Nearly 1.45 million Texas homeowners age 65 or older or with qualifying disabilities pay no school district property taxes, according to figures state Sen. Paul Bettencourt (R-Houston). The findings underscore the effect of existing exemptions while raising a separate question: Should Texas increase the general school district homestead exemption to $200,000 for every eligible primary residence?
Texas currently requires school districts to exempt $140,000 of an eligible primary residence’s value from school district property taxes. Qualifying homeowners age 65 or older or with disabilities receive another $60,000, for a combined $200,000 exemption, the Texas comptroller explains. The $200,000 amount does not currently apply to all homeowners.
Bettencourt’s office said at least 60% of qualifying senior and disabled homeowners pay no school district taxes in 227 of 254 counties. That share reaches at least 90% in 93 counties. Tarrant County stands at 61%, compared with 73% in Bexar County and 87% in El Paso County.
An earlier statewide analysis from Bettencourt’s office estimated that 39.23% of Texas homesteads owed no school district property taxes and average school district tax bills for general homesteads fell 13.57% in 2025. These figures come from the senator’s study, not an independent DX calculation.
What A $200,000 General Exemption Would Change
Raising the standard school district exemption from $140,000 to $200,000 would exempt an additional $60,000 of taxable value for eligible primary residences. That is a proposal for broader school district tax relief, not a proposal to eliminate city, county or other property taxes. Other local taxing entities generally calculate their taxes under separate rates and exemptions.
At Dallas ISD’s 2026 tax rate of $0.985735 per $100 of taxable value, the additional $60,000 exemption would reduce a qualifying homeowner’s annual school district tax bill by about $591, or approximately $49 monthly, if the home has sufficient taxable value to use the full increase. The district publishes both the tax rate and its optional 10% homestead exemption; actual tax bills depend on individual circumstances.
Property taxes remain a recurring cost after a homeowner pays off a mortgage.
Households with escrow accounts may see monthly payment changes after servicers recalculate tax obligations, while owners without mortgages must pay their taxes directly. Renters cannot claim a homestead exemption on a landlord’s property, though landlords’ tax expenses can influence rents.
As The Dallas Express previously examined, the question is whether Texans should receive the full $200,000 school district exemption regardless of age.
A subsequent DX article explored the interaction between Dallas housing costs, property taxes and rental competition.
Lawmakers Must Address School Funding
The proposed $200,000 general exemption remains a policy objective, not an enacted statewide benefit.
Lt. Gov. Dan Patrick has outlined a different plan that would raise the general school district exemption to $180,000 and the combined exemption to $240,000 for eligible homeowners age 55 or older. His proposal would also lower the qualifying age for school district tax ceilings from 65 to 55.
Neither proposal has become law.
Larger exemptions would lower taxable values for eligible homeowners but also require state leaders to account for school district revenue. Bettencourt says Texas financed recent increases with state general revenue surpluses rather than a new direct tax shift. That explanation does not resolve how legislators would fund additional relief over time.
The upcoming 2027 legislative session offers lawmakers another opportunity to debate relief.
For Texas residents, the practical test is whether higher school district exemptions produce durable savings while lawmakers provide a transparent plan to maintain public education funding and address the property taxes that remain.
