Texas Senate Approves Major Property Tax Cut for Homeowners
The Texas Senate has unanimously approved Senate Bill 4 (SB 4), a measure that would increase the state’s homestead exemption to $140,000, a move expected to provide significant property tax relief to Texas homeowners. According to the bill’s author, Senator Paul Bettencourt (R-Houston), this change could save the average Texas homeowner $363 per year on school property taxes, with overall savings approaching $500 annually when combined with tax rate compression in the Senate’s budget proposal.
Impact on Homeowners and Seniors
For many homeowners across Texas, this tax cut represents a continued effort to ease financial burdens. Notably, the measure could have an even greater impact on senior citizens. “The passage of SB 4 will see eighty to ninety percent of Texas seniors paying zero [school] property tax,” Bettencourt stated. Additionally, nearly half of the state’s 492 school districts have average home values below $140,000, meaning that many homeowners in those areas may see their maintenance and operation school property taxes eliminated entirely.
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If voters approve the measure, this will mark the fourth homestead exemption increase since 2015. Bettencourt highlighted the legislature’s commitment to tax relief, stating, “We’re now topping $1,762 in tax relief in just two sessions. It’s been a Texas-sized commitment of $51 billion since 2019, and we’re adding onto it now.”
Legislative Process and Next Steps
Following the Senate’s approval, SB 4 now moves to the Texas House of Representatives for consideration. If the bill passes both chambers, Texas voters will have the final say on the proposed homestead exemption increase through a constitutional amendment election.
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The tax relief measure comes as part of a broader effort by state lawmakers to reduce the financial strain on homeowners amid rising property values and living costs. The Texas Senate has prioritized property tax reductions and exemptions as a way to provide long-term relief to residents.
What Homeowners Should Expect
If approved, the increased homestead exemption will significantly reduce school property tax obligations for homeowners statewide. Those in lower-value home districts could see their tax bills drop to zero, while others will benefit from substantial annual savings. The measure is designed to ensure that more homeowners, particularly seniors, experience financial relief from rising property taxes.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
