Presentation: Impact of SB 23 on Texas Over-65 and Disabled Homesteads (updated)

Impact of SB 23 on Texas Over-65 and
Disabled Homesteads
Senate Bill 23 increases the additional Over 65/Disabled Homestead Exemption
from the current $10,000 to $60,000, an increas of $50,000.
Senate Bill 4 and Senate Bill 23 together increase the Homestead Exemption for
Over-65 and Disabled Texans to a total of $200,000, if approved by voters in
November 2025.
Senate Bill 1 provides for 6.01 cents of school district tax rate compression,
lowering the average ISD tax rate from $0.9766 to $0.9165.
SB 23 Savings $454.30
SB 1 & SB 4 Combined Savings $484.42
Total Estimated Savings $938.72

Tax Year 2024 Estimate of Over-65 and Disabled Homesteads
with $0 ISD Property Tax Bill
# of Over 65 and % of Over 65 and
21 out of 30 of the Most Total # of Over 65 and Disabled Homestead Disabled Homestead Average Over 65 and Average O65/Disabled
Populous Counties in Disabled Homestead properties with ISD tax properties with ISD tax Disabled Levy by ISD Taxable Value
Texas Properties bill equal to $0 bill equal to $0
Harris County 135,985 67,335 50% $931.46 $201,797
Dallas County 108,666 58,026 53% $1,940.53 $384,120
Tarrant County 139,149 62,078 45% $2,333.57 $210,582
Bexar County 166,428 87,932 53% $487.34 $112,947
Travis County 75,660 18,146 24% $2,451.15 $474,852
Denton County 57,274 10,463 18% $1,928.20 N/A
Fort Bend County 63,870 14,550 23% $1,174.95 $209,328
Hidalgo County 58,648 44,343 76% $166.92 $33,556
El Paso County 68,633 50,059 73% $186.87 $49,631
Montgomery County 53,695 18,572 35% $1,172.28 $224,470
Williamson County 47,191 8,925 19% $1,604.25 N/A
Cameron County 33,132 32,532 98% $4,521.00 $37,239
Brazoria County 30,936 20,365 66% $719.65 $144,807
Bell County 29,023 14,299 49% $795.00 $246,279
Galveston County 12,542 6,477 52% $576.28 $142,084
Nueces County 33,818 24,484 72% $598.02 $117,578
Ellis County 18,656 7,085 38% $723.04 $139,124
Johnson County 19,345 10,088 52% $668.84 $128,755
Comal County 122,204 20,092 16% $552.16 N/A
Guadalupe County 15,456 7,943 51% $707.88 N/A
Smith County 25,079 11,954 48% $780.59 $133,018
Total 1,315,390 595,748 45% $1,191.43 $175,892
Notes:
-All ISD Specific Data is Available
-4 Remaining Data Points (N/A) have been requested
-All data was collected by each County Assessor-Collector/Tax Office
-All 5th column data points are the taxable values not assessed or appraised values

History of Recent Homestead Exemptions and Over-65
“Freeze Value” Changes by
Constitutional Amendment
May 2022 November 2023
Prop 1: Changed Over-65 and Disabled “Freeze Record $22.7 billon Property Tax cut approved by
Values” to reflect actual tax reductions based on voters at 83.44% Increased the ISD Homestead
increased exemptions and State-funded M&O Exemption from $40K to $100K plus the creation
property tax rate cuts. Approval was 87%. of the Property Tax Relief Fund.
Prop 2: Increased ISD Homestead exemption
from $25K to $40K for all 5.7 Texas Homeowners.
Approved by 85%.
November 2025 Constitutional Amendment Election
❖ SB 4 -- Raising the ISD Homestead Exemption 40% -- from $100K to
$140K for all 5.7 million Texas Homesteads. Combined with SB 1 tax
rate compression, provides average savings of $484.42
❖ SB 23 -- Raising Over-65 and Disabled exemption an additional $50K --
from $10K to $60K, totaling $200K for over 2.08 million Texas
Homesteads. Provides additional savings of $454.30

Business Personal Property Exemption Increase
➢ A proposed Constitutional Amendment, if approved by voters in
November 2025, would increase the exemption to $125,000, will save
the average business $2,499.
➢ There are protections in the bill to prevent abuse of this new increase.
➢ A benefit, in addition to the increase of the exemption amount, is the
reduction in time and expense businesses require to complete their
renditions forms.