Governor Greg Abbott is scheduled to sign a $10 billion property tax relief package Monday.
The legislation comprising Senate Bills 4 and 23 and House Bill 9, will be officially signed at 3 p.m. today.
The three-bill package aims to cut property taxes for a wide range of Texans, including homeowners, senior citizens, disabled residents, and small business owners.
However, before the reliefs can take effect, they must first be approved by voters in a statewide amendment election this November.
The property tax relief plan, authored by State Sen. Paul Bettencourt and Rep. Morgan Meyer, builds on previous Republican-led tax cut efforts across Texas.
According to a press release from The Texas Senate, the newly proposed changes include:
- SB 4: Increases the school district homestead exemption from $100,000 to $140,000. Average projected savings for homeowners is allegedly listed at $484 per year.
- SB 23: Boosts exemptions for Texans aged 65 and older, as well as those with disabilities. The total exemption under this plan would reportedly reach $200,000, with an estimated average annual savings of $950 for over 2 million qualifying homeowners.
- HB 9: Raises the business personal property exemption to $125,000, potentially offering average yearly savings of $2,500 for small business owners.
Lt. Gov. Dan Patrick has voiced his strong support for the bipartisan backing behind the bills.
“The Senators and our House colleagues from both sides understand when increased homestead exemption and more compression are combined, Texans receive maximum tax relief benefit,” Patrick said in a recent press conference.
According to Patrick, when added to the $22.7 billion property tax reduction passed during the 2023 session, the average homeowner saw a tax reduction of $1,762.
Sen. Bettencourt called the package “life-changing” for many Texans and said it would empower people to stay in their homes, “age in place,” and expand their businesses.
“Texans have approved increased homestead exemptions in 2015, 2022, and 2023. This bill package is no different, this will help millions of Texans stay in their homes, let seniors age in place, and allow others to grow their businesses for generations to come,” Bettencourt added.
Although Abbott’s signature will “codify” the bills into law, they will only take effect if voters sign off in the upcoming general election.
If approved, the package would be one of the largest property tax relief efforts in state history.
Texans will vote on the proposed constitutional amendments in November 2025. If passed, the changes could begin effecting 2026 tax bills, with homeowners and business owners seeing relief soon after.