A tax ceiling (also called a tax freeze) locks in your school district property taxes at the amount you paid the year you turned 65 or became disabled. Your school taxes cannot increase above this ceiling regardless of how much your assessed value rises.
This is separate from the over-65 exemption, which reduces your taxable value. The tax ceiling is an additional benefit that caps your actual dollar amount owed to school districts.
The ceiling transfers if you move to a new home in Texasâit's calculated as a percentage that applies to your new property's taxes.
The tax ceiling is one of Texas's most valuable senior benefits, but many qualifying homeowners don't realize they have itâor that it transfers when they move.
If you're 65+ or disabled and haven't applied for your tax ceiling, you may be overpaying. The ceiling can only be established going forward (not retroactively), so every year you wait is money lost.
Already have a ceiling and thinking of moving? Your percentage carries to your new home, often preserving significant savings even on a more expensive property.
Maria turned 65 in 2020 when her school taxes were $3,200. She applied for her over-65 exemption and tax ceiling.
By 2025, her assessed value had increased significantly. Without the ceiling, her school taxes would be $4,800. But because of her tax ceiling, she still pays only $3,200 to the school district.
Annual savings from ceiling: $1,600
Note: Her city and county taxes can still increaseâonly school taxes are frozen.
Apply for the over-65 or disability exemption with your county appraisal district. The tax ceiling is automatically established when your exemption is approved. You must be 65+ or qualify as disabled under Texas law.
No. The mandatory ceiling only applies to school district taxes. Cities and counties may offer optional tax freezes, but they're not required. Check with your local taxing units to see if they participate.
Your ceiling transfers as a percentage. If your ceiling was 70% of what you'd otherwise owe, that 70% ratio applies to your new home. You must apply for the exemption and ceiling transfer at your new property.