Dallas Raises Property Tax Exemptions for Seniors and Disabled Residents to $175K

Key Takeaways: 

• Expanded Relief: Dallas increased its homestead exemption for seniors and disabled residents from $134,000 to $175,000, significantly reducing taxable property value.
• Eligibility Requirements: To qualify, homeowners must meet age or disability criteria and occupy the property as their primary residence with matching ID and deed information.
• Tax-Saving Opportunities: This exemption can be stacked with other exemptions, like the general homestead benefit, for even greater long-term tax savings.

At Icon Property Tax, we’ve made it our business to be the go-to resource for Texas homeowners serious about lowering their property tax bills. With a proven track record of successful protests, deep expertise in Texas tax law, and a data-driven approach that delivers real results, we don’t just talk about savings—we deliver them.

Recently, the City of Dallas made a major shift in favor of homeowners by raising the Over-65 and Disabled Homestead Exemption to $175,000. That’s not just a headline—it’s a game-changer for thousands of residents facing rising home values and increasing financial pressure. But here’s the thing: this kind of tax relief isn’t automatic. Homeowners need to understand the rules, file correctly, and stay ahead of deadlines to truly take advantage of it. That’s where most people get stuck—and where we shine.

In this piece, we’ll break down what the new exemption means, who qualifies, how to apply, and smart ways to make the most of this update in Dallas County.

How The New $175,000 Dallas Exemption Works For Seniors And Disabled Homeowners

Dallas has recently enacted a major update to its property tax policy: the Over-65 and Disabled Homestead Exemption has been raised from $134,000 to $175,000. For qualifying homeowners, this means a larger portion of their home’s value is shielded from city property taxes, potentially leading to substantial yearly savings.

This updated exemption applies exclusively to the City of Dallas portion of a homeowner’s property tax bill. If your home is appraised at $300,000, only $125,000 of that value would now be subject to city taxation—thanks to the $175,000 exemption. The result is a noticeable drop in annual tax costs, especially critical for those on fixed incomes.

For seniors and disabled homeowners who have built their lives in Dallas neighborhoods, this change offers financial breathing room. Whether you’re planning to age in place or simply looking for ways to reduce living expenses, the enhanced exemption offers a meaningful reduction in your annual tax burden.

Navigating exemptions and property tax law doesn’t have to be overwhelming. At Icon, we make it simple, strategic, and stress-free. Let us take the reins while you keep more of what’s yours.

Who Qualifies For The $175,000 Over-65 Or Disabled Homestead Exemption In Dallas?

Not every homeowner will automatically benefit from the new $175,000 exemption. To qualify, you must meet specific age, residency, and documentation criteria set by Dallas County.

Age Or Disability Requirement

You’re eligible the day you turn 65, even if your birthday falls mid-year. Alternatively, if you have a qualifying disability recognized by the Social Security Administration, you also meet the requirement.

Primary Residence Only

The exemption applies only to your primary residence. Investment properties, second homes, and vacation houses are not eligible for this specific benefit.

Matching Address Verification

You must present a Texas driver’s license or state-issued ID that shows the same address as the property for which you’re filing the exemption. This confirms that the property is your homestead.

Proof Of Ownership

You must be listed on the property deed or hold a legal life estate. In situations with shared ownership, only the portion owned by the eligible individual qualifies for the exemption.

No Income Restrictions

Importantly, this exemption is not income-based. Regardless of your financial status, if you meet the age or disability requirement and the home is your main residence, you can apply.

Why The $175,000 Exemption Matters For Dallas Homeowners

For many Dallas residents—especially retirees and individuals living with disabilities—rising property values have turned homeownership into a growing financial burden. The increased $175,000 homestead exemption offers immediate relief, shielding more of your home’s value from taxation and helping you retain more of your income each year.

Real-World Impact On Your Tax Bill

Consider this example: If your home is valued at $400,000, only $225,000 of that would be subject to city property taxes after applying the new exemption. That adjustment could result in hundreds to thousands of dollars in savings annually, depending on the city’s tax rate and any additional exemptions you may qualify for.

Full Relief For Some Homeowners

If your home is valued at $218,750 or less, and you also qualify for the standard 20% general homestead exemption, you may owe no city property taxes at all. This is especially beneficial for long-time homeowners who may have already paid off their mortgage but still face recurring tax expenses.

Stability For Fixed-Income Residents

This exemption provides long-term protection for those on fixed incomes. With more of the home’s value exempt from taxation, seniors and disabled homeowners can better budget for essentials like healthcare, utilities, and home maintenance—even in the face of rising local property values or tax rate increases.

Steps To Apply For The Over-65 Property Tax Exemption

Applying for the $175,000 Over-65 or Disabled Homestead Exemption in Dallas County is a straightforward process, but it’s important to complete each step correctly to ensure your exemption is approved and reflected in your annual tax bill.

1. Confirm Your Eligibility

You must be 65 years or older (as of the current tax year) or meet the definition of a disability recognized by the Social Security Administration. The property must also be your primary residence.

2. Secure The Correct Application Form

You’ll need Form 50-114, the Application for Residential Homestead Exemption. This can be downloaded directly from the Dallas Central Appraisal District (DCAD) website or obtained in person from their office.

