Texas Property Tax Proposal: Increasing the Homestead Exemption
In February 2025, the Texas Senate unanimously passed Senate Bill 4 (SB 4) and Senate Joint Resolution 2 (SJR 2), introducing a significant increase to the state's homestead exemption. This legislative move aims to provide substantial property tax relief to homeowners across Texas.
Overview of Senate Bill 4 (SB 4)
Authored by Senator Paul Bettencourt and championed by Lieutenant Governor Dan Patrick, SB 4 proposes the following key changes:
- Increased Homestead Exemption: Raises the homestead exemption for school district property taxes from $100,000 to $140,000 for general homeowners. Voters approved this as Proposition 13 in November 2025, but the increase is pending final implementation. Texas Lieutenant Governor's Office
- Additional Benefits for Seniors: For homeowners aged 65 and older, the exemption increases to $150,000, offering enhanced relief to senior citizens. Texas Lieutenant Governor's Office
- School District Compensation: Includes provisions to ensure that school districts are reimbursed for any revenue losses resulting from the increased exemptions, safeguarding public education funding. Chron
Impact on Residential Property Owners
The proposed changes are poised to have a notable impact on homeowners:
- Tax Savings: The average Texas homeowner is projected to save approximately $363.44 annually due to the increased exemption. When combined with existing tax rate compression measures, total savings could reach around $496.57 per year. Texas Lieutenant Governor's Office
- Elimination of School Property Taxes in Some Districts: In nearly half of Texas school districts (49%), where the average home value is below $140,000, homeowners may see their school maintenance and operations (M&O) property taxes eliminated entirely. Texas Lieutenant Governor's Office
- Long-Term Relief: By embedding these exemptions into the Texas Constitution, homeowners are assured of enduring tax relief, with the increased exemptions applying retroactively to 2025 tax bills upon voter approval. Texas Lieutenant Governor's Office
Current Status
SB 4 was passed by the Legislature and voters approved it as Proposition 13 in November 2025. However, the increase from $100,000 to $140,000 is pending final implementation. The current school district homestead exemption remains $100,000.
If you already have a homestead exemption on file with your county appraisal district, the increased amount will be applied automatically once implementation is finalized. No additional action is needed.
Note: Property tax laws and proposals are subject to change. Homeowners are encouraged to stay informed and consult with tax professionals for personalized advice.
