With insurance, groceries, gas, and health care all getting more expensive, many older Texans are seeing one notable expense disappear: school property taxes.
The policy has fueled a growing debate over whether the state's approach is fair — or sustainable.
Here's what to know
According to The Texas Tribune, about 60% of Texas homeowners 65 and older are no longer billed for school property taxes, which often make up the largest share of a property tax bill.
One homeowner's bill shows how meaningful the change can be for residents on fixed incomes. Jane Lindsley, a 72-year-old retired bookkeeper in Hays County, told The Texas Tribune that her property tax bill dropped by more than 40% after school taxes were removed.
"I was ecstatic," Lindsley said. "I'm like, 'This is the only thing in my life that's going down.' I can actually afford to pay."
That change traces back to legislation approved last year, when lawmakers raised the homestead exemption on school district taxes to $140,000. Combined with the senior exemption, qualifying homeowners can exclude $200,000 from their home's taxable value.
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Now, roughly 2.4 million Texans are exempt from paying school property taxes. "When they finally pay zero, and they realize it's not a mistake, it's a great day for them," said Sen. Paul Bettencourt, a Republican who spearheaded many of the tax cuts, per the Tribune.
More background
The Gerontology Institute's Elder Index estimates the income needed to cover basic expenses, and its figures show that more than 50% of seniors in Texas fall below that line, including 28% who are below the federal poverty line, according to the Tribune.
"Just because you own your home and it looks like you're wealthy on paper doesn't mean you have the cash flow to absorb increases in other costs," said Caitlin Covey, director of the Center for Social and Demographic Research on Aging at the Gerontology Institute.
However, lowering one group's taxes can leave others carrying more of the load, including younger property owners and renters. Everyone the Tribune spoke to supported tax breaks to help seniors, but they also believe more should be done to support younger taxpayers.
"We don't begrudge older generations for not wanting to be taxed out of their homes," Texas Young Republican Federation chairman Derrick Wilson said. "But it does seem foundationally unfair to grant tax relief to an older generation that's been voting for bonds and things that we still have to pay for."
That criticism spans ideological lines. Tax policy experts across the political spectrum reportedly described the age-based tax breaks as shifting wealth from younger Texans to older Texans, with lawmakers directing $51 billion to school property tax cuts in 2025.
At the same time, many seniors still face real financial strain.
What can be done?
Experts the Tribune interviewed said relief could be aimed more precisely than broad age-based tax cuts. One option is a "circuit breaker," which would limit property taxes once they rise above a certain share of a household's income.
They also pointed to housing supply. More accessory dwelling units, duplexes, or small apartment buildings could let older adults downsize without losing their support system.
Jessica Lemann, manager of advocacy for AARP Texas, said, "There are a lot of people out there that would be happy to downsize, but they still want to stay in their community."
Shannon Halbrook, a fiscal policy expert at Every Texan, added: "If you want to really focus on the folks who need tax relief the most, I think using income is a very appropriate way to do that."
Where can I learn more?
These stories examine tax policy, insurance costs, and other building-related policies affecting property owners.
• In Houston, soaring insurance costs are adding another heavy expense for Texas homeowners.
• In Hawaiʻi, lawmakers approved a lifeline for thousands facing punishing property insurance bills.
• In Berkeley, California, a first-in-the-nation tax on large buildings could fund climate work.
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