What Trump’s ‘Big Beautiful Bill’ means for Texas homeowners
A higher threshold for property tax deductions and the ability to deduct mortgage insurance costs are two big wins for Texas homeowners following the passage of President Trump’s “Big Beautiful Bill,” according to Paul Epperley, president of the Greater Fort Worth Association of Realtors.
The bill, which became law on July 4, codified soon-to-expire tax breaks that were first put in place under the Tax Cuts and Jobs Act of 2017. It also increased existing tax deduction limits and largely eliminated taxes on tips and overtime pay.
One big takeaway for homeowners, Epperley said, is that they can now deduct the premiums they pay each month for mortgage insurance. Borrowers who put down less than 20% of their homes’ purchase price as a down payment are subject to mortgage insurance, which is paid to the lender.
“Let’s face it, these days probably 80% of borrowers are using a program where they’re not putting 20% down on a home,” Epperley said. “And so they have to have mortgage insurance, and those premiums can be $1,500 to $3,000 a year or more.”
The mortgage insurance tax deduction is limited to borrowers with a mortgage of less than $750,000, but, Epperley said, that still impacts the vast majority of American homeowners.
Starting this year, taxpayers can also deduct a larger portion of their state and local taxes when filing their federal income taxes, which means homeowners can write off more of their property taxes.
Previously, taxpayers could deduct up to $10,000 in state and local taxes. The Big Beautiful Bill raised that to $40,000, with 1% increases to that ceiling over the next four years.
Tax rates vary by city and school district, but according to SmartAsset, Fort Worth residents start paying more than $10,000 in property taxes once their home values exceed $550,000. The estimated property tax bill for a $1 million home in Fort Worth is just north of $18,000.
According to Bankrate, the median home sales price in Fort Worth is around $330,000, so it’s likely the increase to the state and local tax deduction limit will primarily impact owners of highly valued homes. Still, with home prices rising, it’s possible that some middle-class homeowners will see a benefit.
Epperley said the National Association of Realtors advocated for homeowner tax relief in the Big Beautiful Bill.
“We all went in June this year to D.C.,” he said. “There were about 7,500 Realtors who went to the Hill. We visited with every representative and 40 of the senators in groups just to promote these issues, like a show of force. We’re definitely out there on the advocacy front.”
The reaction to the Big Beautiful Bill has been mixed, with some saying it mostly benefits the wealthy while adding trillions to the national deficit, but Epperley believes it will ultimately be good for homeowners.
“There’s a lot of chatter and clutter around this bill,” he said. “Whatever side you’re on, you’re going to find something to hate or love about it. But it’s hard not to love the stuff that helps the average American. This isn’t helping a big corporation. This is helping average homeowners that really need it sometimes.”
This story was originally published July 22, 2025 at 6:00 AM.