Texas Property Tax Relief: What The New 2025 Homestead Exemptions Mean
Texas property tax relief is now law. On June 16, 2025, Gov. Greg Abbott signed three property tax relief bills: Senate Bill 4, Senate Bill 23, and House Bill 9. They appeared on the November 4, 2025 ballot as constitutional amendments.
Texas voters approved these measures as Propositions 13, 11, and 9. The higher exemptions are in effect and retroactive to the 2025 tax year, delivering real savings to homeowners, seniors, people with disabilities, and small businesses.
Below, we break down what changed and how to capture every dollar you're owed at Ownwell.
Texas Property Tax Relief 2025 Summary
Here's what changed now that voters approved these amendments on November 4, 2025:
Residence homestead exemption (Proposition 13): Rose from $100,000 to $140,000, retroactive to 2025.
Seniors and individuals with disabilities (Proposition 11): The exemption for Texans 65 or older and those with disabilities rose from $10,000 to $60,000, for $200,000 total once Prop 13 and Prop 11 are combined.
Business personal property (Proposition 9): The exemption rose from $2,500 to as much as $125,000 on a business's tangible personal property (inventory and equipment) across all local property taxes.
Five-year homestead verification rule: Still in effect, requiring county appraisal districts to review homestead eligibility every five years.
Because voters approved the homestead and senior or disability exemptions, they apply retroactively to your 2025 tax bill.
How Does the Relief Affect Exemptions for Homeowners?
To calculate your tax bill, your county multiplies your home's assessed value by the local tax rate. When you qualify for an exemption, that amount comes off your assessed value, which lowers what you owe the county.
Here's how the new $140,000 homestead exemption plays out on a typical Texas home. Statewide, the median home has an assessed value of $258,851 and a median effective tax rate of 1.48%.
Line Item | Amount |
|---|---|
Assessed value | $258,851 |
Homestead exemption | −$140,000 |
Taxable value | $118,851 |
Effective tax rate | 1.48% |
Annual bill before exemption | $3,831 |
Annual bill after exemption | $1,759 |
Annual savings | $2,072 |
Your actual rate varies by county, but the math is the same: A bigger exemption means a smaller taxable value and a lower bill.
Residence Homestead Exemption
The general residence homestead exemption was $100,000. Because voters approved Proposition 13 (originally Senate Bill 4), it's now $140,000.
This increase saves each homeowner an average of $484 per year, according to the Texas Senate. To qualify for the residence homestead exemption:
Your home must be your primary residence.
You must have an ownership interest in the property.
You can't claim a residential exemption on another property in Texas or elsewhere.
Note: The five-year homestead verification rule, which took effect in 2023, is still in place. County appraisal districts review homestead eligibility once every five years, so you'll need to reapply at the end of each cycle to keep your exemption.
Seniors or Disabled Persons Exemption
The exemption for seniors and people with disabilities is in addition to the standard homestead exemption. It was $10,000. Since Proposition 11 passed (originally Senate Bill 23), it is now $60,000.
Combined with the general homestead exemption, seniors and homeowners with disabilities receive $200,000 in total residence homestead exemptions, saving them approximately $907.87 per year. Eligibility requirements still apply.
To qualify for a senior exemption, you must:
Be age 65 or older.
Have an ownership interest in the property you're claiming.
Live on the property as your primary residence.
To qualify for the disabled persons exemption, you must:
Meet the Social Security Administration's definition of disabled.
Provide proof of disability.
Own the home and live in it as your primary residence.
Note that you can't combine the senior and disabled persons exemptions.
Property Tax Freeze Benefit
Once you qualify for the over-65 exemption, your school district taxes are frozen at the amount you paid the year the exemption was approved. Think of it as a property tax ceiling: your school taxes can't rise even if your appraised value or the tax rate goes up.
Homeowners who are 65 or older or disabled can also defer collection of the taxes on their homestead under Texas Tax Code §33.06. Deferral pauses collection; it doesn't erase the bill, and interest still accrues.
