Texas Senate Committee Advances Bill to Increase Homestead Exemption

The Senate Committee on Local Government unanimously approved measures on Tuesday, February 11th, to further increase the homestead exemption, raising the amount of property value a homeowner can write off before assessment. The legislation, authored by Houston Senator and committee chair Paul Bettencourt, would increase the exemption from $100,000 to $140,000.

“With the passage of this bill, additional help is on the way,” said Bettencourt. “When you’ve got inflation baked in everywhere, the one place it’s not baked into is Texas’ ISD property tax bill.”

The homestead exemption has steadily increased from $15,000 in 2015 to $100,000 last session. Bettencourt’s office estimates that the latest proposal, combined with further school property tax rate reductions, could save the average homeowner nearly $500 annually. Since 2019, the legislature has passed $51 billion in tax relief.

For homeowners aged 65 and older, the exemption would rise to $150,000. Bettencourt noted that many senior citizens now pay little to no school taxes due to previous legislative actions and a 2022 voter-approved measure allowing reductions in frozen tax rates when property tax rates decrease.

The bill includes a hold harmless provision ensuring school districts receive state funding to offset lost revenue. Governor Greg Abbott designated property tax relief as an emergency item in his February 2 State of the State Address, allowing for swift legislative action.

With 28 of 30 senators co-sponsoring the measure, the bill is expected to pass the full Senate in the coming days. If approved by both chambers, Texas voters will decide on the increased exemption in the November general election. Similar past ballot measures have passed with over 80% support.