2026 Tax Guide for Seniors in Texas

Quick Reference: Where to Start

What Has Changed

The 2025 federal return extension deadline passed on October 15, 2026. IRS Free File is closed and the IRS says to check back in January 2027. Texas’s 2026 mandatory school homestead exemption amounts remain $140,000 for a qualifying homestead and an additional $60,000 for a qualifying homeowner age 65 or older or disabled. Check the current filing route rather than relying on an expired 2026 tax-software offer.

Texas Income Tax and Retirement Income

The Texas Constitution bars the Legislature from imposing a tax on the net incomes of individuals. In practical terms, Texas does not impose an individual income tax on Social Security benefits, pensions, IRA or 401(k) withdrawals, wages, interest, dividends, or capital gains.

This does not mean the income is automatically free from federal tax. Social Security can be federally taxable depending on other income. Pension and retirement-account withdrawals may also be federally taxable. Texas simply does not add a Texas individual income tax on top.

Federal law also added an enhanced deduction for many taxpayers age 65 or older for tax years 2025 through 2028. The IRS senior update says the deduction can be up to $6,000 per eligible person, or $12,000 for a married couple when both spouses qualify. The deduction begins to phase out when modified adjusted gross income exceeds $75,000 for a single filer or $150,000 for a married couple filing jointly. This is a federal deduction, not a Texas benefit.

The Texas Constitution also bars a state death tax. Texas does not currently impose a state estate or inheritance tax. Federal estate rules are separate, so large or complex estates may need professional advice.

Property-Tax Relief for Texans Age 65 or Older

Texas has no state property tax. Local school districts, counties, cities, and special districts levy property taxes. The Texas Comptroller provides statewide rules and forms, but your local appraisal district decides exemptions and appraised value for your property. The property tax overview explains the system.

For a residence homestead, school districts must provide a $140,000 general homestead exemption. A qualifying owner age 65 or older or disabled gets an additional $60,000 school-district exemption. The Comptroller’s current homestead exemption rules say an age-65 applicant must be at least 65, own an interest in the property, and use the home as the principal residence.

What that means: If both mandatory school exemptions apply, $200,000 of the home’s appraised value is removed before the school-district tax rate is applied. For example, if the appraised value were $300,000 and no other school exemption applied, those two exemptions would leave $100,000 of school-district taxable value. This example does not calculate the final bill because tax rates and other local exemptions vary.

Local taxing units can also offer optional homestead exemptions. Those choices differ by county, city, school district, or special district. Use the Texas property-tax guide for a deeper explanation, and the property tax relief finder to organize the questions you should ask locally.

How to apply for the homestead exemptions

Apply through the appraisal district for the county where the home is located. The statewide application is Form 50-114, Application for Residence Homestead Exemption. The Comptroller keeps the current version on its property tax forms page.

Most homestead exemption applications are due by April 30. The Comptroller’s exemption deadline guidance also explains late filing. Current Form 50-114 says a late residence homestead application, including for age 65 or older, may generally be filed up to two years after the regular filing deadline. If you missed April 30, call the appraisal district before assuming the exemption is lost. If you already have a general homestead exemption and the district has accurate birthdate information, it may apply the age-65 exemption automatically; check your account either way.

A surviving spouse who was at least 55 when the qualifying owner died may be able to keep the school tax ceiling and certain local age-65 exemptions if the legal conditions are met. This does not automatically mean the surviving spouse receives the separate $60,000 school age-65 exemption. Ask the appraisal district to review each benefit on the account.

Special rules for disabled veterans

Texas also has separate disabled-veteran property-tax exemptions. A veteran who receives 100% disability compensation because of a 100% disability rating or individual unemployability from the U.S. Department of Veterans Affairs may qualify for a total residence-homestead exemption under Texas rules. Check the Comptroller’s disabled veteran rules and the GFS Texas veteran benefits guide before relying on a general senior exemption alone.

School Tax Ceiling, Installments, and Deferral

Once a homeowner qualifies for the age-65 or disabled homestead exemption, the school district tax ceiling can limit the school-district tax on that home. The Comptroller’s 2026 Property Tax Basics explains that the ceiling is generally based on the school tax in the year the owner qualifies. It is a maximum, not a promise that the bill will never change. If the calculated school tax falls below the ceiling, the lower amount can apply. Certain later improvements can increase the ceiling.

If the school tax on your home seems wrong, the Texas age-65 homestead guide explains how to check the exemptions, school tax ceiling, and transfer rules after a move.

If a qualifying homeowner moves to another Texas homestead, part of the school tax ceiling protection may be transferred as a percentage. Ask the old appraisal district for the needed certificate and the new appraisal district how to apply the transfer.

