PILLAR: Fiscally Sound
AGENDA DATE: June 24, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
Authorize maintaining the current $175,000 homestead property tax exemption for persons who are disabled or 65 or older at the recommendation of the Committee on Finance - Financing: No cost consideration to the City
Body
BACKGROUND
The City of Dallas grants a homestead exemption of 20 percent or a minimum of $5,000 of the market value of residence homesteads. An additional exemption of up to $175,000 of the market value is granted to those persons who are disabled or 65 or older. The $175,000 exemption has been in effect since tax year 2025 (fiscal year beginning October 1, 2025).
On December 13, 2017, the City Council added Financial Management Performance Criteria (FPMC) No. 23 that requires a comparison of the current exemption for individuals who are disabled or 65 or older to the most recent annual Consumer Price Index (CPI) every two years.
On May 26, 2021, the City Council approved an amendment to FMPC No. 23 that requires a comparison of the current exemption to the most recent annual Consumer Price Index for the Elderly (CPI-E) or the year-over-year change in the average residential market value (whichever is greater) annually.
On March 26, 2025, the City Council approved an amendment to FMPC No. 23 that requires a comparison of the current exemption to the most recent annual CPI-E or the year-over-year change in the median residential market value (whichever is greater) annually.
The FMPC requires an annual review of this exemption, and the analysis of each scenario is provided to City Council for consideration. This year’s analysis was presented to the Committee on Finance on May 26, 2026.
Analysis provided:
|
Over-65/Disabled Exemption Analysis |
|
|
Current Exemption $175,000 |
Scenario A** (CPI-E - 4/25 to 4/26) $181,600 |
Scenario B* (Annual Growth in Median Value) $176,300 |
|
Percent Change in Exemption |
N/A |
3.78% |
0.72% |
|
Change in Exemption |
|
$6,600 |
$1,300 |
|
No. of 65/0ver or Disabled Accounts |
74,447 |
74,447 |
74,447 |
|
Value of Exemption |
$13.0B |
+$491.4M |
+96.8M |
|
Total Revenue Foregone |
$91.0M |
+$3.4M |
+$0.7M |
|
City Tax Bill* |
$925.43 |
$879.31 |
$916.35 |
|
Change in City Tax Bill |
|
($46.12) |
($9.08) |
*Assumes median value of $384,290 and 20% homestead exemption plus age-65/over or disabled exemption
**Eligible homeowners pay no city taxes if market value is $227,000 or less
The committee members voted to maintain the current $175,000 over-65 and disabled homeowner exemption for tax year 2026 (fiscal year beginning October 1, 2026) and to forward this recommendation to the City Council for consideration.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 23, 1986, the City Council established the disabled or 65 or older homestead exemption at $50,000, by Resolution No. 86-1283.
On September 17, 1986, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $50,000 to $64,000, by Resolution No. 86-2926.
On June 28, 2017, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $64,000 to $90,000, by Resolution No. 17-1084.
On June 12, 2019, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $90,000 to $100,000, by Resolution No. 19-0946.
On June 9, 2021, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $100,000 to $107,000, by Resolution No. 21-0976.
On June 8, 2022, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $107,000 to $115,500, by Resolution No. 22-0855.
On June 14, 2023, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $115,500 to $139,400, by Resolution No. 23-0764.
On June 26, 2024, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $139,400 to $153,400, by Resolution No. 24-0967.
On June 11, 2025, the City Council authorized an increase of the disabled or 65 or older homestead exemption from $153,400 to $175,000, by Resolution No. 25-0906.
On May 26, 2026, the Committee on Finance was briefed on the analysis of the over-65 and disabled homestead exemption and subsequently voted to maintain the current exemption for the City Council consideration on June 10, 2026.
The City Council was briefed by memorandum regarding this matter on June 5, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY25-26%20Memos/Upcoming%20Agenda%20Item%2026-1919A.pdf>
FISCAL INFORMATION
No cost consideration to the City.