The Senate Committee on Local Government has unanimously approved measures to increase the homestead exemption, allowing Texas homeowners to write off more property value before assessment. Houston Senator and committee chair Paul Bettencourt authored SJR 2 and its enabling legislation SB 4, which aim to provide savings amid rising costs. "When you’ve got inflation baked in everywhere, the one place it’s not baked into is Texas’ ISD property tax bill," Bettencourt stated. "That’s a big, big advantage for homeowners. With the passage of this bill, additional help is on the way."
The proposal seeks to raise the homestead exemption to $140,000, potentially saving an average Texas homeowner about $363 annually in property taxes. Since 2015, when the exemption was $15,000, it has been increased several times by legislative action.
Bettencourt's office estimates that combined with other tax rate adjustments in the state budget's Senate version, homeowners could save nearly $500 annually. The total tax relief since 2019 could reach $51 billion according to Bettencourt. He emphasized that the homestead exemption is an efficient method for delivering tax relief.
Homeowners aged 65 or older would be eligible for an additional $10,000 exemption. Bettencourt noted significant reductions in senior citizens' tax burdens over recent years: “We have many over-65s in the state that are now paying zero tax as a result.”
Before 2022, seniors had their rates frozen without reduction options; however, a voter-approved measure now allows reductions if legislature cuts rates or raises exemptions.
The bill includes a hold harmless provision ensuring state compensation for any revenue loss by school districts due to these changes. Previous sessions' efforts have cost around $32 billion.
Governor Abbott declared property tax cuts an emergency issue on February 2nd during his State of the State Address—enabling swift passage within 60 days of session start—with broad support from senators indicating likely approval soon.
If passed by both chambers of legislature—and contingent upon voter approval—the proposed increase will appear as a question on November's general election ballot where similar past measures received overwhelming support.