City of Dallas Increases Over-65 or Disabled Property Tax Exemption to $175,000

Today, the Dallas City Council approved additional property tax relief for senior and disabled homeowners by increasing the city’s property tax exemption for residents who are 65 or older or disabled. The exemption amount will increase from $153,400 to $175,000, effective for the 2025 tax year.

“We are proud to support our older and disabled residents with this increase”, said Dallas City Manager Kimberly Bizor Tolbert. “This exemption helps Dallas homeowners stay in their homes as they age.”

This exemption applies to homeowner’s primary residence (homestead) and reduces the taxable value of the home by $175,000 for the City of Dallas portion of their tax bill. As a result of the 20% homestead exemption and a $175,000 65 or older or disabled exemption, eligible homeowners pay no City of Dallas property taxes if the market value of their home is $218,750 or less.

Eligibility Requirements

Every eligible homeowner should apply for this benefit. Under Texas law, homeowners may qualify for the Over-65 or Disabled Person Exemption if they meet the following qualifications. You do not need to reapply if you already have this exemption.

Must own and occupy the home as a principal residence (homestead)
Must be age 65 or older or certified as disabled under Social Security guidelines
Only one of the exemptions (Over-65 or Disabled) may be claimed per homeowner per residence
If a resident is a surviving spouse of someone who received the Over-65 exemption, they can continue the exemption if they were 55 years at the time of their spouse’s death

The City of Dallas spans several counties, to receive the exemption residents must apply through the appraisal district for the county in which their property is located.