Last updated: September 2026
Two different tools, often confused: the tax ceiling freezes what you owe school taxes at; the tax deferral lets you postpone paying whatever bill you do have. Here's each one, separately, in dollar terms.
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Homeowners 65 or older, or who meet Social Security's definition of disabled, get an additional $60,000 off their school-tax value on top of the general $140,000 homestead exemption — $200,000 total (Tax Code §11.13(c)–(d)). See our full exemptions guide for every exemption amount. This page is about the two other benefits that come with turning 65 that don't get nearly as much attention: the ceiling and the deferral.
Once you qualify for the age-65 exemption, your school district taxes are frozen at whatever dollar amount they were the year you first qualified (Tax Code §11.26) — a "tax ceiling." From then on, your school tax bill on that homestead can't go up because your appraised value rises. It can still go up if you add improvements (a new addition, a pool) beyond routine repairs, and it can go down if your appraised value or the tax rate drops. A surviving spouse who is 55 or older when the homeowner dies can keep the same ceiling on the same home.
Selling your home doesn't mean starting over at full value on the next one. Under Tax Code §11.26(h), you can transfer a percentage of your old ceiling to a new Texas homestead — the percentage is based on the ratio between your last year's frozen tax amount and what you would have paid without the ceiling that year. Request a Tax Ceiling Transfer Certificate (Comptroller Form 50-272) from the appraisal district that granted your previous exemption, and bring it when you file your homestead exemption application on the new home.
The school tax ceiling is mandatory statewide. Counties, cities, and junior college districts aren't required to offer the same freeze on their own portion of your bill, but Tax Code §11.261 lets them adopt one locally if they choose to. Whether yours has is worth checking directly with that taxing unit — it varies city to city and county to county, and it's a separate decision from whether they've adopted an optional homestead exemption percentage.
A deferral is different from a ceiling — it doesn't reduce or freeze what you owe, it lets you postpone paying it. Under Tax Code §33.06, a homeowner 65 or older, or disabled, can file a deferral affidavit with their appraisal district that stops the county from forcing collection — including foreclosure — on delinquent taxes for their homestead for as long as they own and live in it. Interest still accrues on the deferred amount, currently 5% per year, which is meaningfully lower than ordinary delinquent-tax penalties and interest. The deferred taxes remain a lien against the property; they (plus accrued interest) become due within a limited window after the home is sold, after the homeowner no longer qualifies for the exemption, or — subject to protections for a surviving spouse who also qualifies — after the homeowner's death.
| Tax ceiling | Tax deferral | |
|---|---|---|
| What it does | Freezes your school tax bill | Postpones payment (with interest) |
| Application needed? | No — automatic with the age-65 exemption | Yes — a separate affidavit |
| Debt created? | No | Yes — becomes due later, plus interest |
| Covers which taxes? | School district always; county/city/junior college only if locally adopted | All taxing units on the homestead |
Most eligible homeowners should have the ceiling in place automatically and never need the deferral. The deferral is worth filing specifically when you're behind, or about to fall behind, on a bill the ceiling doesn't fully solve.
The ceiling comes with your age-65 or disabled homestead exemption — file Form 50-114 with your county appraisal district and check the applicable box; nothing further is required for the ceiling itself. For the deferral, file Form 50-126 (Age 65 or Older or Disabled Homeowner Property Tax Deferral Affidavit) with the same office. Both are free to file — no company needs to be paid to submit either one.