Texas Property Tax Deferral for Seniors: What It Really Costs
Last Updated: August 31, 2026
Deferral pauses property tax collectionon your Texas homestead — it does not cancel the tax. Interest keeps accruing at 5% per year and a lien remains on the property until it's eventually paid.
Who qualifies
a person 65+, a person disabled under §11.13(m), or a disabled veteran under §11.22, on their residence homestead — who can defer. Tax year current.
As of 2026-08-31, per Texas Tax Code, Chapter 33 (Tax Code §33.06(a)).
This page explains what the published rules say. It is not tax, legal or financial advice, and it is not a determination of your eligibility. Only your county appraisal district can tell you whether you qualify. Figures are for the tax year shown and were last verified on the date shown.
Two different programs — don't mix them up
Texas actually has two separate deferral mechanisms with two different interest rates. The one most seniors mean when they say “the deferral” is the age-65/disabled/disabled-veteran deferral under §33.06:
5% per year — property tax deferral interest rate (age 65+/disabled/disabled veteran). Tax year current.
As of 2026-08-31, per Texas Tax Code, Chapter 33 (Tax Code §33.06).
A separate, less-used provision lets a homeowner defer collection specifically tied to an appreciating homestead value under §33.065, at a different rate:
8% per year — deferral of collection on appreciating residence homestead value (a different, less-used program — not the same as the 65+ deferral above). Tax year current.
As of 2026-08-31, per Texas Tax Code, Chapter 33 (Tax Code §33.065).
These are not interchangeable, and mixing them up will get you the wrong interest math. Confirm with your appraisal district which provision applies to your filing.
The lien doesn't go away
Deferral is not forgiveness. A tax lien remains on the property for the deferred amount plus accruing interest the entire time the deferral is active.
do not accrue during deferral; interest keeps accruing and a tax lien remains on the property — penalties during an active deferral. Tax year current.
As of 2026-08-31, per Texas Tax Code, Chapter 33 (Tax Code §33.06).
When the deferral ends — because you sell, move out, or pass away — the deferred taxes and accumulated interest generally become due. See our page on what happens to deferred taxes when you die for the specific timeline and protections that apply then.
How to file
File Form 50-126, the deferral affidavit, with your county appraisal district.
Form 50-126 — deferral affidavit form. Tax year current.
As of 2026-08-31, per Texas Comptroller, Property Tax Forms (Tax Code §33.06).
If you have a mortgage
Deferral affects a lender's security position on the property, since it adds an accruing lien balance. Some mortgage servicers may have views on a borrower deferring property taxes — this is a genuine consideration to raise directly with your servicer before filing, not something we can generalize about without knowing your loan terms.
Deferral vs. a payment plan vs. a reverse mortgage
These are three different tools for three different situations, and none of them is universally better. A payment plan with your tax office spreads a specific delinquent balance over time without adding a deferral-specific interest structure. A reverse mortgage draws on home equity through a separate loan product entirely, with its own costs and terms set by a lender. Deferral, by contrast, is a statutory right you exercise directly with your appraisal district, at the fixed rate shown above. We don't recommend a specific path here — talk to your appraisal district about deferral mechanics and, separately, a financial advisor or housing counselor about the other two.
Frequently Asked Questions
What does deferral actually do?
It stops your county from collecting property taxes on your homestead while you own and occupy it. It does not cancel the tax — the amount owed keeps accruing interest, and a lien remains on the property until it's paid, typically from the estate or sale proceeds.
What interest rate applies to a 65+ deferral?
5% per year on the deferred amount, under Tax Code §33.06. This is different from the 8% rate that applies to a separate program for deferring collection on an appreciating homestead value under §33.065 — don't confuse the two.
Do penalties pile up too?
No. Penalties do not accrue during an active deferral, but interest keeps accruing and the lien remains on the property.
What form do I file to defer?
Form 50-126, the deferral affidavit, filed with your county appraisal district.
Can my mortgage company object to a deferral?
Potentially — deferral affects a lienholder's position, so if you have a mortgage, discuss it with your servicer before filing. This is a real consideration, not a formality.
Is deferral better than a payment plan or a reverse mortgage?
There's no universal answer — it depends on your equity, your heirs' plans for the home, and how long you expect to stay. This page describes what each option is, not which one you should pick.
Sources and Last-Verified Dates
| Figure | Tax Year | Source | Verified |
|---|---|---|---|
| Who can deferTax Code §33.06(a) | current | Texas Tax Code, Chapter 33 | 2026-08-31 |
| Property tax deferral interest rate (age 65+/disabled/disabled veteran)Tax Code §33.06 | current | Texas Tax Code, Chapter 33 | 2026-08-31 |
| Deferral of collection on appreciating residence homestead value (a different, less-used program — not the same as the 65+ deferral above)Tax Code §33.065 | current | Texas Tax Code, Chapter 33 | 2026-08-31 |
| Penalties during an active deferralTax Code §33.06 | current | Texas Tax Code, Chapter 33 | 2026-08-31 |
| Deferral affidavit formTax Code §33.06 | current | Texas Comptroller, Property Tax Forms | 2026-08-31 |