This week, Texas lawmakers approved a $338 billion two-year budget that prioritizes property tax relief.
TEXAS, USA — Property owners across Texas can expect to see significant changes on their tax bills this fall, thanks to a sweeping property tax relief package passed by lawmakers during the 2023 legislative session.
Billy White, chief appraiser for the Bell County Appraisal District, said homeowners could see lower school district taxes this year as a result of a proposed increase to the homestead exemption — from $100,000 to $140,000 — pending final voter approval on the November ballot.
“If passed, that’s $40,000 less in taxable value for school districts,” White said. “And legislation indicates it will take effect this year, so most tax bills that go out in October or November will likely reflect that assumption.”
The move is part of a larger $338 billion tax relief plan championed by Gov. Greg Abbott and the Texas Legislature. It’s designed to ease the burden on homeowners in a state with some of the highest property tax rates in the nation — a byproduct of Texas not having a state income tax.
White said the relief is especially important in fast-growing counties like Bell, where property values have climbed sharply in recent years.
“Property tax relief has always been a major goal for the legislature,” he said. “This will definitely help homeowners and anyone with a qualified homestead exemption.”
In addition to the increased homestead exemption, other changes include:
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Raising the over-65 and disabled person exemption for school districts from $10,000 to $60,000, also effective this year if approved in the fall election.
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A new $125,000 business personal property exemption, set to take effect in 2026, which White said will especially benefit small business owners.
McLennan County Commissioner Jim Smith said most of the $338 billion property tax relief package will go toward reducing school taxes, which make up about half of the average property owner’s tax bill.
Smith expressed concern over counties losing revenue from changes to the tangible personal property tax, which raises the exemption threshold from $2,500 to $125,000.
Smith said the state will not reimburse counties for the lost revenue, forcing local governments to consider raising tax rates just to break even.
“If we have to raise it to the no new revenue rate to recoup some of this lost money, it’s going to make us look like the bad guys,” Smith said.
Despite the state’s promise of relief, Smith said counties are left in a difficult position, awaiting certified tax rolls in July to fully assess the financial impact.
White emphasized the importance of residents staying informed.
“Most people’s tax bills go to their mortgage companies, but those who check will see a noticeable decrease if their property qualifies for the exemptions,” White said.
School districts are expected to remain financially stable, as the state plans to offset the revenue losses from the increased exemptions.
This latest tax package is one of the largest in Texas history and part of a long-standing effort to reduce local property tax burdens while maintaining essential services.
Texans will have the final say on these exemptions when they head to the polls in November. If approved, the new relief measures will become a reality for millions of property owners statewide — starting this year.