How The NEW $200K Tax Break Helps Seniors and Disabled Austinites Stay at Home

TL;DR
 Seniors and disabled homeowners in Austin will now receive up to $200,000 in school district property tax exemptions starting with the 2025 tax year. This expanded benefit was approved by Texas voters in the November 4, 2025 election. Eligible homeowners could save more than $2,000 per year, depending on home value and school tax rate. This exemption applies only to the school district portion of taxes and is separate from city, county, or special district taxes.

What Was Approved in the November Election

Texas voters passed a constitutional amendment that raises the school district homestead exemption for seniors and disabled homeowners from the previous $100,000 to a total of $200,000. This includes the new $140,000 base exemption plus an additional $60,000 targeted at seniors and people with disabilities.

When Does This Take Effect?

The exemption applies to the 2025 tax year, which means the savings will appear on property tax bills issued in 2026. Homeowners must have their exemptions properly filed and approved through their county appraisal district to receive the full benefit.

How Much Could You Save?

Let's look at a home in Austin valued at $500,000:

• With a $200,000 exemption, only $300,000 is subject to school taxes
• At a typical rate of $1.04 per $100, that means your school district tax bill would be around $3,120
• Compared to someone who does not qualify, that’s more than $2,000 in savings

The actual amount will vary based on the school district's tax rate, which is set locally.

Who Qualifies for This Exemption

This benefit is available to:

• Homeowners aged 65 or older
• Homeowners with a qualifying disability under Texas law

You must live in the home as your primary residence, and you must file the correct exemption form with your appraisal district. This is not automatic.

Why This Matters for Austin Families

Austin’s housing market has grown rapidly, and with that growth has come rising appraisals. For longtime homeowners on fixed incomes, this exemption can offer real relief. It gives families breathing room and allows seniors to stay in their homes longer.

Adult children caring for aging parents will also benefit. This exemption helps reduce the financial strain of supporting a multigenerational household and offers families more options.

Pros of the New $200K Exemption

• Significant savings on school district taxes
• Protects longtime homeowners from rising costs
• Encourages aging in place
• Supports multigenerational and disability-inclusive housing
• Locked in through a constitutional amendment

Cons and Things to Consider

• Applies only to the school district portion of the tax bill
• Other local taxes (city, county, hospital) still apply at full value
• Homeowners must apply to receive it
• Appraised values can still rise year to year
• Long-term impact on school funding depends on state reimbursements

Next Steps for Homeowners and Families

If you or your parents qualify, make sure the proper exemptions are filed with your local appraisal district. If you’re unsure what applies to your situation, I can help you walk through it.

Want to explore downsizing, retrofitting, or planning for long-term care at home? Let's talk about what makes the most sense for your next chapter.