Texas voters approved historic property tax relief in November 2025, delivering the largest tax cut package in state history.
- The general homestead exemption increased from $100,000 to $140,000, saving the average homeowner approximately $484 annually on school taxes
- Seniors and disabled homeowners now receive a combined exemption of $200,000, potentially eliminating school property taxes entirely for many
- The state committed $51 billion over two years to fund these reductions without cutting school funding
- Filing for your homestead exemption remains essential to access these savings, and annual protests can reduce your tax bill even further
Texas homeowners received welcome news when voters overwhelmingly approved a slate of constitutional amendments in November 2025 that dramatically expanded property tax protections. With the general homestead exemption jumping to $140,000 and seniors seeing their total exemption reach $200,000, the new Texas property tax relief laws represent a significant shift in how the state approaches homeowner taxation. According to the Texas Tribune, the state will spend $51 billion over the next two years on property tax cuts, reflecting widespread recognition that property tax burdens had become unsustainable for many families.
These changes take effect January 1, 2026, with some provisions applying retroactively to the 2025 tax year. Understanding what changed, how much you could save, and what steps you need to take will help you maximize the benefits of this landmark legislation.
What Changed With Texas Property Tax Relief Laws?
The 2025 legislative session produced three major bills that Governor Greg Abbott signed into law in June 2025. These bills required voter approval through constitutional amendments, which Texas voters delivered decisively in November. Together, these Texas property tax relief 2025 laws create multiple layers of savings for homeowners, seniors, and businesses throughout the state.
The scope of this relief package is unprecedented. During the signing ceremony in Denton, Governor Abbott emphasized the historic nature of these changes: “When I became Governor, the homestead exemption was $15,000. With Senate Bill 4, the homestead exemption is now $140,000, an almost 1,000% increase. Seniors’ homestead exemption now goes all the way up to $200,000.”
Texas voters overwhelmingly approved the constitutional amendments in November 2025, with Proposition 13 receiving 79% support and Proposition 11 earning 77% approval. Lt. Governor Dan Patrick, a leading advocate for the relief package, stated that homeowners under age 65 could see their school taxes cut by “almost 50%” when combining the new exemptions with ongoing rate compression efforts. The Houston Chronicle editorial board noted that while they supported the measure, lawmakers should approach future cuts cautiously given the state’s long-term fiscal obligations.
Here is a breakdown of the three bills now in effect:
- Senate Bill 4 (SB4): Increases the mandatory school district homestead exemption from $100,000 to $140,000 for all eligible homeowners
- Senate Bill 23 (SB23): Raises the additional exemption for homeowners aged 65 or older and those with disabilities from $10,000 to $60,000, bringing their combined total to $200,000
- House Bill 9 (HB9): Increases the business personal property tax exemption from $2,500 to $125,000, providing significant relief for small and medium-sized businesses
The $140,000 Homestead Exemption (Proposition 13 and SB4 Texas)
The cornerstone of the new relief package is Senate Bill 4, which voters ratified through Proposition 13. This legislation increased the mandatory school district homestead exemption from $100,000 to $140,000. Since school district taxes typically represent the largest portion of a homeowner’s property tax bill, this homestead exemption increase delivers the most substantial savings for most Texas families.
The math is straightforward. If your home has a tax appraised value of $350,000 and you qualify for the homestead exemption, the first $140,000 of that value becomes exempt from school district taxation. You would pay school taxes only on the remaining $210,000 rather than on $250,000 under the previous exemption amount. At typical school tax rates, this additional $40,000 in exemption value translates to real savings on your annual bill.
The SB4 Texas legislation also includes provisions ensuring that school districts receive adequate state funding to compensate for reduced local revenue. This means your local schools should not experience budget cuts as a result of your tax savings.
