For homeowners in Texas who are aged 65 or older (or whose spouse qualifies), there are powerful property-tax savings tools available: an additional exemption plus a deferral option. Here’s what you—and your friends—need to know.

What is the Over-65 Exemption?

The exemption allows a homeowner aged 65+ (or their surviving spouse under certain conditions) to receive both the standard homestead exemption and this additional “over-65” exemption. It significantly lowers the taxable value of the home and can lead to substantial savings.

When & How to Apply

• You become eligible the year you turn 65.
• It’s best to file by April 30 of that year so it will apply to your current year tax bill.
• The application is free; you apply via your county appraisal district using the standard form (Texas Comptroller Form 50-114) online, by mail, or in person.
• Importantly: electing the over-65 exemption does not make you lose the standard homestead exemption. They stack.

How Much Can You Save?

The precise savings depend on how your local taxing units (city, county, school, etc.) set their rates and exemption amounts. One of the biggest advantages: for your school district taxes, a tax freeze applies. That means the amount you pay in the year you turn 65 becomes the maximum you’ll ever pay for school taxes—no matter how the rates increase later.

Example: How Much a 65-Year-Old Homeowner in Plano Could Save

If you own a $600,000 home in Plano and turn 65 this year, the Over-65 exemption can give you meaningful annual tax savings.

Using common exemption amounts for Collin County:

• Standard Homestead Exemption reduces taxable value to about $500,000
• The Over-65 exemption lowers it further to roughly $440,000
• Plano ISD’s school tax rate is about 1.03955%

Estimated annual savings on school taxes:
≈ $625 per year

Plus, once you receive the Over-65 exemption, your school taxes are frozen, so they cannot increase in future years even if rates or home values rise.

(Actual savings vary by taxing unit, but this gives a clear real-world example.)

What Happens After My Spouse Passes (If Over 65 Exemption Was in Place)?

If the homeowner passes away, the surviving spouse may keep the benefit of the over-65 exemption if they are at least 55 years old on the date of the older spouse’s death.

Deferral Option — What It Means & How It Works

Once eligible for the over-65 exemption, you also become eligible for a tax deferral. This means you can postpone paying your property taxes (on your homestead) until you sell the home, change ownership, or otherwise transfer it.

• During the deferral period, interest accrues at 5%.
• You may also make partial payments when convenient.
• This is not forgiveness—it’s postponement. The tax still comes due when ownership changes.

Pro-Tip- If you plan on or have a reverse mortgage or any mortgage for that matter, you may not defer your property taxes.

Important Limitations / What to Watch For

• The property must be a qualified homestead—you cannot apply the over-65 exemption or deferral to rental properties or non-homestead property.
• If you’re also eligible for other exemptions (for example a disability exemption), you cannot receive the over-65 and the disability exemption from the same taxing unit in the same year, though different taxing units may allow both.

Why This Matters for Real Estate Professionals

As a real-estate professional, being aware of these exemptions and deferrals gives you powerful value to share with your clients—especially older homeowners or those planning for retirement in Texas.

• It strengthens your role as a trusted advisor: “Here’s how you maximize not only your mortgage but your taxes.”
• It helps you understand clients’ cash-flow, tax liabilities, and equity planning.
• It can influence decisions around refinancing, term planning, property holding strategy as clients age.

Action Steps & Tips for Homeowners

• I encourage clients turning 65 (or whose spouse is 65) to apply as early as possible in the year they turn 65—file by April 30 during the year they turn 65.
• I remind clients that this is in addition to the standard homestead exemption.
• For those concerned about future tax increases, I highlight the tax freeze protection for school taxes—a major long-term benefit.
• If cash‐flow is tight, I explain how the tax deferral option might help—but also make clear it’s not free: taxes + interest will eventually be owed.
• I always verify eligibility and current rules with the county appraisal district—tax rules evolve, and local practices can vary.

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Bottom Line:
For Texans age 65+ (and their surviving spouses who meet criteria), the over-65 property tax exemption plus the deferral option offer a meaningful path to reducing tax burdens, protecting home equity, and gaining greater financial flexibility. As a mortgage professional, educating your clients about this can deepen trust, improve outcomes, and differentiate your service.