Property taxes in Texas: New law raises homestead exemptions to offer property tax relief, but voters must approve constitutional amendment this November to make school savings permanent

Austin, Texas – For a lot of people who own homes in Texas, the steady climb in property taxes has felt like a never-ending burden. Every year, appraisal notices come with increased values, and with those prices come larger tax payments, even if the home hasn’t been upgraded. After years of frustration and rising costs, some long-awaited help may finally be on the way.

Governor Greg Abbott signed Senate Bill 4 into law on June 16, 2025. This was a big win for property owners. The new law raises the homestead exemption for most homeowners to $140,000. That exemption goes up even more for seniors and Texans with disabilities, to $150,000. This means that a bigger part of a home’s value won’t be taxed anymore, which is a big help in a state where property taxes have become a big problem.

But the alterations don’t stop there. The governor’s signing made SB 4 law right away, but voters still need to approve a related constitutional amendment called Senate Joint Resolution 2. The school-district homestead exemption would go from $100,000 to $140,000 under SJR 2. The general election on November 4, 2025, will let voters have their say on this proposal.

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If the legislation succeeds, the higher exemption will be in effect for the 2025 tax year. Some individuals are worried that schools won’t get enough money because property taxes would go down, but the law says that the state will make up the difference. Lawmakers have promised to use state money to make up the difference, so public schools won’t have to worry about running out of money because of the higher exemptions.

For a lot of families, this new law and the vote coming up are more than just policy; they might be a lifeline. Some people who have been in the area for a long time have had to leave their houses because property taxes have gone up in recent years. Others have had trouble paying their bills even if they possess small homes. Homeowners may save hundreds of dollars a year if the exemption were bigger.

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Texas residents are being advised to pay special attention to SJR 2 as the November election gets closer. Voting could help them keep more money in their pockets, which has become harder to do as home prices rise across the state.