Overview

• The Texas Legislature has reached a bipartisan agreement on property tax relief, including Senate Bills 4 and 23 and House Bill 9, which are now advancing through the legislative process.
• Senate Bill 4 proposes raising the general homestead exemption from $100,000 to $140,000, potentially saving homeowners an average of $363 annually.
• Senate Bill 23 would increase the additional homestead exemption for seniors and disabled homeowners from $10,000 to $60,000, providing a total exemption of $200,000 for these groups.
• House Bill 9 aims to exempt up to $125,000 of business inventory from local property taxes, reducing costs for commercial property owners.
• The $51 billion allocated in the 2026–27 state budget to fund these tax cuts has sparked concerns about long-term fiscal sustainability, with final legislative votes and Governor Abbott's approval still required.