Your Taxes Are Frozen. Your Home’s Value Isn’t. Why Over-65 and Disabled Veteran Sellers Should Still Protest

Selling in Houston

If you are over 65, disabled, or a 100% disabled veteran in Texas, there is a good chance your property tax bill hasn’t surprised you in years. Your school taxes are frozen, or your homestead is fully exempt. So when the appraisal notice arrives each spring with a bigger number on it, it is easy to set it aside. The value goes up, the bill doesn’t, and protesting feels like effort with nothing to gain.

I’m Eddie Weir, a REALTOR® with REMAX Signature in Greater Houston, and I have this conversation with sellers more often than you might think. Short answer: your tax ceiling or exemption does not freeze your home’s appraised value. Buyers must qualify for their own benefits and confirm year-of-sale treatment with the tax office. If the appraisal district has been overvaluing your home for years and nobody pushed back, your buyer’s tax math is built on that inflated number. If you plan to sell in the next year or two, protesting the value is worth doing even though your own bill barely moves.

Here is how it works, why it matters when you sell, and what to do about it.

What does the over-65 tax freeze actually freeze?

It freezes a tax amount, not your home’s value. Under Texas Tax Code §11.26, once you qualify for the over-65 or disabled-person homestead exemption, your school district can’t charge you more school tax than it did in the first year you qualified. The appraisal district still appraises your home at market value every year and calculates the tax as it would for anyone else. The ceiling simply caps what you are billed.

A few details matter here:

The ceiling can go up. If you add improvements beyond ordinary repairs — an addition, a pool, a garage conversion — the ceiling is recalculated to include tax on the value those improvements add (§11.26(b)). An overstated improvement value can raise the ceiling calculation, making an accurate appraisal important.

The ceiling can go down. Since 2023, ceilings are reduced for school tax-rate compression and for increases in the state homestead exemptions (§11.26(a-10)). That is how existing ceiling holders shared in the 2025 increases to a $140,000 general school homestead exemption and an additional $60,000 exemption for owners who are over 65 or disabled, per the Texas Comptroller.

The ceiling covers school taxes automatically — not everything. Counties, cities and junior college districts may adopt their own ceilings (§11.261), but they aren’t required to. Taxing units outside those categories — municipal utility districts (MUDs), emergency services districts and other special districts — are not covered by the ceiling statutes at all. On those lines of your bill, your appraised value still sets what you pay.

What about the 100% disabled veteran exemption?

A veteran receiving 100% VA disability compensation for a service-connected disability, with either a 100% disability rating or individual unemployability, qualifies for a total residence-homestead exemption under Texas Tax Code §11.131. A surviving spouse who hasn’t remarried keeps it on the same home. The appraisal district still carries a market value for the property — the exemption removes that value from taxation, it doesn’t stop the appraisal. So the same problem applies: a number you have no reason to watch can drift well above what the home would actually sell for.

What happens to my tax freeze when I sell my house?

Your buyer does not inherit your personal tax benefits. The school tax ceiling expires on January 1 when the qualifying ownership or homestead conditions in §11.26(c) are no longer met. Year-of-sale calculations have separate rules, so ask the tax office and title company how your closing will be handled.

The seller’s 10% homestead appraisal cap generally expires the following January 1. A buyer’s own cap begins January 1 after the first year they qualify the home for their homestead exemption. For longer-term budgeting, buyers should check the district’s market value and their own exemptions instead of relying on the seller’s bill.

Two things do travel with you:

Your ceiling percentage. Under §11.26(g)–(h), you can take the benefit to your next Texas homestead. It isn’t the dollar amount that moves; it is the percentage of full school taxes you were paying. Fort Bend CAD puts it plainly: it is the percentage of school taxes paid that is transferable. You request a certificate from the appraisal district for the home you are leaving (Comptroller Form 50-311).

A disabled veteran surviving spouse’s benefit moves as the dollar amount of the last year’s exemption, not a full exemption, under §11.131(d).

Why does an overvalued appraisal hurt me if my taxes are frozen?

Because the day you decide to sell, that number stops being your problem only and becomes part of your buyer’s math.

Buyers and their lenders plan around a monthly payment, and property taxes are a large part of it in Harris, Fort Bend, Brazoria and Montgomery counties. Lenders collect the estimated annual tax through escrow, one-twelfth each month, and the Consumer Financial Protection Bureau tells borrowers to check that estimate against local tax authorities. HAR’s Harris County tax calculator estimates a bill from appraised value, school district, MUD rate and exemptions — and notes total rates in Cypress-area neighborhoods running roughly 2.4% to 3.6%.

Here is an illustration, using round, hypothetical numbers and a 2.3% total tax rate before any of the buyer’s own exemptions:

At the hypothetical 2.3% rate, the two values produce annual estimates of $10,005 and $7,015 before exemptions — a difference of $2,990, or about $249 a month. Actual taxes depend on the applicable year, taxing units, exemptions and appraisal. A successful protest does not lock in future years’ values.

That is a bounded point, and I want to keep it bounded: an overvalued appraisal doesn’t change what your home is worth, and every buyer’s situation is different. It does make your home look more expensive to own, and anything that makes a home look more expensive to own is worth fixing before you list.

Can I protest my appraisal if I have a tax ceiling or exemption?

Yes. Texas Tax Code §41.41 gives every property owner the right to protest the appraised value of their property. Having a ceiling or an exemption doesn’t take that right away.

