PILLAR: Fiscally Sound
AGENDA DATE: June 24, 2026
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Budget and Management Services
PRIORITY: N/A
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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
Scen...
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