At What Age Do You Stop Paying Property Taxes in Texas?

Oftentimes, Texans wonder at what age they will no longer have to pay property taxes. Unfortunately, there is no way to avoid paying property taxes entirely–no matter your age. However, once you reach the age of 65 or older, you are eligible for some relief. This might entail property tax deferrals, senior homestead exemptions, or the school tax ceiling.

Property Tax Deferral for Seniors

In Texas, homeowners 65 or older can defer payment, which means they stop paying taxes even though they continue to accrue on outstanding property taxes for their primary residence while they continue living there. The individual must own the property and occupy the property as a residence homestead to qualify.

To seek a deferral, you must file a Tax Deferral Affidavit with your appraisal district. The deferral applies to delinquent property taxes for all the taxing units that tax your home. By filing an affidavit, you are requesting that the local tax authority stop collecting your taxes on your homestead. However, it is important to note that deferred taxes only postpone your payments and do not cancel your taxes completely. All unpaid taxes become due when the owner ceases to occupy the home. In addition, you will owe interest on your taxes at a rate of at least 5% annually.

Senior Homestead Exemption

All Texas property owners can apply for a homestead exemption. If approved, the exemption reduces the taxable property value. Therefore, it reduces the amount owed on your property tax bill at the end of the year. Seniors 65 or older who occupy their home as a primary residency can qualify for an additional $10,000 exemption in addition to the homestead exemption that all homeowners receive.

To apply, you may file for the “Over 65 Homestead Exemption” up to one year before the date you turn 65. You will want to submit an Application for Residential Homestead Exemption (PDF) and supporting documentation to your appraisal district.

School Tax Ceiling

In Texas, the school tax ceiling, sometimes known as a “tax freeze,” is a limit on the amount of school taxes you must pay once you reach the age of 65. Once you reach this age, your school tax bill can no longer increase above the school district amount you paid the year you reached the homestead tax ceiling. However, this only applies if the school district’s tax increases. Meaning that if the school district property taxes decrease, your bill will also decrease.

Property Tax Loan Assistance

While the law does not allow us to provide tax loans on homesteads to those 65 and older, we can help pay property taxes for non-homestead properties. So, if you are currently behind on your property taxes, do not hesitate to find help. Contact Johnson & Starr today, and we will immediately pay the entire tax bill on your home and set up a repayment plan that works for you. Call us today at 888-508-3894 for more information on our property tax loans and to find out how we can help.