Enhanced Senior and Disabled Exemptions (Proposition 11)
Texans aged 65 and older, along with those with qualifying disabilities, received even more substantial relief through Senate Bill 23 and its corresponding Proposition 11. This legislation increased the additional exemption for these homeowners from $10,000 to $60,000, representing a sixfold increase.
When combined with the general homestead exemption, eligible seniors and disabled homeowners now receive a total property tax exemption of $200,000 for school district taxes. For a senior whose home has a tax appraised value of $200,000 or less, this could mean paying zero school district property taxes. According to Ballotpedia, at least two million Texas households are expected to benefit from this enhanced senior exemption.
The property tax exemption Texas provides for seniors also includes a tax ceiling that freezes school district taxes at the amount paid in the year the exemption was first granted. This protection ensures that even if property values or tax rates increase, the actual dollar amount seniors pay remains stable.
Business Personal Property Relief
While homeowners captured most of the headlines, Texas businesses also received significant relief through House Bill 9. This legislation raised the business personal property tax exemption from $2,500 to $125,000. Business personal property includes equipment such as computers, machinery, inventory, and specialized vehicles.
For small and medium-sized businesses, this change could eliminate business personal property taxes entirely. Texas is one of relatively few states that taxes business inventory, making this relief particularly valuable for companies operating in the state.
How Much Will Texas Homeowners Save Under the New Laws?
The actual savings you experience depend on several factors, including your home’s tax appraised value, your local tax rates, and whether you qualify for additional exemptions. The Texas Tribune reported that the owner of a typical Texas home, valued at approximately $302,000, would save about $490 on their school property taxes with the higher exemption.
Here’s what different homeowners can expect:
- Average homeowner: Approximately $484 to $500 in annual school tax savings from the homestead exemption increase
- Senior or disabled homeowner: Significantly higher savings when combining the enhanced $60,000 exemption with the general homestead increase
- Homeowner in high-tax district: Potentially $600 or more, depending on local school tax rates
- Senior with home valued under $200,000: Possibly zero school district property taxes
The San Antonio Express-News reported that homeowners in the San Antonio area with median-priced homes around $300,000 could expect savings between $400 and $500 annually.
These savings compound over time. Because your exemption reduces your taxable value each year, and because the 10% homestead cap limits how quickly your taxable value can rise, the gap between what you would have paid and what you actually pay grows larger with each passing year.
Who Qualifies for These Property Tax Exemption Texas Programs?
Understanding eligibility requirements ensures you can take full advantage of available relief. The requirements vary depending on which exemption you’re claiming, though the basic homestead exemption has relatively simple criteria that most homeowner-occupants can meet.
General Homestead Requirements
To qualify for the $140,000 general homestead exemption, you must own the property and occupy it as your primary residence. The residence can sit on up to 20 acres of land used for residential purposes. You cannot claim a homestead exemption on any other property in Texas or elsewhere. The property must be owned by an individual rather than a corporation, partnership, or LLC.
New homeowners can apply for the homestead exemption immediately after purchasing their home. While April 30 is the recommended deadline to ensure your exemption applies to the current tax year, you can file late applications for up to two years after the delinquency date.
Senior and Disabled Homeowner Requirements
To claim the additional $60,000 exemption that brings your total to $200,000, you must meet either age or disability requirements. For the age 65 exemption, you must be 65 years of age or older and meet all general homestead requirements. Surviving spouses aged 55 or older may qualify if their deceased spouse received the exemption.
For the disability exemption, you must meet the Social Security Administration’s definition of disability. You cannot claim both the senior and disabled exemptions simultaneously, but since both now provide the same $60,000 additional benefit, this limitation has minimal practical impact.
How to Claim Your Property Tax Exemptions in 2026
Accessing these savings requires filing the appropriate applications with your County Appraisal District. The process is straightforward, but missing steps could cost you hundreds of dollars annually.
Start by obtaining Form 50-114, the Residence Homestead Exemption Application, from your local CAD or the Texas Comptroller’s website. Complete all required sections and provide documentation proving ownership and residency. Submit the form to your CAD by mail, in person, or through their online portal if available.
