Owning a home in Texas comes with property taxes, which are often a major expense for homeowners. Many people struggle to afford their homes because of rising taxes and insurance costs.
Even if property owners vote against tax increases, home values determined by the appraisal district continue to rise, leading to higher property taxes.
Unlike some states, Texas does not have a state property tax. Instead, property taxes are set by local governments, including cities and counties. However, Texas offers homestead exemptions to help homeowners lower their tax burden.
Understanding Homestead Exemptions
A homestead exemption reduces the taxable value of a home. According to the Texas Comptroller, this exemption allows a portion of a home’s value to be tax-free.
In 2023, the homestead exemption for school taxes was increased from $40,000 to $100,000. This means that if a home is valued at $400,000, the owner only pays school taxes on $300,000.
New Bill to Increase Exemptions
A new bill could lower property taxes even further. State Senator Paul Bettencourt filed Senate Bill 4 (SB 4) on February 7, 2024.
If passed, this bill would raise the homestead exemption to $140,000. Homeowners over 65 or those with disabilities would receive an even higher exemption of $150,000.
What Happens Next?
For SB 4 to become law, it must go through several steps:
- Committee Review – A Senate committee reviews the bill.
- Senate Vote – If approved by the committee, the full Senate votes on it.
- House Vote – If it passes in the Senate, the Texas House of Representatives must also approve it.
- Governor’s Approval – If both chambers pass the bill, it goes to the governor for a final signature.
Strong Support in the Senate
SB 4 has 29 sponsors in the Senate, which is a strong sign of support. Since the Texas Senate has 31 members, this increases the chances of the bill passing. If approved, many Texas homeowners could see lower property tax bills in the near future.
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