Homestead Exemptions-Property tax breaks for over 65? (Houston, Dallas: for sale, how much, house)

[lallen1]

Hi, can you all tell me if there is much of a property tax break for those over 65 in Texas? Does it differ from city to city and county to county? ie, is it different in Houston than in Dallas? We are thinking about moving to the Dallas area and we know that the property taxes are pretty high. Just wondering about how much our taxes would be cut if, for example we had a property valued at $265K and paid around $5500 in property taxes annually, about how much would it be cut when turning 65? (I know they say you get a $10k exemption for school taxes, but I am having trouble with the math).

[Aggielina]

It varies, depending on what the city council wants to do when it sets the budget. University Park offers an over 65 exemption of $372,000. Dallas offers $90,000. Plano only offers $10,000. You have to look at all the exemptions offered by the taxing jurisdiction where the property in question is located, because cities, counties, and school districts do not offer the same exemptions.

It always bugs me when someone tries to compare taxation in cities by ONLY looking at the tax rate, because tax exemptions vary so much. For example, Dallas offers the optional homestead exemption of 20%, but Richardson doesn't, and Richardson has a much lower tax rate than Dallas. However, if you were to do the math for city taxes on a $100K house in both cities, without disabled or over 65 exemptions, taxes on the house would be a smidge lower in Dallas despite Dallas having a much higher tax rate.

You can find rates and exemptions on each county's appraisal district web site.

[FalconheadWest]

The Over 65 exemption caps your school taxes, that's it. You first have to purchase the house and deal with the current tax value. Then, once you claim a Homestead exemption on the property, you also put the Over 65 exemption on the property. That means in future years, your SCHOOL taxes can't go up. That doesn't mean your taxes won't go up and your assessed value won't go up. It means your SCHOOL taxes are capped and can't go up.

I'm not sure why the above posted said Richardson doesn't have a Homestead Exemption. EVERY area has a Homestead Exemption, but the amount will different.

[Katana49]

Originally Posted by FalconheadWest

I'm not sure why the above posted said Richardson doesn't have a Homestead Exemption. EVERY area has a Homestead Exemption, but the amount will different.

Don't be so sure. Prosper didn't have a Homestead Exemption until the 2016 tax year, I'm sure there are some areas that do not have one either.

[RedTexanTea]

Originally Posted by lallen1

Hi, can you all tell me if there is much of a property tax break for those over 65 in Texas? Does it differ from city to city and county to county? ie, is it different in Houston than in Dallas? We are thinking about moving to the Dallas area and we know that the property taxes are pretty high. Just wondering about how much our taxes would be cut if, for example we had a property valued at $265K and paid around $5500 in property taxes annually, about how much would it be cut when turning 65? (I know they say you get a $10k exemption for school taxes, but I am having trouble with the math).

Collin County has a fairly decent online tax calculator that will allow you to select your exemptions.

Find an address you want to model the taxes on, use the tax estimator and select your exemptions. You can run the tax estimator with and with out the exemptions and you can see the tax difference.

Here is an example.
4545 Fargo Dr Plano (only house in 75093 for sale at $265K)
Taxes no exemption $5017
Taxes homestead $4419
Taxes homestead + 65 $4007

Welcome to Collin County, Texas Online

[MurphyPl1]

Murphy has no homestead exemption.

[Johnhw2]

Im over 65 and my tax bill shows a cap in taxes for all four entities I pay property taxes. The major ones I pay or Plano City and ISD and Collin County. They all appear to be capped at the amount of taxes in the year I got my 65 exemption. This experience does not match the words I have heard over time here and elsewhere. Its an extremely good deal in my case as the taxes when I turned 65 were based upon a home appraised value around $200k lower than it is now.

OP though I lived ibefore moving here I can not contrast the over 65 treatment as I did not experience it in Houston where I lived inthe city and Harris County and was in Katy ISD.

[UnfairPark]

I’m not 65 yet but my older neighbors say Plano & Collin are pretty good compared to most places.

In general Richardson(Collin County part) and Plano may have lower exemption than Dallas but overall rate is low and city/school district/County services are many times better than what Dallas offers.

[adixyz]

Flower Mound offers $100,000 exemption from taxation once they reach age 65. Their current property tax (2.08%) is relatively low in DFW metroplex. Check with Denton county and Town for the latest information.

[oldoak2000]

Originally Posted by lallen1

Hi, can you all tell me if there is much of a property tax break for those over 65 in Texas? Does it differ from city to city and county to county? ie, is it different in Houston than in Dallas? We are thinking about moving to the Dallas area and we know that the property taxes are pretty high. Just wondering about how much our taxes would be cut if, for example we had a property valued at $265K and paid around $5500 in property taxes annually, about how much would it be cut when turning 65? (I know they say you get a $10k exemption for school taxes, but I am having trouble with the math).

in general, over 65 won't be 'cut' much at all, but will be 'capped' (wont continue to increase as property value increases)... so you'll still be paying ~ $5000/yr even till & when you're 106 !!!