On June 16, 2025, Texas Governor Greg Abbott signed three property tax relief bills into law: Senate Bill 4, Senate Bill 23, and House Bill 9. These bills referred proposed constitutional amendments to the November 4, 2025 ballot.
If Texas voters approve these measures (appearing as Propositions 13, 11, and 9), they will provide significant property tax relief for homeowners, seniors, people with disabilities, and small businesses.
Texas Property Tax Relief 2025 Summary
Here's what will happen if voters approve the proposed amendments on November 4, 2025:
Residence homestead exemption (Proposition 13): Goes up from $100,000 to $140,000 (retroactive to 2025 if approved)
Seniors and individuals with disabilities (Proposition 11): Exemption for Texans over 65 and those with disabilities increases from $10,000 to $60,000 ($200,000 total if Prop 13 and Prop 11 pass)
Business personal property (Proposition 9): Exemption increases from $2,500 to $125,000
Five-year homestead verification rule: Remains in effect, requiring Texas county appraisal districts to review property owners’ eligibility for homestead exemptions every five years.
Note: If voters approve the homestead and senior/disability exemptions on November 4, they'll be retroactively applied to 2025 property tax bills.
How Does the Relief Bill Affect Exemptions for Homeowners?
To calculate your property taxes, your local government multiplies your home’s assessed value by the local tax rate. If you qualify and apply for an exemption, the exemption amount is subtracted from your property’s assessed value, which in turn lowers your Texas tax bill.
The state has several property tax exemptions that have significantly increased under the 2025 Texas property tax relief laws.
Residence Homestead Exemption
Currently, the general residence homestead exemption is $100,000. If voters approve Proposition 13, Senate Bill 4 will raise the amount to $140,000.
This increase saves each homeowner an average of $484 per year on property taxes, according to the Texas Senate. To apply for the residence homestead exemption and enjoy these savings:
Your home must be your primary residence
You must have an ownership interest in the property
You shouldn’t claim a residential exemption on another property in Texas or elsewhere in the country.
Note: The five-year homestead verification rule, which took effect in 2023, is still in place. It requires county appraisal districts to review property owners’ eligibility for homestead exemptions every five years. In other words, you’ll need to reapply at the end of each five-year cycle to keep your exemption.
Seniors or Disabled Persons Exemption
The exemption for seniors and people with disabilities is in addition to the standard residence homestead exemption. Currently, it is $10,000. If Proposition 11 passes, Senate Bill 23 will boost it to $60,000.
If approved, seniors and homeowners with disabilities will receive a total of $200,000 in residence homestead exemption, saving them approximately $907.87 per year on property taxes. However, they must meet eligibility requirements.
To qualify for a senior exemption, you must:
Be age 65 or older
Have an ownership interest in the property on which you’re claiming an exemption
Live on the property as your primary residence
Property Tax Freeze Benefit
Furthermore, once you qualify for the senior exemption, your school property taxes are frozen at the amount you paid the year your exemption was approved. The freeze prevents your school property taxes from increasing, even if appraisal values or tax rates go up.
To qualify for the disabled persons exemption, you must:
Provide proof of disability
Own the house and live in it as your primary residence
Disabled Veterans Exemption
The Texas property tax relief bills that the governor signed in June 2025 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 based on 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 |
What Does Tax Relief Do for Businesses?
Organizations in Texas pay taxes on business personal property (BPPs), such as inventory, furniture, cars, and office equipment. Tax rates are the same as those for real estate in the state.
The Texas tax relief bill (House Bill 9), if passed, increases the business personal property tax exemption from $2,500 to $125,000. According to the Texas Senate, this exemption boost will save small business owners an average of $2,500.
Your 3-Step Checklist for Maximizing 2026 Tax Savings
Follow these steps to maximize your tax savings:
1. Verify Your Exemptions
Log in to your county appraisal district (CAD) website and confirm that your exemptions, such as the homestead or senior exemption, are correctly applied before finalizing your tax bill. Catching errors early ensures you don’t miss an opportunity to reduce your property taxes.
2. Review Your Appraisal
Use your CAD’s property search tool to double-check your property’s appraised value. Does it reflect the real market value and your property’s actual condition? Accuracy here directly impacts your tax bill.
3. Plan for Your 2026 Protest
If your property’s appraised value seems too high, filing an appeal is the only way to challenge the assessed values and protest your tax bill. A successful appeal on top of exemptions ensures you enjoy the maximum property tax relief in Texas.
The 2025 filing deadline (usually May 15) has passed. To prepare for the 2026 tax appeal, gather evidence that proves your property is overvalued, which may include:
Sale prices of similar properties in your area
Photos that show major damage to your property
Professional appraisals from an independent, licensed appraiser
Get More Property Tax Savings With Ownwell
The new property tax relief laws in Texas significantly increase exemption amounts, which helps you save more on property taxes. However, the exemptions are not automatic — you must apply for those you qualify for.
Ownwell can help homeowners apply for homestead exemptions for the current year and for up to two years retroactively across many U.S. states. We can also handle your tax appeal from start to finish, saving you time and effort.
Don’t pay more in property taxes than necessary. Appeal your property’s appraised value to enjoy more savings on top of the exemptions.
