Lt. Governor Proposes Granting Over-65 Tax Breaks To Homeowners Over The Age Of 55

By Author: O'Connor P{roperty Tax
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Property values and taxes have been skyrocketing throughout Texas, especially in Harris, Travis, and Dallas counties, with trendy counties like Denton and Collin jumping even faster. With some of the highest property taxes in the United States already, this puts an even greater burden on taxpayers in those areas. This not only makes getting into those markets difficult but also makes it harder for families to stay in their homes and for small business owners to turn a profit. While Texas does not have an income tax, these real estate taxes have been recognized as an impediment to growth.

November 2025 saw a large overhaul of the property tax system in Texas, creating new opportunities for homeowners to lower their tax burdens like never before. This has opened the door for more debate about property taxes. Some, such as Governor Greg Abbott, want to eliminate property taxes for schools. To counter this, Lt. Governor Dan Patrick has proposed the Double Nickel plan, which will instead lower school property taxes through exemptions, while still maintaining funding at the local level. In this article, we will take a look ...
... at what the effects of this proposal might be.

November 2025 Changes
Several pieces of legislation in 2025 managed to grant breaks to homeowners, including a homestead exemption of $140,000. The other key property tax bill was one that expanded the senior exemption from just $10,000 to $60,000. Both of these exemptions applied just to public school taxes, though some counties extended them to other types. Unlike many other exemptions, the homestead and the over-65 exemptions stack with each other, creating a final protection of $200,000.

This completely removes many seniors from the obligation of school taxes entirely. The burden shifts away from older homeowners, allowing them a better chance to stay in their homes, since property taxes are typically the largest bill that Texans see each year. Public school taxes have traditionally been the largest of the three property tax types, but this has changed since legislation in 2023 expanded the homestead exemption from $40,000 to $100,000.

Double Nickel Changes Under 65 to Under 55
Operation Double Nickel, as proposed, piggybacks off the changes from 2025. The largest change proposed is how seniors are classified in the eyes of the law for taxing purposes would decrease by 10 years. This means that residential property owners who are 55 or older could then apply for the senior exemption, essentially changing it to over-55. This would offer qualified homeowners between their prime working years and retirement a huge opportunity to eliminate school taxes entirely on their primary residence, just like seniors currently can. In theory, this would also grant homeowners more financial flexibility, as people 55 and over are often still working. Many also have college-aged children, which could help the next generation as well.

It is estimated that Operation Double Nickel would add over 3 million Texas homeowners to the lower tax threshold, saving hundreds of millions of dollars, possibly billions. The average taxpayer entering this age range would save around $1,000 every year. Needless to say, this would provide a helping hand to millions of people, especially those flirting with retirement.

Another Exemption Increase
Operation Double Nickel would not stop at just expanding the exemption age range; it would also strengthen the exemption even more. Under the proposal, the standard homestead exemption would grow to $180,000, benefiting homeowners of all ages. Of course, this would also stack with the $60,000 over-55 exemption, potentially granting older homeowners a total exemption of $240,000. This gives Operation Double Nickel an excellent one-two punch that should gain plenty of support in the 2026 legislative year.