Are Senior Tax Breaks Still Fair? The Fed's New Data Says…

Updated October 19, 2026

Americans 75 and older are now the wealthiest age group in the country. In Texas, they also get the biggest property tax breaks. Both things are true. Whether that's fair is the real question.

What the Fed found

The richest households in America are now the oldest ones. That's the headline from the Federal Reserve's 2025 Survey of Consumer Finances, which comes out every three years.

Here's how 75+ households stack up against the youngest ones (inflation-adjusted, 2022 to 2025):

• 75 and older: $504,000 median net worth, the highest of any age group.
• Under 35: $33,000 median net worth, down 23% since 2022.

Median income for 75+ households rose 24% to about $67,000. Households aged 65 to 74 saw net worth jump 37%, according to CBS News.

Why the surge? Stocks and home values. The S&P 500 gained about 78% from late 2022 through 2025.

The gap isn't the whole story, though. Nearly 10% of Americans 65 and older still lived below the poverty line in 2025. "Seniors" is not one group.

How Texas taxes homeowners 65 and older

Texas gives seniors two big breaks on school taxes, which make up the largest part of most bills.

• A bigger exemption. Every homeowner gets $140,000 off their home's value for school taxes. Owners 65+ get an extra $60,000, for $200,000 total. Voters approved both increases in November 2025.
• A tax freeze. Once you qualify, your school tax bill is capped at what you paid that first year. Your home's value can double. Your school tax can't go up, unless you add something big like a pool or a new room.

Some cities and counties freeze their taxes for seniors too. That's a local choice, so it varies by where you live.

Quick example: same house, two bills

Two neighbors each own a $400,000 home. Assume a school tax rate of $1 per $100 of value (an illustration, not your rate).

• Owner, age 45: $140,000 exemption, $260,000 taxable, $2,600 school tax. If the home's value jumps, the bill rises (up to 10% a year).
• Owner, age 70: $200,000 exemption, $200,000 taxable, $2,000 school tax. If the home's value jumps, the bill stays frozen.

Same street. Same house. One bill can climb every year. The other can't.

The case that senior breaks are still fair

Supporters say the freeze was never about how rich you are. It's about not getting taxed out of a home you already paid for.

• Wealth isn't cash. A $500,000 net worth often means a paid-off house and a retirement account. Neither pays a property tax bill that jumps 15% in a year.
• Fixed incomes are real. A 24% income gain on paper still leaves the median 75+ household near $67,000. For many, Social Security is most of their income. (Here's our guide to property tax relief on a fixed income.)
• They already paid in. Most seniors spent decades paying school taxes, often while their own kids were in school.
• Medians hide the bottom. Nearly 1 in 10 Americans 65+ live in poverty. Means-testing adds paperwork that the people who need the break most are least likely to finish.

The case that they aren't

Critics say the rules were written for a retiree who barely exists anymore, and someone else picks up the bill.

• The money has to come from somewhere. When one group's bill is frozen, schools still need funding. Rates and values for everyone else carry more of the load.
• It's age-based, not need-based. A 70-year-old with a $2 million home gets the same freeze as a widow on Social Security. In Texas, the freeze has no income limit.
• The wealth gap is going the wrong way. Under-35 households lost 23% of their net worth since 2022. Many are first-time buyers paying full freight on homes bought at peak prices.
• Freezes keep people in place. Locked-in low bills make it costly to downsize, which keeps family-sized homes off the market.

What this means for your tax bill

The fairness debate will play out in Austin. Your bill shows up every October. Here's what you can control now.

If you're under 65: You can't freeze your bill. But you can challenge the value it's based on. Somewhere between 30% and 60% of properties are over-assessed, and only about 5% of owners ever protest. A lower value means a lower bill this year and a lower starting point for next year.

If you're 65 or older: The freeze caps your school taxes, not your home's value. A wrong value still raises your city and county taxes if those aren't frozen where you live. Three things to check:

1. Did you apply? The over-65 exemption isn't automatic. File with your county appraisal district within a year of turning 65. Here's every senior break you can claim without a protest.
2. Is your value right? A freeze locks in whatever value you started with. If it was too high, you're stuck paying on it.
3. Moving? You can often carry your freeze percentage to a new Texas home.

Either way, start with your number. TaxDrop's licensed Texas consultants won a reduction on 92% of the protests we've closed. Check if your home is over-assessed. It's free.

Sources

• CBS News: Americans over 75 are now the richest, Fed data shows
• NBC Bay Area: Americans 75 and older are the wealthiest, Fed survey finds
• Hereford ISD: 65+ tax impact
• Texas homestead exemption rules 2026 (Props 11 and 13)