HOUSTON, Texas — The Texas House of Representatives advanced legislation on May 20, 2025, to increase property tax exemptions for homeowners statewide. Lawmakers voted 145-0 to pass Senate Bill 4, which raises the school district homestead exemption from $100,000 to $140,000.
The exemption increase will apply to property taxes levied by public schools and will affect more than 5.7 million homeowners across Texas.
Lawmakers also passed a separate bill to raise property tax exemptions for individuals aged 65 and older and for people with disabilities. That bill increases the exemption from $10,000 to $60,000. Senate Bill 23, another component of the property tax package, proposes raising exemptions for those groups to $200,000.
These changes form part of a $10 billion property tax relief plan. Legislators intend to allocate $51 billion toward tax reductions over the next two years. The plan seeks to reduce financial pressure on homeowners and businesses.
Governor Greg Abbott has supported the tax cuts and said they would save the average homeowner more than $1,200 for the 2023 tax year. Lieutenant Governor Dan Patrick also supported the bills and emphasized the bipartisan backing behind the relief package.
Representative Morgan Meyer, a key figure in advancing the legislation, said the bills aim to ease the cost of homeownership and provide targeted relief to vulnerable residents.
The Texas Comptroller’s Office administers the exemptions, which reduce taxable property value for qualifying homeowners.
The Senate will now review the House-passed bills. If approved, the new exemptions will take effect for the current tax year.
Legislators view the property tax relief package as part of a broader effort to lower housing costs and attract new economic investment to Texas. House and Senate leaders continue to negotiate the remaining components of the plan.