Texas homeowners could soon see significant savings on their property taxes as the state Senate introduces a bill to increase the homestead exemption from $100,000 to $140,000. If passed, this would mark the largest homestead exemption in Texas history, providing relief to millions of homeowners struggling with rising property tax bills.
What’s in the Proposal?
The proposal, known as Senate Bill 4 (SB 4), was filed by State Senator Paul Bettencourt (R-Houston) as part of an effort to expand tax relief following last year’s record-breaking property tax cuts. Currently, Texas homeowners receive a $100,000 exemption on their primary residence, meaning they don’t pay school property taxes on that portion of their home’s value. The new proposal would increase that exemption to $140,000, reducing taxable home values and cutting tax bills even further.
Why This Matters
Texas has some of the highest property taxes in the nation, and lawmakers have been under pressure to find ways to ease the burden on homeowners. Last year, voters overwhelmingly approved Proposition 4, which raised the homestead exemption from $40,000 to $100,000, delivering an estimated $1,200 in annual savings for homeowners. Now, with rising property values continuing to push tax bills higher, lawmakers believe another increase is necessary.
Bettencourt called the proposed exemption “historic”, saying, “This will deliver direct relief to Texas homeowners, putting money back in their pockets where it belongs.”
How Much Could Homeowners Save?
The impact of the increased exemption would vary depending on local tax rates, but early estimates suggest that the additional $40,000 exemption could save homeowners hundreds of dollars annually on their property tax bills.
Supporters argue that this is a crucial step in keeping homeownership affordable, particularly for senior citizens and low-income homeowners, who often struggle the most with property tax hikes.
What Happens Next?
The bill is expected to gain strong support in the Republican-controlled Texas Legislature, though it still needs approval from both the House and Senate before being signed into law. If passed, the new exemption could take effect as early as the 2025 tax year, offering timely relief for homeowners.
As Texas lawmakers push for greater property tax cuts, this latest proposal signals that more relief could be on the way for homeowners looking to keep their tax bills in check.