A new Texas Senate proposal could save homeowners hundreds of dollars in annual school property taxes by raising the homestead exemption from $100,000 to $140,000. The $22.7 billion plan, outlined in Senate Bill 4, has strong bipartisan backing, with 29 of 31 senators in support.
If passed, Texas voters would need to approve Senate Joint Resolution 2 to make the change permanent. The state would cover school districts’ funding gaps to ensure public schools remain unaffected. A separate $3 billion provision in Senate Bill 1 could further reduce tax rates for homeowners.
Homeowners could expect to save an average of $363 annually—or nearly $500 when combined with other tax relief measures. This legislation builds on past tax cuts, including the 2023 increase from $40,000 to $100,000, which voters overwhelmingly approved.
With backing from Lt. Gov. Dan Patrick and Gov. Greg Abbott, SB 4 is a top priority this session. If approved, it would mark the largest homestead exemption in Texas history, offering significant relief to homeowners statewide.
