The Texas Senate unanimously passed Senate Bill 4 and Senate Joint Resolution 2, raising the homestead exemption from $100,000 to $140,000 - the largest exemption increase in state history.
“Today, the Texas Senate delivered a win for homeowners statewide. By passing SB 4 and SJR 2, we are putting real dollars back into the pockets of Texans while ensuring our schools remain fully funded,” Sen Paul Bettencourt said. “The average homeowner will see an estimated annual savings of nearly $363, but wait there’s more, as nearly $500 of help is on the way!”
The Senate’s approval of these measures follows the largest property tax reduction in U.S. history, $22.7 billion, which was approved by 83% of Texas voters in November 2023. Senate Bill 4 builds upon this success by further reducing school property taxes and ensuring long-term relief for Texas homeowners. Senate Bill 4 works in conjunction with Senate Bill 1, the General Appropriations Act, which provides 6.8 pennies of school district tax rate compression. This compression will result in an additional $133.13 in savings for the average homestead property owner, for a total of $496.57.
SB 4 and SJR 2 now head to the Texas House, where they are expected to receive broad bipartisan support. If passed, Texans will have the opportunity to vote on the constitutional amendment in November 2025, allowing them to secure longterm tax relief for generations to come.
“In 492 school districts, the 140,000 homestead exemption will mean the average homeowners will pay no school property taxes in 49% of state schools districts.” Bettencourt said. “With today’s passage, the Texas Senate has made it clear: more property tax reduction is on the way!”
SB 4includes a hold-harmless provision, guaranteeing that the state will fully cover any ISD funding shortfalls resulting from the exemption increase. Senate Bill 4 maintains its protections for over-65 and disabled homestead exemption owners.
