Austin raises senior, disabled homeowner property tax exemption by $12K

Continuing a trend from recent years, City Council voted unanimously in May to increase Austin's senior and disabled homestead exemption by more than 6%. The change will effectively maintain tax relief for those homeowners from last year.

“We have certain tools at our disposal to help people age in place, to be able to live here affordably, and this is a very powerful one," council member Ryan Alter said.

More information about exemption eligibility and applications is available through appraisal districts for Travis, Williamson and Hays counties.

By the numbers

Austin's senior and disabled property tax exemption now stands at $204,000 for the 2026 tax year, rising from last year's $192,000 assessed value reduction. The senior and disabled exemption is applied on top of the city's 20% general homestead exemption for all primary residences.

Increasing the senior and disabled exemption affects Austin's overall tax rate, and taxes paid by all other property owners. The new $12,000 increase is projected to reduce citywide taxable property value by $552 million, and will cost the typical non-senior homeowner about $6, based on a $388,000 median taxable home value.

Austin's overall median property tax bill for senior or disabled homeowners is projected to be about $1,154 this year, a slight decrease from last year's $1,156. The median non-senior homeowner tax bill would rise from an estimated $2,074 to $2,234, including the new exemption and projected city tax rate hike.

The context

Austin's practice of increasing the senior and disabled exemption continues as Texas leaders also push to limit local property taxes.

After November's statewide proposition election, both the base homestead exemption and senior and disabled exemptions rose to their current levels. And late last year, Lt. Gov. Dan Patrick proposed another $40,000 increase to base homestead exemptions as well as lowering the eligibility age for the greater exemption from 65 to 55. Legislation to meet those aims could be considered in 2027.