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About 60% of Texas Homeowners 65 and Older Pay No School Property Tax, Report Says

A reported estimate says about 60% of Texas homeowners 65 and older owe no school-district property tax. The exemptions do not erase every local property-tax bill.
From TheFinanceBase Team4 min to read
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About 60% of Texas homeowners age 65 and older no longer pay school property taxes, according to an analysis by state Sen. Paul Bettencourt’s office reported by The Texas Tribune on September 30, 2026. That is an attributed estimate—not a claim that 60% of older Texans owe no property taxes at all. A $0 school-district bill can coexist with city, county, community-college or other local property taxes.

What the 60% figure means

The estimate describes the share of Texas homeowners age 65 and older who owe no school-district property tax. It comes from an analysis by the office of Sen. Paul Bettencourt, as reported by The Texas Tribune. The underlying county-level data file was not available for direct review, so the figure should be understood as a reported estimate, not an independently verified count.

The Tribune also reported that nearly 2.4 million Texans no longer pay school property taxes. That is a reported count of people, not the same measure as the 60% share of older homeowners. Neither figure means those households pay no property taxes to any local taxing unit.

How the over-65 school-tax relief works

Homestead exemptions reduce taxable value

Texas school districts must exempt $140,000 of the appraised value of a qualifying residence homestead. An eligible homeowner who is at least 65, or has a qualifying disability, receives an additional $60,000 school-district exemption. For an eligible senior, the two exemptions reduce the home’s taxable value for school taxes by $200,000. They do not guarantee a zero bill: the remaining taxable value, local school tax rate and other applicable rules determine whether school taxes are still due. See the Texas Comptroller’s property-tax exemption guidance and Texas Tax Code Chapter 11.

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Age alone does not establish eligibility

To qualify for the over-65 exemption, a homeowner must be at least 65, have an ownership interest in the property and use it as a principal residence. Applications are generally made through the county appraisal district, whose chief appraiser determines eligibility. The Comptroller lists the general filing deadline as before May 1; check your appraisal district’s current instructions and forms. The Comptroller’s exemption guidance provides the statewide overview.

The tax ceiling is a separate protection

Qualifying for the over-65 exemption can also establish a school-district tax ceiling. The ceiling is based on the school-tax amount in the year the homeowner qualifies and generally limits increases while that owner owns and lives in the home. If the school taxes calculated later are below the ceiling, the owner pays the lower amount. The ceiling limits an amount; it is not automatically a $0 bill.

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If the owner moves to another Texas home, a percentage of the former ceiling may be transferred under the Comptroller’s rules. The ceiling applies to school-district taxes and depends on continued ownership and residence conditions. The Comptroller’s January 2026 guide describes it as a limit on the amount of school-district taxes paid while the qualifying owner owns and lives in the home; see the official exemption guidance.

How the reported averages compare

The reported statewide averages show relief for both senior and general homesteads, but they are averages of school-tax bills—not promises about an individual homeowner’s bill.

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Group or measure Reported figure What it represents
Homeowners age 65 and older About 60% pay no school property tax Share of older homeowners, based on Bettencourt’s office analysis reported by the Tribune in 2026.
Senior homesteads Average school-tax bill fell about 33% to $380 Reported statewide average, not an individual bill.
General homesteads Average school-tax bill fell 13.6% to $896 Reported statewide average, not an individual bill.
Texans paying no school property tax Nearly 2.4 million Reported count of people, not the percentage of senior homeowners.

The averages and count were reported from Bettencourt’s office analysis by The Texas Tribune. They describe different populations and measures; none establishes what a particular household owes.

Why school taxes can be zero while other property taxes remain

A homeowner’s property-tax bill can include charges from several local taxing units. The exemptions and ceiling discussed here concern the school-district component. City, county, community-college and special-district taxes may still be owed, depending on the property and applicable exemptions. A school-tax bill of zero is therefore not the same as an overall property-tax bill of zero.

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What the policy debate does—and does not—show

The Tribune’s account describes two mechanisms behind lower school-tax bills: expanded homestead exemptions and state money sent to school districts to reduce school tax rates. Supporters argue that property-tax relief helps older homeowners remain in their homes.

The story also presents a concern about how the cost of relief is distributed. Tax Foundation senior policy analyst Janelle Fritts told the Tribune that when many homeowners pay no school property taxes, other property classes—such as commercial property or rental housing—may take up more of the burden. That is an expert’s concern about potential distribution, not a measured finding that the reported relief has been fully shifted to businesses or renters. The available figures do not quantify a complete transfer of tax burden.

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Every Texan fiscal policy expert Shannon Halbrook offered a counterpoint in the Tribune: “But at the same time, if you can comfortably afford to pay your property taxes, then you should.” These positions frame a debate over the targeting and distribution of relief; the reported averages alone do not resolve it.

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