Retiring in Central Texas

School Tax Freeze at 65 in Texas: How the Ceiling Works

Are school taxes frozen at 65 in Texas? How the tax ceiling works, the new $200,000 school exemption, how to apply, and what it does not cover.

Yes. In Texas, once you qualify for the age 65 or older homestead exemption, the school district taxes on your home are capped at a "tax ceiling," which is what most people call the school tax freeze at 65. Your school tax bill can go down, but it generally cannot go up, unless you add improvements to the home.

The freeze applies to the dollar amount of school taxes, not to your home's value, and you have to apply for it. This article is part of our guide to retirement planning in Austin and Central Texas.

How does the school tax freeze at 65 work in Texas?

Texas Tax Code Section 11.26 says a school district may not increase the total school taxes on the homestead of a person 65 or older above the amount it imposed in the first year that person qualified for the over-65 exemption.

School tax freeze at 65

A few points are worth knowing:

It freezes dollars, not value. Your appraisal district will keep appraising the home each year, and your market value can still rise. As Williamson Central Appraisal District puts it, the ceiling does not freeze your market value, assessed value or tax rates.
It can go down. If school taxes fall below the ceiling, you pay the lower amount.
It is recalculated when the state cuts taxes. When Texas raises the school homestead exemption or lowers school tax rates, the law recalculates the ceiling so that people who already have a freeze share in the relief. Travis Central Appraisal District notes that ceilings are now recalculated every year for this reason.
Improvements can raise it. If you add a pool, garage or room addition, the school district can add the tax on that new value, and the ceiling resets at the higher amount. Ordinary repairs and improvements required by government rules do not count.

What changed in November 2025?

On November 4, 2025, Texas voters approved two constitutional amendments that apply starting with the 2025 tax year:

Proposition 13 raised the school homestead exemption for every homeowner from $100,000 to $140,000.
Proposition 11 raised the additional exemption for homeowners who are 65 or older or disabled from $10,000 to $60,000.

Together, a homeowner 65 or older now receives at least $200,000 off the appraised value of the home for school taxes. Some school districts add local option exemptions on top of that. You can read more in our article on the Texas over-65 property tax exemption.

Under Tax Code Section 11.26, those bigger exemptions also lower existing ceilings. If you already had a freeze, your ceiling should generally have come down when the higher exemptions took effect.

A simple example

Here is an illustration with round, hypothetical numbers. Actual rates differ by school district and change every year.

Picture a Cedar Park couple who have about $2 million saved for retirement. One spouse turns 65 this year, and their home is appraised at $800,000.

Appraised value: $800,000
Less the $140,000 school homestead exemption and the $60,000 over-65 exemption
School taxable value: $600,000
At a hypothetical school tax rate of $1.00 per $100 of value, the school tax is $6,000

That $6,000 becomes their ceiling. If the home's appraised value rises to $900,000 a few years later, the school tax without a freeze would be $7,000 at the same rate. With the freeze, they still pay no more than $6,000. Over a long retirement, that is one less rising cost to plan around.

Who qualifies for the over-65 tax ceiling?

According to the Texas Comptroller, you qualify for the age 65 or older exemption if you:

Are 65 or older
Have an ownership interest in the home
Live in the home as your principal residence

Only one owner needs to be 65. Homeowners who meet the Social Security Administration's definition of disabled also qualify for a school tax ceiling. A person who is both 65 and disabled may receive both exemptions, but not from the same taxing unit.

A home placed in a qualifying living trust can still keep the ceiling, as long as the owner or spouse is a trustor and is entitled to live there. If you are weighing a trust, see living trust vs. will in Texas.

How do I freeze my school taxes in Texas?

You apply with your county appraisal district using Form 50-114, Application for Residence Homestead Exemption. Filing is free, and you do not reapply each year unless the chief appraiser asks.