3. Collect Required Documents

Gather key information like your property’s legal description, appraisal account number, and a Texas driver’s license or state-issued ID that shows the same address as the home you’re claiming the exemption for.

4. Fill Out And Submit Your Application

Carefully complete the Over-65 or Disabled Exemption sections of the form. Once done, you can submit it online, by mail, or in person. Double-check your entries and include all supporting documents to avoid delays or rejections.

5. Wait For Written Confirmation

After your submission is reviewed, DCAD will send a written confirmation of your exemption status. If further documentation is needed, they’ll follow up directly.

6. Watch Your Tax Statement

Once approved, the $175,000 exemption will appear on your annual property tax statement, lowering your taxable value and ultimately reducing what you owe.

Smart Ways To Maximize Your Property Tax Savings In Dallas County

While the $175,000 exemption is a major win for eligible homeowners, there are additional steps you can take to stretch your savings even further. Strategic planning and annual reviews can help you hold on to more of your income while ensuring your property is fairly assessed.

Confirm All Applicable Exemptions

Start by making sure your general homestead exemption is active. This basic benefit is available to most homeowners and can be combined with the Over-65 or Disabled exemption. Together, they provide a significant reduction in your taxable home value.

The law changed. Now it’s your turn to benefit. Icon is here to make sure you don’t leave a single dollar on the table.

Explore Additional Exemptions

Certain groups—like veterans, surviving spouses, or those with specialized needs—may qualify for additional exemptions. These can sometimes be layered on top of existing benefits, offering even deeper reductions on your property tax bill.

Review Your Annual Property Appraisal

Each year, compare your home’s assessed value to similar properties in your neighborhood. Look at factors such as square footage, age, renovations, and features like pools or garages. If your home is assessed higher than comparable homes, you may have grounds to file a protest.

Keep Your Records Organized

Maintain documentation of repairs, storm damage, or unfinished renovations—anything that could impact your property’s market value. These records can be useful if you need to dispute an overvaluation or request a reassessment.

Track Deadlines And Updates

Stay informed about filing deadlines for exemptions and appraisal protests. Missing a key date can mean losing out on an entire year’s worth of savings. Set reminders and check in with your local appraisal district regularly.

Final Thoughts

The recent increase in Dallas County’s Over-65 and Disabled Homestead Exemption to $175,000 marks a significant step forward for senior citizens and disabled homeowners seeking property tax relief. With rising housing values across the city, this exemption offers a practical way to protect your income, lower your tax bill, and bring long-term stability to your finances.

What makes this update particularly powerful is its simplicity: if you qualify by age or disability and live in your home as your primary residence, you can apply and potentially save thousands over time. Better yet, when combined with other available exemptions and smart appraisal review strategies, your savings can grow even further.

The key is staying informed, organized, and proactive. By understanding what you’re eligible for and filing the right paperwork on time, you’re not just cutting costs—you’re securing peace of mind and protecting the value of your home.

Frequently Asked Questions About The Dallas County Homestead Exemption

Can the $175,000 exemption reduce school district taxes in Dallas County?

No. The $175,000 Over-65 or Disabled Homestead Exemption applies only to the City of Dallas portion of your property tax bill. It does not affect taxes levied by school districts, counties, or other local taxing entities unless they adopt similar exemptions.

Is there a deadline to apply for the Dallas County homestead exemption?

Yes. While you can apply at any time during the year, to receive full benefit for a given tax year, the exemption application should be submitted by April 30. Late applications may not be considered for that year’s tax reduction.

Can I transfer this exemption if I move to a new home in Dallas County?

Yes, the exemption can be transferred to a new primary residence within Dallas County. However, you’ll need to reapply for the exemption and update your address and documentation with the new property information.

Does the $175,000 exemption affect my mortgage escrow payments?

Yes. If your mortgage includes an escrow account for property taxes, the reduced taxable value can lower your monthly escrow contributions. Your mortgage servicer will typically adjust the payment after receiving the new tax bill.

How often do I need to reapply for the Over-65 or Disabled Exemption?

Once your application is approved, it generally remains in effect automatically, as long as you continue to live in the home and meet the eligibility requirements. You only need to reapply if there’s a change in ownership or eligibility status.

Does the exemption apply to jointly-owned homes?

Yes, but only the portion owned by the eligible individual will receive the exemption. In jointly-owned properties, the tax savings are proportioned based on the ownership share of the person who qualifies.

Can I receive this exemption if I live in a manufactured or mobile home?

Yes, provided that the home is affixed to the land, is your primary residence, and the ownership and address requirements are met. You may also need to prove you own both the structure and the land.

Is proof of disability required every year?

No. You only need to provide proof of disability once, unless requested again by the appraisal district due to a change or audit. Accepted proof includes documentation from the Social Security Administration or qualifying agencies.

Can my property still increase in taxable value despite the exemption?

Yes. While the exemption reduces the portion of your home’s value subject to taxation, your overall appraised value may still increase annually. This makes reviewing your appraisal notice each year crucial.

Is it possible to appeal a denied exemption application?

Yes. If your exemption is denied, you have the right to appeal the decision with the Dallas Central Appraisal District. The appeals process allows you to submit additional documentation or request a hearing.