On Feb. 13, 2025, the Texas Senate took a groundbreaking step to lighten the financial load for homeowners, unanimously backing a proposal that could deliver billions in property tax relief. This game-changing move aims to provide much-needed respite to residents across the state, signaling a significant shift in the approach to managing Texas’ notoriously high property taxes. But that doesn’t mean the bill will go into law.
Senate Bill 4, the Texas Senate's flagship property tax-cut initiative, seeks to raise the state’s homestead exemption for school district taxes to a substantial $140,000 — up from the current $100,000. Homeowners will have a larger portion of their property exempted from school taxes, offering significant savings on their property tax bills and providing much-needed relief in a state notorious for its high property taxes.
What This Means For Texas Residents
State Senator Paul Bettencourt, SB’s author, the average homeowner will see an estimated annual savings of nearly $363 “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," said Senator Bettencourt in an official statement.
The bill promises to bring significant tax reductions for homeowners across the state. In fact, nearly half of Texas school districts have average home values under $140,000, meaning many homeowners would see their property taxes for public schools wiped out entirely.
Additionally, the proposal would provide tax relief to at least 80% of Texans aged 65 and older, who would be exempt from paying these taxes if the exemption is enacted, according to estimates from the Texas Silver-Haired Legislature, an advocacy group for older Texans.
“I estimate 80-90% of Texas seniors will pay no property taxes at all,” Charles Scoma of the Texas Silver-Haired Legislature said during the testimony.
What’s Next: The Texas Constitution Must Be Amended
Before getting too excited, there are still more votes to be cast.
After receiving unanimous approval from the Senate, SB 4 and SJR 2 now move to the Texas House, where they are expected to receive strong bipartisan support. If passed, Texans will have the opportunity to vote on the constitutional amendment in November 2025, which could provide long-term tax relief for future generations.
Ultimately, Texas voters will have the final say on whether to approve the tax cut, as adjusting the homestead exemption requires an amendment to the Texas Constitution.
How SB 4 Builds On Past Bills
The Senate's approval of these measures follows the passage of SB 2, which provided the largest property tax reduction in U.S. history — $22.7 billion — and was overwhelmingly supported by 83% of Texas voters in November 2023. Senate Bill 4 builds on this success by further reducing school property taxes and ensuring long-term relief for Texas homeowners.
It works alongside SB 1, the General Appropriations Act, authored by Finance Chair Huffman, which includes a 6.8-cent reduction in school district tax rates. This reduction will save the average homestead property owner an additional $133.13, bringing their total savings to $496.57.
“Based on the unanimous 30-0 vote, it is clear Senators from both sides of the aisle understand that when an increased Homestead Exemption and more compression are combined, homeowners receive maximum tax relief benefit.” Lieutenant Governor of Texas Dan Patrick said in an official statement.
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