Austin is dialing up its property tax relief for older and disabled homeowners, signing off on a bigger break that aims to keep their city tax bills from creeping up even as rates are expected to rise.
In late May, City Council voted to increase the senior and disabled homeowner homestead exemption by $12,000, bringing the total city exemption to $204,000 for the 2026 tax year. City staff said the bump is calibrated so the typical senior or disabled homeowner's city tax bill stays roughly flat despite projected increases in the voter approval rate. Council adopted the move as part of broader budget work that must be finalized before that rate is calculated later this summer.
City numbers and impact
According to a City of Austin memo, the $12,000 boost is expected to shave about $552 million off the city's taxable property base. In exchange, the projected voter approval rate ticks up by roughly $0.001492 per $100 of taxable value.
On a typical tax bill, that tradeoff lands gently for seniors and disabled homeowners. The memo projects that with the higher exemption, the median annual city tax bill for senior or disabled homesteads will sit at about $1,154 (a decrease of roughly $2) instead of climbing by about $64 without the change.
For everyone else, the shift is small but not zero. Staff calculations show the typical non-senior homeowner would pay roughly $5.79 more each year because of the slightly higher projected rate.
What officials said
As reported by Community Impact, Council Member Ryan Alter called the exemption "a very powerful one" for helping people age in place. Community Impact also highlights the broader implications: with the adopted exemption and projected tax rate, the median non-senior homeowner tax bill is forecast to rise from roughly $2,074 to about $2,234.
City leaders framed the move as a targeted shield for older and disabled homeowners at a time when rising appraisals and budget pressures are putting the squeeze on everyone. The policy keeps those households steady and shifts a sliver of the cost to other homeowners across the city.
Statewide context
The local change stacks on top of statewide homestead reforms. The state now requires a $140,000 school district homestead exemption and an additional $60,000 exemption for homeowners 65 or older or with qualifying disabilities, effectively sheltering up to $200,000 of a senior or disabled homeowner's value from school taxes, according to the Texas Comptroller.
For Austin residents, the city's 20% general homestead exemption is applied first, before the senior and disabled exemption kicks in. City staff say the new $12,000 increase was sized specifically to preserve the same level of city relief for those homeowners after the statewide changes.
How to claim the break
Homeowners who qualify have to file with their local appraisal district. The Travis Central Appraisal District accepts applications online, by mail, or in person and lists the documentation required for age and disability-based exemptions.
If you are unsure whether you qualify or what forms you need, TCAD's homestead page and exemption helpline are the quickest places to start.
The bottom line: the council's tweak preserves targeted tax relief for older and disabled Austinites just as appraisals keep climbing, while spreading a modest share of the cost across other homeowners. Anyone wondering how the change will hit their bill can dig into the city memo and TCAD materials linked above or contact their appraisal district directly.
