The over 65 exemption in Austin applies primarily to the school district tax - which is the biggest chunk of the total tax. Unfortunately, this tax is frozen when you reach 65 - not eliminated. The good news is that it will never go up for you once you turn 65. As others have pointed out, our lack of state income tax still makes Texas a good choice for retirees.

What kind of lifestyle are you interested in? Interestingly enough, a large percentage of people buying the newer downtown condos are retirement age.

Sat May 10 2008, 16:01

Each taxing unit in Texas can offer their own 65+ property tax exemption and they vary greatly, which is why it's tough to pin anyone down on an authoritative answer. In my work with Coastal Bend (Corpus Christi area) relo-retirees, I have developed a comparison chart for property tax exemptions for 4 area coastal counties. I can fax or e-mail that information to prospectrive clients. I would expect that someone has done such research for Hill Country retirement communities, also. If not, someone should.

Thu May 8 2008, 19:46

One other thing, they can get an over 65 exemption which lowers their property taxes.

Tue Nov 27 2007, 06:56

One other thing to consider, our property taxes may seem high to others because we do not have a state income tax. Makes a difference!

Tue Nov 27 2007, 06:53

No way. They tend to buy here becuase we have great laws for retires... like never raising taxes.. exemptions etc...

Tue Nov 13 2007, 23:40

Will....I almost never hear this really used as a consideration. Maybe someone somewhere sits down and looks at Scottsdale...vs...Austin....vs....San Miguel....vs....Honolulu...and what the costs are for each place, but I just never hear that. Seems like most often they're pretty focused on one place or another and aren't as concerned about taxes, gasoline costs, or health care costs in one local vs another.

Sat Nov 10 2007, 16:33

Probably not. I am in Dallas but my mother is located in the area and I know it well. As a person who is not only an agent but also achieved a Masters in Accounting I can assure you that higher taxes county to county will make a very small impact if any on a person's decision to move to an area. Take into consideration that as a retiree the person is most likely claiming the property as a homestead exemption and also is claiming some tax deductions from interest they might be paying. In the majority of Texas counties a home owner's taxes are largely of set by these tax advantages. Even if the person will not have a mortgage and therefore no interest charges to claim, it would take a substantial sales price to weigh out that individual's appeal to the area. If you are interested in the purchase of a property in this area you should consult a local CPA who can explain in detail the implications of property taxes at the end of the day!

J. Stotle Baird

Sat Nov 10 2007, 15:56