At What Age Do You Stop Paying Property Taxes in Texas?
Is there any relief from Texas property taxes - a point where you, as a homeowner, can stop worrying about them? Unfortunately, there is no way to shake property taxes off entirely, but when you reach a certain age, you are eligible for some relief. At what age do you stop paying property taxes in Texas? Well, the hard truth is that you never actually stop completely. There are exemptions available for certain qualifying homeowners, but these do not entirely eliminate the tax obligation on the property.
How Do Texas Property Tax Exemptions Work?
The answer to the question, “When do you stop paying property tax in Texas?” can be found in the guidelines provided by the Texas Comptroller. According to the Comptroller, there is no provision for the cessation of property taxes at any stage. However, there is a Texas property tax exemption for people over the age of 65, which offers temporary tax relief for seniors. At the age of 65, seniors can apply for an exemption from Texas property taxes. If you are eligible for this exemption, instead of facing an annual property tax bill, your tax obligations will be frozen.
In order to qualify for the exemption, an individual must be 65 or older, be an owner or part-owner of a property, and the property in question must be the person’s primary residence. If the qualifying owner should die, their spouse, provided they are over the age of 55, may be eligible to have the exemption extended to them as well.
This means that, at the age of 65, you can file an affidavit requesting that the local tax authority stop collecting taxes on your homestead - not indefinitely, but for a specific period. The exemption provision - which also extends to disabled homeowners - relieves the qualifying homeowner of the need to pay taxes in the short term, but the cost will have to be covered at a later stage. The taxes that are due on the property will have to be paid 181 days after one of two events: 1) the homeowner’s death or 2) the sale of the property. At that point, the accrued taxes become due - plus a statutory interest rate that is less than the standard county 12.0% rate. This means the account must either be paid from the sale proceeds or the deceased’s estate.
This exemption is sometimes referred to as the “senior freeze” or homestead tax ceiling. If you qualify for this freeze, you will benefit from any possible tax rate reductions and keep tax rate increases from affecting you. Of course, this does not take into account any potential improvements on your property. Should you do any further construction or renovations, the increased value of the property will still lead to higher taxes, even though the rate remains fixed.
For homeowners ages 65 and older or those receiving disability benefits under the federal old-age, survivors, and disability insurance program administered by the Social Security Administration, the Texas legislature provides tax relief options. You may defer or postpone paying district property taxes on your primary residence by filing for a homestead exemption. It’s important to note that the value of your property plays a role in determining the amount of taxes owed, but the homestead exemption ensures that the taxable property value cannot increase, offering significant relief. If you move to another home, you may need to refile for an exemption on your new primary residence. Additionally, disabled homeowners may qualify for disability tax exemptions to reduce their annual property tax obligations. The county appraisal district will review your eligibility and the exemption increases in subsequent years as long as you live in the property. This limit on the amount of taxes owed provides ongoing relief for qualifying individuals.
To apply for the senior tax freeze, you must submit your application to your county appraisal district (CAD) by April 30th of the current tax year. If your application is approved, your property taxes will be fixed at the same amount for any forthcoming tax years. You would not have to pay this amount immediately. Instead, the bill would only fall due in the event of your passing or the sale of the property.
How American Finance & Investment Co., Inc. Can Help
American Finance & Investment Co., Inc. (AFIC) has been assisting Texas property owners with their financing needs since 1946. Founded by a group of El Paso businessmen, the company was first established to serve the needs of El Pasoans, but has since expanded its reach statewide. As a family business owned and operated by three generations of finance professionals, AFIC combines an understanding of family needs with a deep knowledge and experience of the financial industry.
For those who can’t take advantage of a tax freeze, American Finance & Investment Co., Inc. (AFIC) offers our clients an affordable, hassle-free way to manage their Texas property taxes. We can ensure that your account with the local government tax office is paid in full and will work out a manageable repayment plan for you. AFIC can provide you with an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:
- Quick and completely online process
- No money down
- No credit check
- Free 30-day rate match
- Match competitors and beat their rate by 1%
- Avoid high penalties and foreclosure
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.
