Texas Lt. Gov. Dan Patrick is pushing to dramatically reduce school property taxes, with a bold vision to eliminate them for most seniors this session.

“My goal is to get rid of it, this session, for almost every senior in the state,” he said, referring to school property taxes. “And eventually every homeowner.”

In a new video, Patrick argues that increasing the homestead exemption offers bigger, more secure savings than compression, and he’s been in talks with the Speaker of the Texas House to raise the homestead exemption for seniors from $150,000 to $200,000.

In the video, Patrick compares two methods to lower school property taxes, offering a clear comparison:

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Compression: This lowers the property tax rate for everyone by having the state government pay more to fund schools, reducing the amount citizens pay. School districts rely on property taxes to cover daily expenses, but with compression, which is set in state law, the state uses its own funds — like sales tax revenue — to cover a larger share of school costs. This allows districts to lower their tax rate, meaning all property owners, including homeowners and businesses, pay less. Patrick notes that for every billion dollars invested in compression, the average homeowner saves just $30.

Homestead Exemption: This reduces the taxable value of a homeowner’s primary residence, directly lowering their tax bill. It only applies to homeowners, not renters, and is enshrined in the Texas Constitution, making it a permanent benefit. Patrick highlights that for every billion dollars invested in the homestead exemption, the average homeowner saves $130 — over four times the savings from compression.

Patrick calls compression a “roll of the dice” because it’s only in state law, meaning future legislatures could reverse it if state funding dries up. In contrast, he emphasizes that the homestead exemption’s constitutional protection makes it a more secure form of relief.

While the Senate has agreed to include some compression in its tax relief plan, Patrick stresses that the homestead exemption is the better path, paired with a smaller dose of compression for broader relief.

Patrick’s push for the homestead exemption includes a significant proposal for seniors. He shared that he’s been discussing with the Speaker a plan to raise the homestead exemption for seniors from $150,000 to $200,000.

For the average senior in Texas, whose home is often valued at or below $200,000 — especially in smaller cities or rural areas — this increase would reduce their taxable value to zero, effectively eliminating their school property taxes.

For example, a senior with a $200,000 home would owe nothing, while one with a $250,000 home would only pay taxes on $50,000 of its value.

Patrick’s video ties into recent legislative efforts, including Senate Bill 4, which passed the Texas Senate in February 2025 with a unanimous vote.

The bill increases the homestead exemption to $140,000 for most homeowners and $150,000 for seniors, building on the $100,000 exemption made permanent in 2023.

If approved by the Texas House and voters in a November 2025 constitutional amendment election, this change would apply retroactively to 2025 tax bills, offering lasting savings.

The proposed $200,000 exemption for seniors would likely require additional legislative action, but Patrick’s discussions with the Speaker signal strong momentum for this expanded relief.

Property taxes are a perennial issue in Texas, where they fund public schools and local governments in the absence of a state income tax.

Patrick’s comparison of $30 in savings per billion for compression versus $130 per billion for the homestead exemption underscores why he’s prioritizing the latter — it delivers more bang for the buck, especially for homeowners.

The constitutional protection of the homestead exemption adds another layer of appeal, ensuring that these savings can’t be undone by future legislatures.

However, the debate over compression versus homestead exemptions — and Patrick’s goal to eventually eliminate school taxes for all homeowners — highlights a broader challenge: balancing relief for homeowners with fairness for all taxpayers and the need to fund education.

As the Texas Legislature continues its work, all eyes will be on whether Senate Bill 4 becomes law and if Patrick’s vision for a $200,000 exemption for seniors comes to fruition this session.

For now, his video provides a clear case for the homestead exemption, inviting Texans to weigh in on the best path forward.