Property owners across Texas are now experiencing the benefits of significant property tax relief measures that have been fully implemented. After facing incredible increases in property values in recent years, Texans have also seen increased property tax bills. But, combined with inflation, turbulent job markets, and—for many home-owning seniors—fixed incomes, the situation became untenable. The tax relief laws enacted in 2023 and expanded in 2025 have provided thousands of dollars in savings for property owners.
But, despite the savings, homeowners can further protect their finances by protesting their property taxes. By both harnessing the current savings and making sure your property’s tax appraised value is an accurate reflection of the market, you can significantly lower your property tax bill. To do so, you need to know both how the current laws affect you and why you still need to protest every year.
Current Texas Property Tax Laws: What You Need to Know
In 2023, the Texas legislature passed a series of bills that made significant changes to how Texans pay their property taxes. These measures were approved by voters in November 2023 and have been in effect for over a year now. More recently, in February 2025, the Texas Senate unanimously approved additional property tax relief that will further benefit homeowners.
Consider these key features of Texas property tax relief:
Current Homestead Exemption: $100,000
Homeowners can apply for a homestead exemption if they own a qualifying property as their primary residence. Homestead exemptions offer these benefits:
- A reduced amount due for school district taxes. In most counties, school district taxes are around 1%, or half of the total property taxes due. With a homestead exemption, the first $100,000 of your property’s value is removed from calculating the amount you owe for school district taxes.
- A taxable value increase cap. Appraisers calculate the value of homes every year, using a combination of new appraisals and algorithms. Depending on market conditions in your neighborhood, your home may appraise for an increase of 10, 15, or even 20% in a single year. But the exemption caps your home’s taxable value increase at 10%. Your homestead exemption only limits increases to your home’s taxable value, which is the number tax assessors use to calculate your bill. This is a crucial distinction because it does not impact your home’s appraised value. The tax appraised value can still increase significantly each year unless you actively protest your property tax assessment annually.
For example, suppose you have a $325,000 home in a jurisdiction with a 1.10% school district tax and a 2% total tax rate. With the current $100,000 homestead exemption, you pay $5,400 in property taxes, saving $1,100 compared to what you would pay without the exemption.
Proposed Increase to $140,000 Homestead Exemption
In February 2025, the Texas Senate unanimously approved Senate Bill 4, which would increase the homestead exemption from $100,000 to $140,000. This bill still needs approval from the Texas House and would ultimately require voter approval to amend the Texas Constitution.
If approved, this increase would provide substantial additional relief for homeowners. According to state Sen. Paul Bettencourt, who authored the bill, in nearly half of Texas school districts, the average home value sits below $140,000. This means the average homeowner in these districts would effectively pay no property taxes toward public schools. Estimates also suggest that at least 80% of Texans age 65 and up would be exempt from school taxes if this exemption takes effect.
Assessment Value Cap for Non-Homesteaded Properties
However, not all properties can receive the benefits of a homestead exemption—only qualifying primary residences do. For all other types of properties, such as rental properties and second homes, there is no exemption or protective cap preventing sharp property value increases.
Starting January 1, 2025, SB 2 implemented “circuit breaker” limits on how much the appraised value of non-homestead properties valued at $5 million or less can increase. This protection offers multiple benefits:
- Property investors and people with more than one home will save on property taxes because the cap will curtail steep increases in the property’s tax bill.
- The cap also makes property tax payments more predictable. Lenders can more accurately estimate monthly funding into escrow accounts, and property owners won’t be as shocked by turbulent tax obligations.
- Tenants and property occupants also benefit. Increasing property taxes lead to increased rental rates, but lower increases in property tax obligations lead to lower rent hikes.
Changes to the Property Tax Protest Process: Voted-In Appraisal District Board Members
Another important change that has been implemented involves the governance of appraisal districts.
When property owners protest their property taxes, the protest often culminates in a hearing in front of an Appraisal Review Board. This board will hear arguments from the county appraiser and the protesting property owner, and they will make the final decision on what the property’s appraisal value will be recorded as on the district roll.
Previously, the appraisal district’s board of directors were all appointed members. The legislation now requires that three members are voted into their positions. This ensures greater public choice and engagement regarding the direction of the board of directors.
