Retiring to Texas: How the Senior Property Tax Exemptions Work

If you're retiring to Texas, 2026 brought changes worth knowing about. The state substantially increased the property tax exemptions available to homeowners 65 and older, and combined with the absence of a state income tax, it changes the math for a lot of retirees. Here's how it works — and the parts people commonly misunderstand.

The short answer

For the 2026 tax year, homeowners 65 or older can claim the general $140,000 school district homestead exemption plus an additional $60,000 — a combined $200,000 of value exempt from school district taxes on their primary residence. There's also a school tax ceiling that limits future school tax increases. None of it is automatic; you have to file.

What changed

Texas voters approved constitutional amendments in November 2025 that took effect for the 2026 tax year:

The general homestead exemption for school district taxes rose from $100,000 to $140,000.

The additional exemption for homeowners 65 or older (or who qualify as disabled) rose from $10,000 to $60,000.

Together, that's $200,000 of your home's value exempt from school district taxes.

What it covers — and what it doesn't

The same caution as with the general exemption applies here.

These amounts apply to school district taxes. Your bill also includes the county and potentially a municipal utility district, an emergency services district, and others. Those entities may offer their own senior exemptions, in their own amounts, or none.

So your school district portion may be dramatically reduced, while other portions of the bill depend on your specific taxing entities. Look at your parcel's record on the appraisal district website.

The school tax ceiling

Once you qualify for the over-65 exemption, Texas generally places a ceiling on the school district taxes on your homestead. In general terms, the school tax amount won't rise above the level set when you qualify, unless you make significant improvements to the home.

This is one of the most valuable protections available to Texas retirees, because it provides predictability on what's usually the largest part of the bill.

If you later move to a different home within Texas, rules exist regarding how a ceiling may be carried to the new home. Ask your appraisal district how that would work in your situation.

How to claim it

File with your county appraisal district. You generally become eligible in the year you turn 65, and you apply for the exemption.

You must own and occupy the home as your primary residence. A second home or a lake house you visit on weekends doesn't qualify.

Confirm it's on your account. Check your appraisal district's online portal after filing.

Ask about timing if you buy partway through a year or turn 65 during it.

How this interacts with the rest of your budget

No state income tax. Texas doesn't tax personal income at the state level. For retirees, that generally includes retirement income that other states might tax. Confirm how this applies to your specific income sources with a CPA.

Insurance is the offsetting cost. Houston is the most expensive major metro in Texas for homeowners insurance, and waterfront has its own considerations. Get real quotes on specific homes before you build your budget.

Run the full picture. Income tax savings, property tax with exemptions, insurance, dues, utilities. A CPA can help you model it.

What this looks like on Lake Conroe

Lake Conroe spans more than one school district and different combinations of taxing entities. Your exemption applies to whichever school district serves your address, and other entities vary by location.

Two things I'd add from having made this move myself. Buy on retirement criteria — single-level living, proximity to medical care, a home that works in February. And come back in the off-season before you commit, because the lake in January is a different place from the lake in July.

Questions I get about this

Is the exemption automatic when I turn 65?

No. You have to apply with your county appraisal district.

Does it apply to my lake house if I live elsewhere?

No. Only your primary residence qualifies.

Will my whole tax bill be eliminated?

The exemptions apply to school district taxes. Other entities are separate. Check your parcel's record.

This article is general information based on Texas law as of 2026. It is not tax or legal advice, and I am not a CPA or attorney. Exemption amounts and rules can change — confirm current details with your county appraisal district or the Texas Comptroller, and consult a CPA about your situation.