Property Tax Deductions: Over 65 and Disabled Person

Property Tax Deductions Basics with Top Mortgage lender in Dallas

The main source of property tax deductions on a home is the homestead exemption. Here, we talk about the Over 65 Tax Exemption and the Disabled Person Tax Exemption. Also, we focus mainly on the counties in North Texas. Check out our homestead exemption page to get more details on this tax deduction. Furthermore, check out our after closing page for next steps after buying a home. Lastly, as always contact the Mortgage Mark Team with any questions.

Property Tax Deductions

Right after qualifying, disabled homeowners and those over age 65 may be entitled to additional property tax deduction. The homeowner must choose one or the other if they qualify for both exceptions. Therefore, they cannot receive both exemptions.

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 over 65 homeowners tax deductions

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. It’s most noteworthy that only one owner needs to be 65 or older to qualify. Taxing units (like cities and counties) often offer Over 65 homestead exemptions of at least $3,000 and sometimes much more.

School districts automatically grant an additional $10,000 exemption for qualified persons who are 65 or older. Furthermore, the school tax ceiling is an additional advantage of the Over 65 exemption. At this point, your school taxes will not increase unless you make improvements to the home.

Surviving Spouse of the 65 or Older Homeowner

In the event the spouse over 65 dies, their surviving spouse may continue to receive the property tax deduction. However to do so, the surviving spouse must meet three conditions. First of all, they would need to be age 55 or older at the time of the spouse’s death. Secondly, 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, if offered, the spouse can continue the County, City or Junior College tax limitation or ceiling.

Disabled Veteran or Surviving Spouse

disabled veteran or surviving spouse tax deduction

A veteran disabled while serving with the U.S. Armed Forces can receive a Disabled Veteran Exemption. Additionally, the surviving spouse or unmarried child (under the age 18) of a disabled or deceased Veteran (killed 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 they served
  2. A Texas resident
  3. Have a service-connected disability
  4. Choose one property to receive the exemption

The exemption amount depends on the veteran’s disability rating from the branch of the armed service.

Property Tax Deductions Disabled Veteran or Surviving Spouse Exemption Chart
There are however others who qualify for an exemption of $12,000. These include veterans age 65 or older with at least a 10% disability rating, veterans who are totally blind in one or both eyes, or veterans who have lost 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. This must indicate that the veteran received 100% disability compensation due to a service-connected disability, and had a rating of 100% disabled or individual unemployability.