So what age do you stop paying property taxes in Texas? You don't. The freeze caps your school taxes, and deferral can postpone them, but the obligation is never fully eliminated.
Disabled Veterans Exemption
The 2025 relief bills don't change disabled veterans exemptions. Qualification requirements and exemption amounts, based on disability ratings assigned by the Department of Veterans Affairs, are still the same.
To receive the disabled veteran exemption in Texas, you must:
Be a U.S. military veteran with a service-connected disability as classified by Veterans Affairs or your branch of service.
Be a Texas resident.
Apply the exemption to only one property.
Have a disability rating of 10% or greater.
Note: Surviving spouses or unmarried children (under 18) of a disabled veteran or a service member killed in action also qualify.
The following table shows disabled veterans exemptions in Texas by disability rating:
Disability Rating | Property Tax Exemption |
|---|---|
10% to 29% | $5,000 |
30% to 49% | $7,500 |
50% to 69% | $10,000 |
70% to 99% | $12,000 |
100% | 100% of your property taxes |
Unsure Which Exemptions You Qualify For?
What Does Tax Relief Do for Businesses?
Businesses in Texas pay taxes on business personal property (BPP), such as inventory, furniture, vehicles, and office equipment. Rates match those for real estate in the state.
House Bill 9 (Proposition 9) raised the business personal property exemption from $2,500 to as much as $125,000. According to the Texas Senate, this boost saves small business owners an average of $2,500.
Your 3-Step Checklist for Maximizing 2026 Tax Savings
Follow these steps to maximize your savings:
Verify Your Exemptions
Log in to your county appraisal district (CAD) website and confirm your exemptions, such as the homestead or senior exemption, are correctly applied before your bill is finalized. Catching errors early ensures you don't miss a chance to reduce your property taxes.
Review Your Appraisal
Use your CAD's property search tool to double-check your appraised value. Does it reflect real market value and your property's actual condition? Accuracy here directly affects your tax bill.
Plan for Your 2026 Protest
If your appraised value looks too high, filing a property tax protest is the only way to challenge it. A successful protest, along with your exemptions, achieves maximum relief.
The stakes are real: Texas homeowners left $1.2 billion in potential savings unclaimed in 2025 by not protesting.
The 2025 filing deadline (usually May 15) has passed. To prepare for your 2026 protest, gather evidence that your property is overvalued, which may include:
Sale prices of similar properties in your area.
Photos showing major damage to your property.
A professional appraisal from an independent, licensed appraiser.
Get More Property Tax Savings With Ownwell
The new relief laws significantly increase exemption amounts, which helps you save more. But the exemptions are not automatic. You must apply for the ones you qualify for.
Ownwell can help homeowners apply for the general and senior homestead exemptions for the current year and up to two years retroactively across many states. We also handle your property tax protest from start to finish — saving you time and effort.
Don't pay more than you owe the county. Protest your property's appraised value to stack more savings on top of your exemptions.
Frequently Asked Questions
How Much Does a Homestead Exemption Reduce Your Taxes in Texas?
The $140,000 general homestead exemption comes off your home's assessed value before the rate applies. On a $258,851 home taxed at 1.48%, that drops the bill from about $3,831 to roughly $1,759.
What Is the Property Tax Exemption for Over 65 in Texas?
Homeowners 65 or older get an additional $60,000 school exemption on top of the general homestead exemption, for $200,000 combined.
What Age Do You Stop Paying Property Taxes in Texas?
There's no age at which you stop. At 65 or older, your school taxes are frozen, and you can defer collection under Texas Tax Code §33.06, but the taxes are never fully eliminated.
When Does the Texas Property Tax Relief Start?
Voters approved Propositions 13, 11, and 9 on November 4, 2025, and the higher exemptions apply retroactively to the 2025 tax year.
Who Doesn't Qualify for a Homestead Exemption?
You can't claim it on a property that isn't your primary residence, one you don't have an ownership interest in, or when you're already claiming a homestead exemption on another property.
