Texas Over-65 Property Tax Exemption & School Tax Freeze 2025

What changed with November 2025 voter approval — and what it means for Hill Country buyers

Texas has always had a strong over-65 property tax program. The November 2025 ballot delivered two additional improvements that took effect retroactively for the 2025 tax year. Here is a complete explanation of what is now available and how to claim it.

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What Voters Approved in November 2025

Proposition 13 — General Homestead Exemption to $140,000: All Texas homeowners (any age) now have $140,000 of their home’s value excluded from school district taxes. This increased from $100,000 (set in 2023) to $140,000. It took effect retroactively for the 2025 tax year. Approved with strong bipartisan support.

Proposition 11 — Over-65 Add-On to $60,000: Homeowners 65 and older receive an additional $60,000 school district exemption on top of the $140,000 general exemption. This increased from $10,000 to $60,000 — a $50,000 improvement. Combined total school district exemption for seniors: $200,000. Approved with 77% of the vote.

The School Tax Freeze: Your Permanent Ceiling

The school tax freeze is the most powerful long-term protection Texas offers seniors. The year you turn 65 and qualify for the over-65 exemption, your school district tax bill is permanently frozen at that year’s amount. It does not matter if your home appraises to double its current value or the ISD raises its rate — your school bill stays the same.

Example in Kerr County: You purchase at $500,000 in 2025 and turn 65. School-taxable value: $500,000 − $200,000 = $300,000. At Kerrville ISD’s rate of roughly $1.00/$100, your school bill is $3,000. That $3,000 is your permanent ceiling. In 2035 when your home may be worth $700,000, your school bill is still $3,000. The freeze only covers school taxes; county and city taxes can still increase, but the school portion — typically 50–60% of the total bill — is locked.

The freeze does not transfer automatically at 100%. If you sell and buy a new homestead, the freeze transfers proportionally — you get the same percentage savings, not the same dollar amount. If your old home’s school bill was 60% of the unfrozen amount, your new home’s school bill will also be capped at 60% of what it would otherwise be.

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No Income Test

Unlike many states’ senior property tax programs, the Texas over-65 exemption and school tax freeze are not means-tested. There is no income limit. The only requirements are: age 65 or older, and the property is your primary residence (homestead). A surviving spouse aged 55 or older who inherits the homestead maintains the freeze.

How to Apply

File Form 50-114 (Residence Homestead Exemption Application) with the Kerr Central Appraisal District. Check the Over-65 box. File as soon as you qualify. The exemption renews automatically each year once granted — you do not need to reapply annually. Electronic filing is available through the Kerr CAD website.

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