Historic Property Tax Relief Bills Passed by the Legislature

Press Release FOR IMMEDIATE RELEASE May 29, 2025
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Historic Property Tax Relief Bills Passed by the Legislature

Austin, TX – Today, the Texas Senate granted final passage to significant pieces of legislation that will help reduce the burden of rising property taxes on Texas homeowners: Senate Bill 4/Senate Joint Resolution 2 and Senate Bill 23/Senate Joint Resolution 85. Authored by Senator Paul Bettencourt and joint-authored by Senator Juan “Chuy” Hinojosa, these bills will increase the school district homestead tax exemption.

SB 4/SJR 2 will raise the homestead tax exemption from $100,000 to $140,000. Additionally, SB 23/SJR 85 provides an increased homestead tax exemption for disabled homeowners and those aged 65 and older, raising it from $10,000 to $60,000.

Both measures ensure that school districts will not face funding losses from the higher homestead exemptions, as the state will compensate for the difference through general revenue under the new state aid formulas. If approved by voters in November, these exemptions will apply to property taxes for the current year.

Senator Chuy Hinojosa stated, “Rising property taxes are a pressing concern for Texans and a top priority for Lt. Governor Dan Patrick and the Texas Senate. Over the past decade, we have focused on reducing property tax burdens for families, which often feel like a second mortgage. High property taxes strain homeowners and businesses, making it difficult for families to stay in their homes and hindering economic growth.”

Hinojosa continued, “If approved in November, this legislation will provide significant tax relief by raising the homestead exemption to $140,000 and up to $200,000 for homeowners over 65 and individuals with disabilities. This is the largest tax relief package yet and will save families hundreds of dollars on their property tax bill.”

In 2015, the Texas Legislature approved an increase in the residence homestead exemption from $15,000 to $25,000, followed by a voter-approved increase to $40,000 in May 2022. Most recently, in 2023, the Legislature raised the homestead exemption to $100,000 with an overwhelming 83% approval from voters. Texans will have the opportunity to vote on these new proposed increases in the upcoming November election.