At What Age Do You Stop Paying Taxes in Texas?

There is no specific age at which Texans are automatically exempt from paying taxes. However, seniors may qualify for various tax relief programs, particularly when it comes to property taxes. If you're a senior living in Texas, understanding these exemptions can help you reduce your tax burden and manage your finances more effectively.

Property Tax Relief for Seniors in Texas

Texas offers significant property tax relief for homeowners who are 65 or older. These benefits include:

  1. Homestead Exemption for Seniors
    Homeowners aged 65 and older can receive an additional $10,000 exemption on their school district property taxes. This is on top of the standard $40,000 homestead exemption available to all homeowners. Some local taxing entities, such as counties and cities, may offer additional exemptions for senior homeowners.

  2. Property Tax Freeze
    If you qualify for the senior exemption, school district property taxes on your home are “frozen” at the amount you owed when you turned 65. This means that even if your property value increases, your school district taxes will not go up, providing financial stability for retirees on a fixed income.

  3. Deferral of Property Taxes
    Seniors 65 and older can also defer their property taxes. This does not eliminate taxes but postpones payment until the home is sold or the owner passes away. Interest accrues at 5% annually, but this option can be helpful for those struggling with financial constraints.

Other Tax Considerations for Seniors in Texas

  • No State Income Tax: Texas does not impose a state income tax, meaning retirees do not pay state taxes on Social Security benefits, pensions, or retirement income.

  • Sales Tax: Seniors are still responsible for paying sales taxes on goods and services.

  • Federal Taxes: Even if you qualify for state property tax exemptions, you may still owe federal income taxes depending on your total income, including Social Security, pensions, and other retirement earnings.

How to Apply for Senior Tax Exemptions

To take advantage of these tax benefits, you must apply through your local county appraisal district. The process usually requires proof of age and homeownership.

Final Thoughts

While there is no age at which Texans stop paying taxes entirely, seniors can benefit from property tax exemptions and relief programs that significantly reduce their tax burden. If you or a loved one qualifies, it’s worth exploring these options to maximize savings in retirement.

George Dimov