Texas poised to boost homestead exemption. Here’s how that would save you tax money
Update: The Texas House on May 21 gave final approval to Senate Bill 4 and Senate Bill 23, sending the legislation back to the Senate as amended. The Senate can accept the changes or the bills could go to a conference committee made up of House and Senate members to negotiate compromise versions.
The Texas Legislature is poised to increase the state’s homestead exemption by at least $40,000 for homeowners, effectively lowering school taxes for property owners on their primary residence.
The move is part of a package of property tax relief bills making their way through the Capitol in the Legislature’s final weeks. If approved by voters, the homestead exemption on school property taxes would increase to $140,000, up from $100,000.
If approved by the Legislature and signed by Gov. Greg Abbott, the measure would then need to be approved by the state’s voters in a constitutional amendment election on Nov. 4 before it could take effect. If approved, homeowners would get the increased exemption when they pay their property tax bill in 2026.
The exemption was increased from $60,000 to $100,000 following the 2023 legislative session. The measure received overwhelming approval in the November 2023 constitutional amendment election.
“(Senate Bill) 4 builds upon this by ensuring our state surplus is returned to our constituents,” said Rep. Morgan Meyer, a University Park Republican who is carrying the bill in the Texas House.
The bill before lawmakers this legislative session allows for additional state aid for districts affected by homestead exemption increases.
The bill received unanimous approval on May 20, despite some lawmakers seeking a larger exemption. It needs one more vote before heading back to the Senate for approval. If the Senate agrees to the House changes, the bill will head to Abbott’s desk.
Rep. Mike Olcott, a Fort Worth Republican, proposed raising the exemption to $160,000, but the amendment failed to pass.
Olcott said he gets numerous phone calls and emails about property tax relief.
“I’m just disappointed in the amount of property tax relief that we’re going to be giving to our citizens of this great state,” Olcott said.
During debate on the amendment, Meyer said the property tax relief package has been “tightly negotiated” between state leadership. Cuts would have to come from elsewhere in the budget to pay for a higher exemption, he said.
“I have no doubt that every member in this chamber wants to provide as much property tax relief as we possibly can but also that we can afford,” Meyer said.
Lawmakers also voted to increase the homestead exemption to $200,000 for Texas who are 65 and older or disabled, passing Senate Bill 23 unanimously. The preliminary approval is also subject to one more vote before heading to the Senate. That measure would also need to be approved in a constitutional amendment election.
The proposals are part of $10 billion in property tax relief proposed by the legislature, Meyer said. That package also includes about $3 billion to cut to school tax rates triggered by a 2023 bill and a $125,000 exemption for businesses on taxable personal property, Meyer said. The business tax exemption is already headed to Abbott’s desk.
How much could Tarrant County homeowners save on their property tax bill?
For a $350,000 home and accounting for the proposed $140,000 exemption, homeowners in this sampling of Tarrant County districts would see an estimated:
Savings of about $425 if they live in the Fort Worth school district.
Savings of about $441 if they live in the Arlington school district.
Savings of about $434 if they live in the Keller school district.
Savings of about $459 if they live in the Mansfield school district.
Savings of about $388 if they live in the Hearst-Euless-Bedford school district.
These calculations use 2024 rates, the most recently available on the Tarrant County Appraisal District website. It does not account for how rates could change due to legislative appropriations for cuts or rate changes as set by school districts.
A negotiated state budget has not yet been released or voted on.
This story was originally published May 20, 2025 at 3:45 PM.
