disability rating pays zero property taxes on their primary residence — for as long as they own the home. On a $400,000 home in a high-tax county, that can represent $8,000 or more in annual savings.

Surviving spouses of veterans who qualified for the 100% exemption can also maintain this benefit in many cases, provided they remain in the home and haven’t remarried.

How to Apply

All homestead exemption applications are filed through your county appraisal district — free of charge. The deadline is April 30 of the tax year you want the exemption to apply, though some circumstances allow late filings.

For the over-65 and disability exemptions, you’ll need to provide documentation: a birth certificate or driver’s license for age, and an SSA disability determination letter for the disability exemption. Veterans will need their VA award letter confirming their disability rating. Review eligibility on VA.gov

Once approved, most exemptions remain in place automatically each year as long as your eligibility status doesn’t change and the property remains your primary residence.

How Exemptions Affect Your Mortgage

If you’re financing a home or refinancing an existing mortgage, these exemptions have a direct impact on your monthly payment. Property taxes are collected through escrow, so a lower tax bill translates to a lower monthly payment. For qualifying veterans or seniors, the savings can meaningfully improve your debt-to-income ratio — which in turn can affect how much home you qualify for.

When our team runs the numbers on a loan for a qualifying veteran or senior, we always account for the exemption they’ll receive. It changes the math in their favor.

Talk with a Novus loan expert at NovusTexas.com. We’ll help you understand exactly how your exemption status affects your financing options.

Novus Home Mortgage is an Equal Housing Lender. Exemption amounts and eligibility requirements are established by Texas law and administered by county appraisal districts. Rules and amounts are subject to legislative change. Contact your county appraisal district or a tax professional for guidance specific to your situation.