There are also reasons to protest that help you now, not just your future buyer:

Taxing units without a ceiling. If your bill includes a MUD, an emergency services district or a county or city that hasn’t adopted a ceiling, a lower value lowers those lines directly. See Houston MUD districts by ZIP code for how large those rates can be.

Improvement values. If you are planning an addition or a major improvement, an overstated improvement value can raise the ceiling calculation, making an accurate appraisal important.

If the value falls far enough. The ceiling is a cap. If the tax calculated on a corrected value comes in below your ceiling, you pay the lower amount (§11.26(a)).

When is the deadline to protest my property taxes in Texas?

May 15, or 30 days after the appraisal district delivers your notice, whichever is later (§41.44). In Harris County, you can file online through HCAD’s iFile system and often receive a settlement offer without an appointment. If a settlement doesn’t resolve it, the next step is an informal review with an appraiser, then a hearing before the Appraisal Review Board.

If you have already missed this year’s window, two narrower options remain until taxes become delinquent, which is normally February 1:

A substantial-error correction (§25.25(d)). If the appraised value of your residence homestead is overstated by more than one-fourth, you can file a motion to correct it. There is a late-correction penalty of 10% of the taxes calculated on the corrected appraised value, and it isn’t available if you already had a hearing on the merits or signed a value agreement.

A notice that was never delivered (§41.411). If the appraisal district was required to send you a notice and didn’t, you can protest that failure, and if you prove it, the review board hears your value protest too.

For the step-by-step process in each county, see my playbooks for Harris County, Fort Bend County and Brazoria County, or the Houston property tax protest guide.

How do I know if my home is overvalued?

Look at the market value line on your appraisal notice, not the taxable value. Those three numbers mean different things:

Then compare that market value with what similar homes nearby have actually sold for recently — same size, age, condition and neighborhood. If the district’s number is clearly above the sales, you have the basis for a protest. Condition matters here more than most owners realize: a long-time owner’s home often has an original kitchen, an older roof or deferred maintenance the district’s mass-appraisal model doesn’t see. Photos and repair estimates are evidence.

What happens to property taxes in the year I sell?

Taxes for the year of sale are prorated between you and your buyer at closing. The Texas Real Estate Commission’s standard resale contract says the proration may take into account “any change in exemptions that will affect the current year’s taxes,” and that the parties adjust once the actual tax statements are available.

For the over-65 or disabled-person exemption, Texas generally treats an owner who qualified at any point in the year as qualifying for the whole year (§26.112), with an exception if you qualify a different homestead for that exemption the same year (§26.10(b)). A 100% disabled veteran exemption that ends mid-year is prorated by the number of days after it ended (§26.10(c)). How this applies to your closing is a question for your title company and the tax office, and it is worth asking early. I cover the rest of the seller’s side of closing in what to expect at closing as a Houston seller.

Frequently asked questions about tax freezes and selling

Does the over-65 tax freeze transfer to the buyer in Texas?

No. Buyers must qualify for their own benefits. The school tax ceiling expires on January 1 under §11.26(c) when the qualifying ownership or homestead conditions are no longer met; confirm year-of-sale treatment with the tax office. The seller can take the ceiling percentage to their next Texas homestead under Tax Code §11.26(g)–(h).

Should I protest my property taxes if I’m over 65?

If your value looks high and you plan to sell within a year or two, yes. Protesting can also lower lines on your bill that the ceiling doesn’t cover, such as MUD and emergency services district taxes, and it keeps overstated improvement values out of your ceiling.

Does a disabled veteran with a full exemption need to protest?

Not to lower their own bill — a 100% disabled veteran exemption removes the homestead’s value from taxation. But the district still carries a market value, and that value is where a buyer’s tax picture starts when the home sells.

Will my buyer’s property taxes be based on the sale price?

Not directly. Texas taxes are based on the appraisal district’s market value as of January 1, which the district determines each year. The sale price is one piece of evidence the district may consider for the next year’s value.

Can I move my tax ceiling to a new home?

Yes. The school tax ceiling can move to a new homestead anywhere in Texas as a percentage of full school taxes. A county, city or junior college ceiling moves only within that same county, city or district. Request a certificate from your current appraisal district.

What if I missed the May 15 protest deadline?

Until taxes become delinquent, usually February 1, you can seek a correction if your homestead’s value is overstated by more than one-fourth (with a penalty of 10% of the taxes calculated on the corrected appraised value), or protest if the district failed to deliver a required notice. Otherwise, protest next year.

Does protesting my value lower my home’s sale price?

No. Buyers pay for what a home is worth in the market, based on comparable sales. A lower, accurate appraisal district value doesn’t change that — it keeps the estimated tax cost of owning your home in line with reality.

Should I hire a property tax consultant?

Many homeowners file on their own, and HCAD’s iFile system is built for it. Others prefer a consultant, typically paid a share of the savings. For questions about your specific exemptions or ceiling, talk to your appraisal district or a qualified tax professional.

The bottom line

A frozen tax bill is one of the best benefits Texas gives long-time homeowners, and it is easy to stop watching your appraisal because of it. But the benefit belongs to you, not your house. Your buyer should budget using the appraisal district’s value and their own eligibility, and confirm year-of-sale treatment with the tax office.

If you plan to sell in the next year or two, check that market value against real sales, and protest if it is high. Your own bill may barely move. Your buyer’s math, and how your home compares with the others they are touring, can move a lot.