As of September 1, 2025, a new Texas law is officially in effect that brings significant property tax relief to homeowners across the state. Senate Bill 4 (SB 4), passed unanimously in both chambers of the Texas Legislature earlier this year, increases the residence homestead exemption for school district taxes from $100,000 to $140,000. For residents in Memorial Parkway, this change could result in hundreds of dollars in annual tax savings—if they know how to claim it.

What Is SB 4 and Why Was It Passed?

SB 4 is the latest in a series of tax relief efforts aimed at reducing the financial burden on Texas homeowners amid skyrocketing property values and ongoing affordability concerns. The bill raises the portion of a home's appraised value that is exempt from school district property taxes—typically the largest portion of a Texan’s tax bill.

This legislation was made possible through a constitutional amendment proposed by the 89th Texas Legislature. Now that the change is law, it’s designed to help Texans hold onto more of their hard-earned money while preserving school district funding through a carefully structured increase in state aid.

What This Means for Homeowners in Memorial Parkway

For homeowners in Memorial Parkway, the homestead exemption increase to $140,000 could translate to substantial tax savings on school district property taxes beginning with the 2025 tax year.

Here’s how it works:

• If your home is valued at $350,000, the taxable value for school district purposes would now be $210,000 instead of $250,000.
• That’s $40,000 more in exemption than last year, which could save you $400 to $600 or more, depending on your local school tax rate.

These savings apply only to your primary residence—rental properties and vacation homes do not qualify.

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What You Need to Do

If you already have a homestead exemption on file with the Harris Central Appraisal District (HCAD) or your local appraisal district, you do not need to reapply. The new $140,000 exemption will automatically apply to qualifying properties for the 2025 tax year.

However, if you recently bought a home, moved, or haven’t applied for a homestead exemption yet, you should:

• Visit your local appraisal district website, hcad.org, and fill out the Homestead Exemption Application.
• Submit the form by April 30, 2026, to ensure you receive the full benefit for the 2025 tax year.

Keep an eye on your tax bill—it may be marked as provisional depending on the outcome of the constitutional amendment vote, which is expected on November 4, 2025.

What’s Next: The Fine Print on the November Vote

Though SB 4 is now law, the full tax break is contingent on Texas voters approving the accompanying constitutional amendment on November 4. Until then, school district tax bills will be issued as provisional, showing two potential totals:

• What your bill would be with the $140K exemption
• What your bill would be without it

If the amendment is approved, the lower tax total becomes final. If it fails, you may receive a supplemental tax bill in December for the difference.

School Districts Will Still Be Funded

While this is great news for homeowners, local schools won’t be left scrambling. SB 4 includes mechanisms to ensure school districts continue to receive funding through state aid designed to backfill the loss in local property tax revenue. The legislation carefully phases in new state funding formulas to keep districts whole—especially in fast-growing areas like Memorial Parkway.

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How to Stay Informed

This change is just one part of a broader push for tax reform and education funding restructuring in Texas. Homeowners are encouraged to:

• Follow local appraisal district announcements
• Attend school board meetings for updates on how funding shifts may affect programs
• Vote in the November 4, 2025 constitutional amendment election

In Summary

• What changed: Homestead exemption increased from $100,000 to $140,000 for school district property taxes.
• Who benefits: Texas homeowners with a filed homestead exemption.
• What to do: No action if you already filed—otherwise, file with your appraisal district by April 30, 2026.
• What to watch: November 4 vote on the constitutional amendment will finalize the tax savings.
• How schools are protected: The state will provide backfill funding to cover lost local revenue.

For more community updates and guidance on homestead exemptions, property tax reform, and local school funding, stay connected with My Neighborhood News.

By Tiffany Krenek, My Neighborhood News 

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.