AUSTIN, Texas — The Texas Senate on Thursday unanimously voted for a proposal that would give homeowners in the state a larger break on their property tax bills. 

What You Need To Know

  • The Senate voted 30-0 to pass the measure, just two days after the bill passed through committee

  • Senate Bill 4 would increase the current homestead exemption on property taxes that go toward funding school districts

  • Currently, homeowners who meet the homestead exemption requirements can receive $100,000 off their home’s appraised value. Senate Bill 4 wants to raise that exemption to $140,000 and $150,000 for seniors

  • The bill now moves to the Texas House for consideration and, if passed, would then move to the governor's desk. But, Texas voters would need to approve the tax break in the next election

In a show of bipartisanship, the Senate voted 30-0 to pass the measure, just two days after the bill passed through committee.

Senate Bill 4, which was included in Lt. Gov. Dan Patrick’s priorities for this year’s legislative session, would increase the current homestead exemption on property taxes that go toward funding school districts.  

Schools across the state collect property taxes from residences in their districts. It is the primary revenue source for many schools, and the tax rate is set by each district and approved by voters. 

Currently, homeowners who meet the homestead exemption requirements can receive $100,000 off their home’s appraised value, effectively lowering the amount of school taxes paid. 

Senate Bill 4 wants to raise that exemption to $140,000 and $150,000 for seniors. 

According to the Texas Comptroller’s office, the homestead exemption applies to residences that meet the state’s definition of a “homestead,” and Texans can apply for the exemption on a property they have an ownership interest in and is their principal residence. 

The bill now moves to the Texas House for consideration. 

If passed, it would head to Gov. Greg Abbott’s desk for approval, but Texas voters would still have to approve the measure in the next statewide election. In order to raise the homestead exemption, voters would have to amend the Texas Constitution. 

Voters previously approved raising the homestead exemption back in 2023 from $40,000 to what it is currently. The ballot measure passed with 83% of the vote.  

The Texas Senate has also set aside $3 billion in the state budget to cover the potential loss in revenue from the increased exemption. 

According to the Tax Foundation, Texas has some of the highest property taxes in the country. This is larger because of the lack of a state income tax, which other states rely on to fund public services.

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