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Texas Senate Unanimously Approves $4B Property Tax Relief Boosting Homestead Exemptions

The measures now head to Governor Greg Abbott for signature ahead of a November 2025 voter referendum.

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A Luxury mansion pictured in River Oaks, Houston, Texas in 2023.
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Overview

  • Senate Bill 4 raises the general homestead exemption from $100,000 to $140,000 to reduce taxable home values for most Texas homeowners.
  • Senate Bill 23 increases the additional exemption for seniors and those with disabilities from $10,000 to $60,000, delivering up to $200,000 in total relief.
  • The combined package is estimated to cost Texas $4 billion over the next two years as part of a $51 billion biennium spending plan.
  • A separate proposal would lift the business property exemption from $2,500 to $125,000, lowering taxes on inventory and office assets.
  • Critics contend that the relief primarily favors homeowners and businesses and shifts the tax burden onto renters and commercial property owners.