How does the over-65 homestead tax ceiling work ?
TEXAS homeowners who reach age 65 are granted a special exemption much more significant than the general homestead exemption. Beyond that, the year in which the homeowner turns 65 is called the “freeze” year, in which a maximum tax limitation is placed on school district taxes.
This “freeze” usually only applies for the school district in which the property is located. It does not affect most other taxing entities.
Qualifications for the Over-65 exemption and tax ceiling include:
- You are age 65+
- Own the home on January 1 of the tax year
- Claim it as your primary residence
- Claim no other property as a homestead
The over-65 homestead tax ceiling may be “transported” from one school district to another when the homeowner moves. The
tax freeze (or upper limit of taxes) applies to the new school district at the same percentage of taxation as was the case in the prior school district. The rules regarding the transporting of over-65 tax freezes can be complicated.
As always comments are welcomed and encouraged …
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