How Current Texas Property Tax Laws Affect Your Property Tax Bill
The property tax laws that began implementation in 2023 have already provided significant relief for Texas property owners. According to estimates from the Texas Comptroller’s office, these measures, combined with other moves enacted since 2019, have helped slow the growth of property tax bills across the state.
In August 2023, Governor Abbott stated these measures would ensure “more than $18 billion in property tax cuts—the largest property tax cut in Texas history.” The Texas Legislature is slated to spend at least $51 billion on tax cuts, including property tax cuts, in the state’s upcoming two-year budget.
What these tax laws mean for the majority of homeowners and property owners across the state:
- Homeowners with an active homestead exemption in place save approximately $600 with the $100,000 exemption at a 1% school district tax rate.
- If the proposed increase to $140,000 is approved, homeowners would save an additional $400 per year at the same tax rate.
- Non-homesteaded property owners benefit from the “circuit breaker” limits on appraisal increases for properties valued under $5 million.
Combined, these cuts would save a homeowner paying the average school district tax rate about $528 on their taxes based on 2024 rates, according to Texas Tribune calculations.
5 Reasons Why You Still Need to Protest Your Property Taxes Every Year
Despite all the benefits the tax laws bring to the table for property owners across the state, it’s still important for property owners to protest their taxes every year. What exactly does it mean to protest your property taxes? The term is a bit of a simplification. You’re not protesting the tax bill itself; you’re protesting the tax appraised value of your property, which local tax assessors use to calculate your property’s taxable value and then calculate your property tax bill off of that. Here are five reasons you need to exercise your right to protest.
Reason #1: Homestead Exemptions Don’t Affect Your Home’s Appraised Value
Earlier, we discussed how a homestead exemption doesn’t affect your home’s appraised value—it only impacts the taxable value. This means that if your home is worth $300,000 this year and it increases 20%, the appraised value is $360,000 but the taxable value caps at $330,000. If it’s 20% again the following year, the appraised value is $432,000 and the taxable value is capped again at $363,000.
If your home is sold, inherited, or simply loses its exemption at any point, the value skyrockets all the way to that $432,000 and can’t be lowered back down. The only way to keep the appraised value in check is to monitor it and protest it every year.
Reason #2: Property Appraisals Can Still Be Inaccurate and Unfair
The property tax changes don’t address any potential flaws in the property appraisal process carried out by local governments. It’s still possible for appraisers to not see easements that affect your property, not realize that the seemingly comparable properties they’re using to adjust your property’s value aren’t truly comparable, or simply make mistakes.
Reason #3: Circuit Breaker Protections Have Limitations
The “circuit breaker” protections for non-homesteaded properties valued under $5 million provide important safeguards, but they don’t eliminate the need to monitor your property’s appraised value. If your property exceeds the $5 million threshold or if there are errors in your property’s assessment, you’ll want to ensure your appraised value is fair and accurate.
Reason #4: Protesting Property Taxes Every Year Methodically Lowers or Reins in Your Property Tax Bill
When you protest your property’s appraised value, you’re keeping one hand on the wheel. You or your appointed representatives can investigate the rationale behind the newest appraisal value, address any mistakes that you think may have caused it, and present an argument to the review board. Even in years when they don’t accept your countervaluation, you may receive a compromise or a partial reduction.
Reason #5: Get Peace of Mind in Knowing You Have the Lowest Possible Tax Bill
Some years, you may not receive any compromise, and the review board might maintain the tax appraised value originally determined by the county appraiser. When this happens, you have the peace of mind of knowing that you did everything you could to reduce it and didn’t leave any money on the table. Just be sure you protest the next year instead of giving up on the process. Every year is different and has no bearing on the previous year.
Don’t Rely on Just Current Tax Relief—Protest Your Property Taxes with Expert Help
You need to protest your property taxes every year, but you don’t have to do it alone. The best property tax protest professionals can file your protest form, represent you during conversations with the central appraisal district and during official hearings, and fight for your right to the lowest possible tax bill. The process should make sign up simple, and licensed professionals should do all the work for you—every year.
Sign up with Home Tax Shield today to combine the current property tax savings with savings from a fair home appraisal value.