For Texans struggling to buy their first house or remain in a home they already own, property taxes present an expense that does not end when the mortgage does. With the next legislative session approaching, a consequential question is taking shape: Should Texas exempt $200,000 of every qualifying primary residence from school property taxes?
Texas does not currently offer that amount to every homeowner.
The standard school-district homestead exemption stands at $140,000. Qualifying homeowners age 65 or older and homeowners with qualifying disabilities can receive another $60,000, bringing their combined school exemption to $200,000.
The Texas comptroller explains the rules.
Those exemptions reduce the value that school districts tax. They do not subtract $140,000 or $200,000 directly from a tax bill, and they do not automatically eliminate city, county or other local property taxes.
How Much Could A $200,000 Exemption Save?
Consider a qualifying $300,000 homestead with no other school-tax adjustments. Under the existing $140,000 exemption, the owner pays school taxes on $160,000. Raising the general exemption to $200,000 would reduce that taxable amount to $100,000. At an illustrative school tax rate of $1 per $100 of value, the difference equals $600 a year, or $50 a month. The actual result would vary with the home’s taxable value and the local school tax rate.
The latest increase took effect after voters approved constitutional amendments in November 2025. The standard exemption rose from $100,000 to $140,000; the additional exemption for eligible seniors and disabled homeowners increased to $60,000. The comptroller confirmed both changes in January 2026.
What Texas Leaders Have Proposed
Lt. Gov. Dan Patrick unveiled “Operation Double Nickel” on December 9, 2025. He proposed increasing the school homestead exemption to $180,000 for homeowners under 55 and $240,000 for qualifying homeowners 55 and older, while lowering the age for the school property tax freeze from 65 to 55. Patrick reiterated those priorities in a March 27, 2026, statement ahead of the 2027 Legislature. The proposal does not provide benefits homeowners can claim today.
Patrick’s proposed amounts differ from a straightforward $200,000 exemption for all eligible primary residences. A statewide $200,000 general exemption remains a policy option, not an enacted benefit or a position that the named lawmakers have formally adopted.
Where Republicans And Democrats Agree
The last major school-tax exemption expansion attracted support from both parties. All 31 Texas senators, including 20 Republicans and 11 Democrats, voted for the 2025 measures, according to the Texas Senate’s official account. State Sen. Paul Bettencourt (R-District 7) authored the Senate bills.
State Sen. Carol Alvarado (D-District 6) and state Sen. Royce West (D-District 23), whose district includes part of Dallas, described their bipartisan cooperation favorably during a May 29, 2025, Senate news conference. State Sen. Angela Paxton (R-District 8), who represents a North Texas district, linked the relief to opportunities for younger Texans to own homes. Their support for the 2025 measures does not establish support for the specific $200,000 general exemption now under discussion.
The central disagreement is not simply whether Texans need relief, but how much relief to provide, who should qualify and how the state should cover the continuing cost.
Why Young Homebuyers Have A Stake
Texas A&M University’s Texas Real Estate Research Center placed the statewide median home sales price at $339,000 in July 2026, unchanged from a year earlier. Its September housing report also described elevated mortgage rates as a continuing obstacle for buyers. Dallas-Fort Worth home prices declined about 0.2% year over year in July, according to the center.
Homebuyers must budget for mortgage principal, interest, insurance and property taxes. Even after paying off a mortgage, an owner continues to owe applicable annual property taxes; delinquency can ultimately result in a forced tax sale under state law.
Gov. Greg Abbott expressed the frustration in a July 13, 2023, statement on property tax legislation, saying Texans want to “own their property—not rent it from the government.”
A larger homestead exemption could lower recurring school taxes for eligible first-time buyers. It would not reduce the mortgage principal or down payment. Nor would renters receive that exemption on a home they do not own.
Who Pays For The Tax Cut?
For Texas homeowners, meaningful property tax relief raises a fundamental question: How much should families have to pay the government each year simply to remain in homes they already own?
Increasing the homestead exemption would reduce the taxable value of qualifying primary residences, allowing homeowners to keep more of the money they are earning. However, because school districts rely heavily on property taxes, lawmakers must determine how to maintain school funding without shifting the burden to other taxpayers.
That challenge also presents an opportunity for lawmakers to examine government spending, establish clearer budget priorities and pursue lasting tax reform rather than simply replacing one taxpayer obligation with another.
The bipartisan 2025 vote demonstrated broad support for easing homeowners’ tax burdens. The next legislative debate will determine how far Texas lawmakers are willing to go, whether through a $180,000, $200,000 or $240,000 exemption, and how they intend to pay for that relief without increasing costs elsewhere.
What Happens Next And What Homeowners Can Do
The 90th Texas Legislature convenes January 12, 2027. Legislators can begin prefiling bills November 9, 2026. Increasing the constitutionally protected school homestead exemption requires legislative action and voter approval of an appropriate constitutional amendment.
Political announcements alone do not change homeowners’ current tax bills.
Residents can check their exemption status with their county appraisal district, compare school taxes with other line items on their bills, and ask their state representative and senator whether they support a $200,000 general exemption, how they would finance it and whether relief would extend to younger homeowners. The comptroller provides application guidance and eligibility information.
Previous coverage by The Dallas Express has traced Patrick’s earlier push to expand homestead exemptions, including his 2025 goal of eliminating school property taxes for most seniors.
