Property Tax Deductions: Over 65 and Disabled Person

Property Tax Deductions Basics with Top Mortgage lender in DallasThe Homestead Exemption is the primary source of property tax deductions on a home. This article addresses the Over 65 Tax Exemption and the Disabled Person Tax Exemption for counties in North Texas. Check out our Homestead Exemption page for details on the homestead property tax deduction. Be sure to also check out our After Closing for additional “to do” items after becoming a homeowner.

Other Property Tax Deductions

Homeowners can save a ton of money overtime with the Over 65 and Disable Person property tax deductions. Check with your central appraisal district for specific details because the exemption amounts and process for filing can vary between county. The Central Appraisal Districts of North Texas are Dallas CAD, Collin CAD, Denton CAD, Tarrant CAD, and Rockwall CAD.

Over-65 Homeowners

A person who is 65 or older may receive additional exemptions. As soon as you turn 65 you become eligible for the Over 65 exemption. Only one owner needs to be 65 or older to qualify.

School districts automatically grant an additional $10,000 exemption for qualified persons who are 65 or older. Furthermore, an additional advantage of the Over 65 exemption is the school tax ceiling. Once you qualify, your school taxes will not increase unless you make improvements to the home. Taxing units (like cities and counties) often offer Over 65 homestead exemptions of at least $3,000 and sometimes much more.

Surviving Spouse of the 65 or Older Homeowner

A surviving spouse may continue to receive the property tax deduction in the event the Over 65 spouse dies.

The surviving spouse would need to meet three conditions to keep the property tax deduction. First they would need to be age 55 or older at the time of the spouse’s death. Second, the surviving spouse must live in and own the home. Lastly, they must apply for the exemption.

The Disabled Person property tax deduction and school tax ceiling will not transfer to the surviving spouse. However, the spouse can continue the County, City or Junior College tax limitation or ceiling (if offered).

Disabled Veteran or Surviving Spouse

A veteran disabled while serving with the U.S. Armed Forces or the surviving spouse or child (under the age 18 and unmarried) of a disabled Veteran, or of a member of the Armed Forces who was killed while on active duty, can receive a Disabled Veteran Exemption.

The veteran must be:

  1. Classified as disabled by the Veteran’s Administration or the armed services branch in which the owner served.
  2. Must be a Texas resident
  3. Have a service-connected disability.
  4. Choose only one property to receive the exemption.

The exemption amount that a qualified disabled veteran receives depends on the veteran’s disability rating from the branch of the armed service.
Property Tax Deductions Disabled Veteran or Surviving Spouse Exemption Chart
A disabled veteran may also qualify for an exemption of $12,000 of the assessed value of the property if the veteran is: age 65 or older with a disability rating of at least 10 percent, totally blind in one or both eyes, or has lost use of one or more limbs.

Note: An applicant for a 100% disabled veterans exemption (or the surviving spouse of a disabled veteran who qualified for the 100% disabled veterans exemption) must provide documentation from the United States Department of Veterans Affairs indicating that the veteran received 100% disability compensation due to a service-connected disability and had a rating of 100% disabled or individual unemployability.

Disabled & Over 65 Property Tax Deductions

Immediately upon qualification, homeowners that are disabled or age 65 or older may be entitled to an additional property tax deduction. The homeowner must choose one or the other if they qualify for both exceptions. Therefore, they cannot receive both exemptions.

Finally, the home’s value for school tax may be reduced by $10,000. An age 65 or older homeowner, or the Disabled Person homeowner, is entitled to a school tax ceiling. This ceiling automatically sets the property’s tax value for school taxes and protects it from future increases. A County, City or Junior College may also adopt to grant a tax limitation or ceiling. You may transfer the percentage of the school tax ceiling of your former home to a new home.