A sweeping package aimed at reducing property taxes for Texas homeowners is headed to Gov. Greg Abbott’s desk — and to voters in November — after lawmakers in both chambers gave final unanimous approval to key legislation Thursday.
The package centers on increasing the state’s homestead exemption, a long-standing priority for Lt. Gov. Dan Patrick. The plan includes two proposed constitutional amendments: one that would raise the homestead exemption from $100,000 to $140,000 for all homeowners, and another that increases it to $200,000 for Texans who are disabled or over the age of 65.
The proposed amendments were filed with the Secretary of State last week. The corresponding bills — Senate Bill 4 and Senate Bill 23 — were sent to Abbott for signature on Thursday.
According to the Dallas Morning News, this year’s property tax agreement came together quickly among top Republican leaders, in contrast to the 2023 session, when prolonged disputes forced multiple special sessions. Patrick said he and House Speaker Dustin Burrows settled on the current proposal “in 15 minutes of conversation and a handshake.”
In total, the plan would direct roughly $10 billion toward tax relief for homeowners and small businesses. About $3 billion of that comes from the state’s general revenue fund, and another $3.5 billion is earmarked to lower school district taxes. An additional $3 billion will be placed in a property tax relief fund for future efforts or unforeseen shortfalls.
The exemption increases apply only to primary residences and do not benefit renters or commercial properties. However, a separate bill increasing the business personal property exemption was also sent to the governor last week.
Bettencourt said the $140,000 exemption would save the average homeowner nearly $500 annually when combined with lower school district tax rates. For seniors and Texans with disabilities, the increased $200,000 exemption could mean yearly savings of more than $900 — and in many cases, the complete elimination of their school property tax bill.
“With today’s passage, the Texas Senate has made it clear: more property tax reduction is on the way!” concluded Bettencourt.
The funding is included in the state’s two-year budget, which lawmakers are expected to finalize soon.
Last year, voters approved increasing the school district exemption from $40,000 to $100,000, a move that saved the average homeowner about $700. The 2023 tax package totaled $18 billion, with $12.7 billion allocated to new property tax cuts.
