Texas Border Business
Texas Border Business
Senate Bills 4 and 23, part of a legislative package addressing property tax reform, were passed by the Texas Legislature before the session ended on June 2, 2025. These bills are designed to deliver significant tax relief to homeowners by increasing the state’s homestead exemption, which could save the average household several hundred dollars annually.
SB 4 raises the general school district homestead exemption from $40,000 to $70,000. SB 23 complements this by adjusting how local governments calculate property tax levies, effectively reducing the overall tax burden on residential property owners. The bills aim to address long-standing concerns about rising property tax bills and their impact on Texans, particularly those on fixed incomes.
This legislation is likely part of the property tax relief agenda that Lieutenant Governor Dan Patrick has frequently promoted. Patrick has been vocal in recent years about the need to reduce property taxes and has made raising homestead exemptions a legislative priority. In public statements during the session, he repeatedly pointed to homestead exemption increases as a central component of the state’s tax strategy.
The bills’ next step is executive review. They have been sent to Governor Greg Abbott, who can sign them into law, veto them, or allow them to become law without a signature. Given their alignment with Republican leadership priorities and prior public support from both Abbott and Patrick, the bills are expected to be enacted.
If signed, the new exemption amounts would apply to the 2025 tax year, with homeowners seeing the benefit reflected in bills due later this year or early next year.
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