Texas Senate sends $140k Homestead Exemption bill to the House for approval

HOUSTON - Senate Bill 4, a bill authored by Texas State Senator Paul Bettencourt (R-Houston), unanimously passed (30-0) on Thursday. It will be sent to the Texas House for approval.

The bill would increase the homestead exemption from $100,000 to $140,000, and $150,000 for seniors, which is the largest exemption increase in state history, according to a news release from the Office of Senator Bettencourt.

Increasing the Homestead Exemption

With unanimous Senate approval, SB 4 and SJR 2 now head to the Texas House, where they are expected to receive broad bipartisan support. If passed, Texans will have the opportunity to vote on the constitutional amendment in the November 2025 election. This exemption would apply retroactively to 2025 tax bills.

The Senate’s approval of these measures follows the largest property tax reduction in U.S. history, which was overwhelmingly approved by 83% of Texas voters in November 2023. That bill raised the Homestead Exemption to $100,000.

By the numbers:

Senate Bill 4 works in conjunction with Senate Bill 1, the General Appropriations Act, which provides 6.8 pennies of school district tax rate compression. 

The compression will reduce the statewide average ISD tax rate from $0.9766 to $0.9086, resulting in an additional $133.13 in savings for the average homestead property owner. 

Senator Bettencourt says with the savings from SB 4, the total estimated annual tax reduction for Texas homeowners is $496.57.

Senate Bill 4 maintains its protections for over-65 and disabled homestead exemption owners, ensuring that as property values rise and tax rates compress, their freeze values automatically adjust to provide continued tax relief.

READ MORE: More Texas tax relief ahead? SB 4 to add onto historic property tax relief

What they're saying:

"Today, the Texas Senate delivered a win for homeowners statewide. By passing SB 4 and SJR 2, we are putting real dollars back into the pockets of Texans while ensuring our schools remain fully funded," said Senator Bettencourt. "The average homeowner will see an estimated annual savings of nearly $363, but wait there’s more, as nearly $500 of help is on the way!"

During Senate Committee testimony, Charles Scoma of the Texas Silver-Haired Legislature highlighted the significance of this relief, noting that 80% of Texas seniors live on just $36,000 of disposable income annually. "I estimate 80-90% of Texas seniors will pay no property taxes at all," he stated.

"The Senate’s passage of SB 4, which increases the Homestead Exemption to $140,000, and $150,000 for seniors, builds on last session’s historic success," said Once signed into law and voters approve the constitutional amendment proposition in November 2025, the $140,000 Homestead Exemption will be codified in the Texas Constitution forever. "

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"In 2023, the Texas Senate delivered a tax cut of $1,266.30 for the average homeowner. When tax cuts from 2023 and 2025 are combined, homeowners will be reviewing a total tax cut of $1,762.87. Senators from both sides of the aisle understand that when an increased Homestead Exemption and more compression are combined, homeowners receive maximum tax relief benefit. I thank Sen. Paul Bettencourt for his hard work in carrying Senate Bills 4 and SJR 2"
Said Lt. Governor Dan Patrick.

"In 492 school districts, the 140k Homestead exemption will mean the average homeowners will pay no school property taxes in 49% of state schools districts." concluded Bettencourt. "With today’s passage, the Texas Senate has made it clear: more property tax reduction is on the way!"