Get Form 50-114 from the Comptroller's website or your appraisal district. Williamson Central Appraisal District (WCAD) and Travis Central Appraisal District (TCAD) both accept applications online.
Check the box for "Person Age 65 or Older (or Surviving Spouse)."
Attach a copy of your Texas driver's license or state ID. The address must match the home.
Submit it to the appraisal district where the home is located.

Local details are covered in our guides to the Williamson County over-65 exemption and the Travis County over-65 homestead exemption.

When should I apply?

You qualify the year you turn 65, and the exemption applies to that entire tax year, even if your birthday is in December. Tax Code Section 11.43 says you must apply no later than the first anniversary of the date you qualified.

If you already have a general homestead exemption and the appraisal district has your correct birth date, Texas law allows the district to add the over-65 exemption automatically. Confirm it on your next appraisal notice.

If you missed the deadline, Texas allows a late homestead application for up to two years after the delinquency date for that year's taxes, and any overpaid tax is refunded.

Can I take my school tax freeze with me if I move?

Yes, within Texas. You transfer the same percentage of the ceiling, not the dollar amount.

Say your old home's school taxes were capped at $3,000 when they would have been $6,000 without the freeze. You were paying 50 percent. If your new home would have school taxes of $8,000 in the first year, your new ceiling would be 50 percent of that, or $4,000.

To transfer, ask your old appraisal district for a tax ceiling transfer certificate, then answer "yes" to "Are you transferring a tax limitation?" on Form 50-114 for your new home. Run the numbers before you buy.

What happens to the freeze when a spouse dies?

The surviving spouse can keep the school tax ceiling if:

The surviving spouse was 55 or older when the qualifying spouse died
The home was the surviving spouse's residence homestead at that time
It remains the surviving spouse's residence homestead

The survivor should send the appraisal district a death certificate and proof of age. For related questions after a loss, see Texas community property at death.

What does the school tax freeze not cover?

The freeze is mandatory only for school district taxes. It does not cover:

County, city and junior college taxes, unless that taxing unit has adopted its own ceiling. Some have. WCAD says the over-65 ceiling also applies to Williamson County and Williamson County farm-to-market/road taxes. Check your appraisal district's list of exemptions by taxing unit to see which ones apply to you.
Other special district taxes, such as many utility district taxes, which can keep rising.
New improvements, which can raise the ceiling.
Insurance, HOA dues and maintenance, which often rise faster than taxes.

Also note that a city or county ceiling generally transfers only if you move within that same taxing unit. A school ceiling transfers anywhere in Texas.

One more option: Texas allows homeowners 65 or older to defer property taxes on their homestead under Tax Code Section 33.06. Interest still accrues and a lien stays on the home, so it is a planning decision, not free money.

Frequently asked questions

Do you have to pay school taxes after 65 in Texas?

Usually yes, but the amount is capped. Once you qualify for the over-65 exemption, your school taxes cannot rise above your ceiling except for new improvements. With the new $200,000 combined exemption, some homeowners may owe little or no school tax.

What taxes are frozen at 65 in Texas?

School district taxes are frozen for every qualifying homeowner. County, city and junior college taxes are frozen only if that taxing unit has adopted a ceiling.

Is the over-65 exemption automatic in Texas?

Not always. If you already have a homestead exemption and the appraisal district has your birth date, it may be added automatically. Otherwise, file Form 50-114.

How much is the over-65 homestead exemption in Texas?

For school taxes, it is $60,000 on top of the $140,000 general homestead exemption, or $200,000 in total. Counties, cities and some school districts may offer more.

Does the freeze go away if I sell my house?

The ceiling on your old home ends, but you can transfer the same percentage of it to a new Texas homestead.

Talk it through with us

A school tax ceiling is one piece of a bigger picture: where you live, how much income you need, and how housing costs fit with Social Security, Medicare and taxes. If you are turning 65 or thinking about downsizing, book a Financial Clarity Session with our team. Vital Wealth & Retirement has helped Central Texas families plan for retirement since 2005.