Overview

• Senate Bill 4 raises the school district homestead exemption from $100,000 to $140,000, delivering an average annual saving of $484 for homeowners
• Senate Bill 23 increases the exemption for Texans aged 65 and older or with disabilities from $10,000 to $60,000, resulting in combined relief of $200,000 and more than $950 in yearly savings for qualifying homeowners
• House Bill 9 expands the business personal property tax exemption from $2,500 to $125,000, potentially saving small business owners about $2,500 annually
• Budget analysts estimate the new exemptions will reduce local tax revenues by roughly $3.5 billion, requiring the state to adjust its funding to maintain public services
• The package builds on Governor Abbott’s 2023 $18 billion property tax cut and reflects his broader push for limits on local property tax rate increases