The property tax exemption in Austin has been further increased for homeowners who are seniors or have disabilities, ensuring that they won’t see an increase in their property tax bill next year. The Austin City Council recently approved an ordinance that raises the property tax exemption for these homeowners, aiming to reduce the taxable amount of their properties
The new ordinance increases the exemption amount to $154,000 from the current $124,000, which was previously $113,000. This exemption applies to the appraised value of a home for those over 65 or with a disability. These homeowners must first apply for the city’s 20% general homestead exemption before deducting $154,000 from their property value. The updated exemption will be reflected in this year’s tax bills, which are typically issued at the end of the year.
In 2024, the median home value for senior or disabled homeowners is projected to be $485,573, rising to an estimated $520,835 next year, according to the city’s finance office. Without the new exemption, homeowners with a median-valued home would have faced an additional $126.05 in annual property taxes. However, with the updated exemption, the tax bill is expected to decrease by $1. The increased exemption may lead to other homeowners paying approximately $10 more annually in property taxes.
Since the exemption was approved before the official voter-approval tax rate for fiscal 2025 was set, it won’t affect the city’s total projected property tax revenue.
Austin has been steadily increasing the homestead exemption for seniors and those with disabilities since 2017, nearly doubling the exemption amount over the past seven years. While state law limits other exemptions, there is no cap on this exemption, allowing seniors and people with disabilities to save more on their taxes.
The ordinance was introduced by Austin’s mayor, who highlighted its role in the city’s broader efforts to address affordability. He noted that by raising the exemption to $154,000, the city aims to keep the annual tax bill flat for these homeowners, many of whom live on fixed incomes.
An amendment to the ordinance, proposed by a council member, ensures that the senior and disabled tax exemption is set at a level that keeps those households financially protected, considering the previous year’s changes in median home prices and property tax rates.