Considering retirement in the Austin area? Perhaps you’re moving here to be near kids and grandkids or maybe because you’re trying to get away from the higher cost of living states. Though Texans enjoy a lower cost of living in a lot of categories, housing costs and especially property taxes are something to budget for and consider. Texas property taxes can be high—but there are exemptions and caps designed to protect seniors. Here’s an in depth explanation of Texas property tax exemptions for seniors, with a focus in Travis, Hays, and Williamson Counties. How you can reduce your tax liability with exemptions and a bonus tip for keeping property taxes as low as possible year after year.
Texas Property Tax Exemptions for Seniors
Exemptions are the best way to lower your property tax burden. When you’re over 65, you not only qualify for the homestead exemption (if this property is your primary residence), but an additional over-65 exemption which further reduces your property tax burden. Here is a closer look at both and legislation that might further reduce your property tax bill if it passes in November 2025.
📉 Key Exemptions for Seniors
1. Homestead Exemption
- All Texas homeowners who live in their home can apply — and must by April 30 to affect that year’s taxes. It cuts the school tax portion by $100,000 off your home’s taxable value
- Additional county exemptions may apply (e.g., farm‑to‑market roads), typically another $3,000.
- Also enforces a 10% annual cap on the increase in appraised value for your homestead
2. Over‑65 (and Disabled) Exemption
- An extra $10,000 off school taxes currently
- Additional age‑65 exemptions if offered by local taxing entities.
- A value freeze: your school taxes are based on the home’s appraised value the year you turn 65—no increase allowed thereafter
🛡️ Key Protections for Seniors
Property Tax Caps & Rate Limits
- The 10% appraisal cap shields against sudden spikes in taxable value
- Proposed legislation (SB 4 & SB 23) could further boost exemptions:
- School homestead exemption rising from $100K to $140K, with another $60K extra for seniors/disabled—capped at $200K total
- These bills are contingent on voter approval in Nov’25
Local Insights: Travis, Hays & Williamson Counties
Here’s how these exemptions and protections play out in the major Austin-area counties as of the 2024 tax year:
| County | School Tax Rate | County Tax Rate | Combined Rate* |
| Travis | ~0.95% | ~0.34% | ~1.29% |
| Hays | ~1.15% | ~0.31% | ~1.46% |
| Williamson | ~0.89% | ~0.36% | ~1.25% |
* Estimated averages combining school districts and county tax; city/MUD taxes can add 0.2%–0.6%.
- Travis County combined school and county rate near 1.29%
- Hays County around 1.46%, and Williamson County about 1.25%
- Including city/MUD levies, total property tax rates in Austin metro typically range 1.6%–2.4% .
Example: A $500,000 home in Round Rock (Williamson County) at ~2% total rate might cost ~$10,000 annually before exemptions.
Property Tax Estimators with Exemptions Included
Though property listings do have a property tax estimate, those aren’t always accurate. Estimated tax is a field that will accept any number. So, garbage in, garbage out. Actual tax, what the current owner is paying, is also not reliable as it factors in the current owner’s exemptions and how long they’ve owned the property. The tax assessor can re-assess the property once it changes hands and assign a new value closer to market value. Therefore, you really can’t use the actual tax or estimated tax
The three Austin area counties offer property tax estimators with the exemptions included. You can put in the assessed value of the property (use somewhere near list price if you’re trying to figure out a home you might buy as a high estimate), the taxing entities and the exemptions you qualify for. Their calculators will give you a ballpark estimate. Here are the links.
🤔 How Seniors Benefit
Bottom line is there is relief from property tax burdens for Texas residents over 65 that you would qualify for just based on your age. Here are some additional helpful tips to keep your taxes low.
- Apply early: File exemptions by April 30 to minimize that year’s taxes.
- Age 65 protections: Value freeze and extra exemption can drastically reduce long-term tax bills.
- Upcoming reforms: If SB 4/SB 23 pass in Nov’25, seniors could see exemptions up to $200K—potentially eliminating school taxes on many homes
- Stay informed: Each county (Travis, Hays, Williamson) manages its own exemptions—check their appraisal district websites annually.
Bonus Tip to Keep Taxes Low – Protest Your Home’s Assessed Value Yearly
It is imperative you protest your home’s assessed value yearly. If you don’t want to do this yourself, there are several companies you can hire for a reasonable fee to fight the assessment. This not only saves you the year of the reduction, but for years to come as it lowers the ceiling for how much the assessor’s office can raise your value the following year. Do this several years in a row, and it’s a substantial savings. I would highly recommend a yearly protest not only to seniors, but anyone who owns property in Texas.
Bonus Tip #2 See If you Qualify for Other Exemptions
We detailed other exemptions in our post, Everything You Need to Know: Austin Home Property Taxes. Head over there to see if you might take advantage of any other exemptions to further reduce your tax liability.
Final Takeaway
- Austin-area property taxes can total 1.4%–2.6% of home value. Values are property specific and you might find different tax rates in the same neighborhood. It is important to check the tax rate for each property you’re considering to verify.
- Homestead and senior/disability exemptions, along with appraisal caps, significantly reduce taxable value.
- Proposed legislative changes may further benefit retirees, pending voter approval in November 2025.
Ready to Find Your Retirement Home in Austin?
If you’re a senior looking to retire in Austin, navigating property taxes and exemptions can feel overwhelming—but you don’t have to do it alone. Our team of experienced buyer’s agents specializes in helping retirees find their dream homes while keeping tax liabilities as low as possible. From understanding exemptions to finding the perfect property, we’re here to guide you every step of the way. Contact us today to start your journey toward an stress-free retirement in Austin! Check out our Austin Home Buyers section for more about our team and how we work. Then call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to schedule a no obligation consultation.
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