Turning 65 in Dallas and wondering how to lower your property tax bill? You may be able to reduce your taxable value and lock in your school taxes, which can provide real peace of mind as you plan ahead. If you live in Preston Hollow or North Dallas, the rules are clear but vary slightly depending on county lines and city limits. In this guide, you will learn what the over-65 exemption does, who qualifies, how to apply with DCAD or CCAD, and how the new City of Dallas benefit can boost your savings. Let’s dive in.
What the over-65 exemption does
The Texas over-65 residence homestead exemption reduces the taxable value used to calculate your school taxes and can trigger a school tax ceiling that limits future increases. It sits on top of your general homestead exemption. You apply through your county appraisal district. This state overview explains the framework.
If your Preston Hollow home is inside Dallas city limits, the City of Dallas increased its over-65 or disabled homestead exemption to $175,000 starting with the 2025 tax year. This reduction applies to the City portion of your bill only. See the City’s announcement.
How the school tax ceiling works
When your over-65 exemption starts, Texas sets a school tax ceiling. The dollar amount of school taxes you pay in the first qualifying year becomes your cap and will not increase while you continue to own and live in the home. Significant improvements, like an addition, can adjust the ceiling. CCAD’s tax ceiling FAQ outlines the basics.
Other taxing units
Cities, counties, hospital districts, and community colleges may offer their own optional over-65 exemptions or tax limitations. These vary by entity. Check which taxing units cover your address and what they offer through your county appraisal district.
Who qualifies in North Dallas
You qualify if you own and occupy the property as your principal residence and you are 65 or older in the year you claim the exemption. If your birthdate is already on file, the appraisal district may apply it automatically. Once approved, you generally do not reapply each year, but appraisal districts now verify exemptions periodically. DCAD explains the re-verification process.
Dallas vs. Collin County: where to file
- Dallas County properties: file with the Dallas Central Appraisal District (DCAD). DCAD’s support page covers status and processing.
- Collin County properties (including some Far North Dallas addresses): file with the Collin Central Appraisal District (CCAD). Start with CCAD’s tax ceiling FAQ.
How to apply in three steps
Confirm your jurisdiction
- Check whether your property sits inside Dallas city limits and whether it is in Dallas or Collin County. This determines whether you file with DCAD or CCAD.
Gather your documents
- Form 50-114 (Residence Homestead Exemption Application). Review the standard form and instructions.
- Texas driver’s license or state ID that matches the homestead address.
- Proof of ownership, such as a deed. Bring supporting records if claiming as a surviving spouse.
Submit and track
- File with DCAD or CCAD online, by mail, or in person following the district’s instructions. Allow up to about 90 days for processing and keep proof of submission. DCAD’s status page is helpful during review.
Deadline tip: File by April 30 to maximize the chance your exemption applies to the current tax year. Texas law allows certain late filings, so ask your appraisal district if you missed the date. Form 50-114’s guidance covers timing basics.
Moving? Transfer your tax ceiling
If you sell and buy another Texas homestead, you can usually transfer your school tax ceiling. The ceiling is recalculated as a percentage on the new home. Request a transfer certificate and file the transfer with your new appraisal district. DCAD outlines the transfer steps.
Surviving spouse rules
A surviving spouse may be able to continue the over-65 benefit if they meet age and occupancy requirements and file with the appraisal district. You will need documentation such as a death certificate and proof of ownership. DCAD provides a surviving spouse guide.
Consider tax deferral carefully
If you are 65 or older, you may be able to postpone property tax payments on your homestead by filing a tax deferral affidavit. Deferred taxes accrue interest and become due when the deferral ends, which can affect you, your lender, or your heirs. Review the consequences before filing. TexasLawHelp explains the risks in plain language.
Quick savings example
If your home is inside the City of Dallas and you qualify for the general homestead plus the $175,000 City over-65 exemption for 2025, your City-taxable value can drop significantly. That City reduction stacks with your general homestead on the City portion of your bill. Exact savings depend on your parcel and current tax rates. Review the City’s announcement for context.
Common pitfalls to avoid
- ID mismatch: Your Texas ID should show the homestead address you are claiming.
- Missing April 30: File by the best-practice date and ask about late filing if you miss it.
- Ignoring verification: Respond promptly to appraisal district verification notices.
- Assuming taxes cannot change: Major improvements can adjust your school tax ceiling. CCAD explains how improvements affect ceilings.
Payment options to ask about
Some tax offices allow installment options for homeowners with over-65 or disability exemptions. Policies vary by taxing unit. For example, school district tax offices often publish installment details. Review a school tax office example to understand how installments can work.
Ready to talk through timing a move, transferring your tax ceiling, or confirming which city and county lines apply to your address? Reach out to the neighborhood-savvy team at Hewitt+Saucedo Realty Group for clear next steps tailored to your situation.
FAQs
What is the Texas over-65 homestead exemption and tax ceiling?
- It reduces your taxable value for school taxes and sets a school tax ceiling in the year you qualify, which caps future school taxes while you own and live in the home; cities and other entities may offer additional relief. See the state overview.
Does the City of Dallas $175,000 over-65 exemption apply in Preston Hollow?
- Yes, if your property is inside Dallas city limits, the City’s $175,000 over-65 exemption reduces the City portion of your taxable value starting in 2025. Read the City announcement.
How do I file if my North Dallas home is in Collin County?
- File your over-65 application with CCAD, not the city or school district, and ask about any local optional benefits. Start with CCAD’s tax ceiling FAQ.
Can I claim the exemption the year I turn 65?
- Yes. You are eligible for the entire year you turn 65, once you apply and are approved. Review the state guidance.
Will my school taxes ever increase after the ceiling starts?
- The ceiling caps your school taxes, but additions or significant improvements can adjust it; ordinary maintenance does not change the ceiling. See CCAD’s explanation.
What if I missed the April 30 filing date?
- Texas allows certain late filings and retroactive relief in many cases, so still apply and ask your appraisal district about your options. Form 50-114 guidance covers timing.
Can I pay property taxes in installments with an over-65 exemption?
- Many tax offices offer installment options for over-65 or disability exemptions, but rules vary by entity. See a school tax office example.
