Senate Backs $140K Homestead Exemption, Homeowners Could Save Hundreds

From Staff Reports

Texas homeowners could soon see more property tax relief after the state Senate unanimously passed measures to increase the homestead exemption from $100,000 to $140,000 — the largest increase in state history.

The bipartisan legislation, authored by Sen. Paul Bettencourt (R-Houston) and supported by Lt. Gov. Dan Patrick, now heads to the Texas House, where it is expected to pass. If approved, the constitutional amendment will go before voters in November 2025.

“Today, the Texas Senate delivered a win for homeowners statewide,” Senator Bettencourt said in a statement. “By passing SB 4 and SJR2, we are putting real dollars back into the pockets of Texans while ensuring our schools remain fully funded.”

Bettencourt has been an active proponent of school choice or voucher programs in Texas. He co-authored Senate Bill 2, known as the Texas Education Freedom Act, which establishes a universal Education Savings Account (ESA) program for students.

A Major Win for Homeowners

According to Bettencourt, the exemption increase will save the average Texas homeowner nearly $363, or as much as $500 per year in property taxes.

Senate Bill 4 builds on last year’s $22.7 billion property tax cut package by further easing the burden of school property taxes. In August 2023, Senate Bills 2 and 3 created a historic property tax relief package totaling $18 billion, marking the largest cut in the state’s history.

Bettencourt On Property Taxes: The Cavalry is Coming Over The Hill For Texas Homesteaders

“With today’s passage, the Texas Senate has made it clear: more property tax reduction is on the way,” Bettencourt said in a release.

“In 492 school districts, the $140,000 homestead exemption means the average homeowner will pay no school property taxes at all.”

For seniors, the relief could be even more substantial. Charles Scoma of the Texas Silver-Haired Legislature testified that with 80% of Texas seniors living on just $36,000 of annual disposable income, many could see their school property taxes eliminated entirely, Bettencourt said in the release.

What’s Next?

If the House passes the measure, Texans will vote on whether to make the exemption increase law in 2025. The bill includes a hold-harmless provision to ensure school districts receive full state funding to offset lost tax revenue. It also maintains protections for homeowners over 65 and those with disabilities.

With bipartisan support and a growing push for property tax relief across the state, the legislation is expected to move quickly through the House.