Dallas Approves Property Tax Relief for Seniors, Disabled Homeowners

Seniors and those living with disabilities will be getting some property tax relief following a vote by the Dallas City Council on Wednesday.

Starting in tax year 2025, council members approved increasing the existing property tax exemption from $153,400 to $175,000 for homeowners in the city limits who are either disabled or 65 years or older. It’s the fifth consecutive year officials voted to increase the exemption for seniors and the disabled.

The exemption reduces the taxable value of a homeowner’s primary residence by $175,000 for the city portion of their property tax bill. Combined with the 20% general homestead exemption, the reduction means seniors and disabled homeowners whose homes are valued at $218,750 or less will not owe city property taxes.

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According to Zillow, the average home in Dallas is valued at $318,689. Swelling valuations due to high demand amid the state’s housing shortage have put some pressure on low-income homeowners who have to come up with the money to pay their local property taxes (county, city, school district, special districts, etc) every year.

“This increase reflects our commitment to supporting aging and disabled residents. It’s one way we can help people remain in their homes as they grow older,” said City Manager Kimberly Tolbert in a news release.

Increased valuations and their corresponding taxes are a significant driver of gentrification in Dallas, with many neighborhoods in western and southern parts of the city designated as vulnerable to displacement, according to the housing nonprofit Builders of Hope.

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Homeowners may be eligible for the new exemption if they meet the following criteria:

• They must live in the home as their principal residence.
• They must either be at least 65 years old or meet the Social Security Administration’s definition of disability.
• Only one of the exemptions (senior or disabled) can be applied per homeowner per residence.
• Surviving spouses of individuals who qualified for the senior exemption can continue to receive it if they were at least 55 years old at the time of their spouse’s passing.

Homeowners who already receive this exemption do not need to reapply. Since Dallas spans multiple counties, applications must be submitted through the relevant appraisal district, which the news release provided links to:

• Dallas County: dallascad.org
• Collin County: collincad.org
• Denton County: dentoncad.com

Broader relief will also be on its way next year, courtesy of the Texas Legislature. Two new property tax relief bills are expected to be signed into law by Gov. Greg Abbott soon. However, voters must still approve the proposals in the election this November.

Senate Bill 4, paired with Senate Joint Resolution 2, would raise the school district homestead exemption from $100,000 to $140,000. The change would apply to roughly 5.7 million homes across Texas and could save each homeowner an average of $484 per year in property taxes.

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Another measure, Senate Bill 23 — linked with Senate Joint Resolution 85 — would increase the additional homestead exemption for seniors and people with disabilities from $10,000 to $60,000, delivering an estimated $450 in annual savings to eligible homeowners.

Lt. Gov. Dan Patrick highlighted the broader impact, noting that the average homeowner received a $1,266.30 tax cut in 2023. With the new proposals, the total savings could rise to $1,762.87. “Lawmakers from both parties recognize that combining a higher homestead exemption with additional compression offers the greatest benefit to homeowners,” he said.