Once granted, your homestead exemption remains in effect as long as you own and occupy the property. However, appraisal districts must verify homestead exemptions at least once every five years. Responding promptly to verification notices protects your exemption status.
Why Protesting Your Tax Appraised Value Still Matters
While the new exemptions provide automatic savings, they address only part of the property tax equation. Your exemption reduces a portion of your property’s tax appraised value from taxation, but if that underlying value is set higher than fair, you’re still overpaying. This is why challenging your tax appraised value through the annual protest process remains one of the most effective strategies for ensuring you pay only your fair share.
Many homeowners assume they should only protest when their tax appraised value increases dramatically. In reality, protesting annually makes sense regardless of whether the increase seems reasonable. County Appraisal Districts use mass appraisal methods that analyze dozens of data points across thousands of properties simultaneously. While efficient, this approach cannot account for every factor that affects your specific home’s value. An experienced, local tax professional who understands the nuances of your county’s appraisal methods can identify discrepancies that homeowners typically miss.
Consider this scenario: Your home has a tax appraised value of $400,000, and you receive the $140,000 homestead exemption. You pay school taxes on $260,000. But what if your home’s actual fair value is only $350,000? You should be paying taxes on $210,000, not $260,000. The exemption helps, but an inflated tax appraised value still costs you money year after year.
When you successfully challenge your tax appraised value, that reduction becomes your new baseline. Combined with the 10% homestead cap, this creates compounding savings that grow over time. Every time you secure a fair value through the protest process, you’re lowering the starting point for next year’s calculations.
Be cautious of any company that promises specific savings amounts before reviewing your property. No one can guarantee a particular outcome because every property situation is unique. What matters is working with knowledgeable professionals who commit to taking your protest through the entire process, from filing through formal hearings if necessary. Companies that charge only a percentage of savings may cherry-pick properties with obvious reduction potential while ignoring others. A hybrid approach with a modest upfront commitment ensures every property receives a thorough, complete protest regardless of the anticipated outcome.
The protest deadline in Texas is typically May 15 or 30 days after receiving your appraisal notice, whichever is later. Understanding key property tax dates helps you take action before deadlines pass.
Frequently Asked Questions About Texas Property Tax Relief 2026
Do I need to reapply for my homestead exemption to receive the increased benefit?
No. If you already have a homestead exemption on file with your County Appraisal District, the increased exemption amount applies automatically. However, if you’ve never filed for a homestead exemption, you must do so to receive any benefit.
When will I see the savings on my tax bill?
The increased exemptions apply to tax years beginning January 1, 2026. Your October 2026 tax bill should reflect the new, lower taxable value.
Should I still protest my property taxes even with the higher exemption?
Yes. Exemptions and protests work together. Exemptions reduce a fixed dollar amount from your tax appraised value, while protests ensure that underlying value is fair in the first place. Protesting annually helps maintain a fair baseline and prevents overvaluations from compounding over time.
What if my home is worth less than $140,000?
You still benefit from the homestead exemption. Your school district taxes would be zero since your entire home value falls within the exempt amount. The 10% cap on annual increases still applies.
Take Control of Your Texas Property Taxes This Year
The Texas property tax relief laws passed in 2025 represent a genuine opportunity for homeowners to reduce their annual tax burden significantly. With the homestead exemption increase and enhanced protections for seniors and disabled Texans, millions of households stand to save hundreds of dollars each year.
Yet exemptions tell only half the story. Maximizing your property tax savings requires both claiming every exemption you qualify for and ensuring your property’s tax appraised value accurately reflects fair conditions. Home Tax Shield combines technology with experienced local professionals who average 18 to 22 years in the industry to protest your property taxes every year, ensuring you receive a complete, thorough protest and never pay more than your fair share. Get started today and let the experts handle the details while you enjoy the savings.