If cash flow is the main problem, ask the tax office about the four-installment option before considering a deferral. The Comptroller’s payment options page explains that eligible age-65 or disabled homestead taxpayers can pay current taxes in four equal installments without penalty and interest when the notice and payment deadlines are met.

A deferral is more serious. A qualifying age-65 or disabled homeowner can file an affidavit to defer collection of property taxes on the residence homestead. The tax is not forgiven. A lien remains, and the deferred amount generally accrues interest at 5% per year. Collection can resume after the deferral ends. Before using this option, read Form 50-126 and ask how the debt could affect the estate, heirs, or a future home sale.

If You Think the Property Value Is Too High

An exemption reduces taxable value, but it does not replace your right to challenge the appraisal. If you believe the appraisal district set the market value too high or made another protestable error, review the Comptroller’s property protest rules.

The usual deadline is May 15 or 30 days after the appraisal district mails the notice of appraised value, whichever is later. Special deadlines can apply. Follow the deadline printed on your notice and confirm it with the appraisal district.

The Appraisal Review Board (ARB) hears many local property-tax protests. Bring useful evidence such as photographs, repair estimates, comparable sales, closing documents, or records showing a factual error. Keep copies of everything you submit.

Texas Sales Tax and Everyday Purchases

Texas has a 6.25% state sales and use tax. Local taxing jurisdictions can add up to 2% combined, so the maximum combined rate is 8.25%. See the Comptroller’s Texas sales tax rates.

Many basic groceries are not subject to Texas sales tax. The Comptroller’s grocery tax rules list common staples such as bread, milk, eggs, fruits, and vegetables as nontaxable. Prepared food, hot food, and many nonfood items can be taxable, so the rule depends on what you buy and how it is sold.

Many over-the-counter medicines with an FDA Drug Facts panel are also exempt from Texas sales tax. The Comptroller’s healthcare tax exemptions explain which medicines and medical items qualify.

Federal Filing and Free Tax Help in Texas

Texas has no individual income tax, but many older Texans still need a federal return. For 2025 returns, the usual October 15, 2026 extension deadline has passed; extensions never extended the April payment deadline. The ordinary deadline for tax year 2026 returns is April 15, 2027, subject to applicable exceptions or relief.

The 2026 Free File notice described guided filing for 2025 adjusted gross income of $89,000 or less, but that filing window has ended. The IRS currently says its Free File service will return in January 2027. If you need to file an overdue 2025 return now, use current IRS filing instructions or ask a tax professional which options remain; do not assume expired Free File software is available.

Tax Counseling for the Elderly (TCE) focuses on taxpayers age 60 or older. Volunteer Income Tax Assistance (VITA) also serves qualifying taxpayers. Most in-person sites are seasonal, so check the IRS free tax help page or call 1-800-906-9887 before traveling.

AARP Foundation Tax-Aide status lists seasonal tax-preparation services; the 2026 filing season has ended. Check for the next season’s locations and dates before traveling. If an unresolved IRS problem is causing serious financial hardship, contact the Taxpayer Advocate Service at 1-877-777-4778.

Documents and Information to Gather

• Federal return: photo ID, Social Security numbers, prior return, SSA-1099, 1099-R, interest and dividend forms, wage forms, and other tax documents.
• Homestead exemption: property address or account number, ownership information, identification, and any documents the appraisal district requests.
• Property protest: appraisal notice, photos, repair estimates, comparable sales, closing records, and proof of factual errors.
• Payment problem: tax bill, account number, exemption status, payment history, and any collection notice.

Bring records for the task you are handling. An appraisal district does not need every federal tax form, and a tax preparer does not need your full protest file.

How to Start Without Wasting Time

1. Read the newest notice first. Identify the tax year, account number, amount, and deadline.
2. Call the right local office. Exemptions, appraised value, and protests go to the appraisal district. Bills and collections usually go to the tax office.
3. Ask the office to read your account. Do not rely only on a general rule. Ask which exemptions are already on the property and when they took effect.
4. Write down names and dates. Keep the name of the person you spoke with, the date, and what you were told to file.
5. Keep proof of filing. Save confirmation pages, certified-mail receipts, emails, forms, and copies of evidence.

Phone Scripts You Can Use

Backup Options When Taxes Are Part of a Bigger Budget Problem

If taxes are only one part of the problem, use the Texas senior benefits guide and Texas benefits portals to screen for other help. A local Texas aging agency can connect older adults to benefits counseling and local services.

If housing costs are becoming unsafe or unaffordable, see Texas housing help. Lowering other monthly costs may make a property-tax payment plan easier to manage.

Official and Local Resources

• Use the Texas Comptroller county tax directory to find the appraisal district and tax office for your county.
• Use the IRS filing page for current federal filing, payment, notice, and account routes.
• For broader community help, contact Texas 2-1-1. For qualifying senior legal issues, use the Texas senior hotline.