The Texas House of Representatives took a significant step toward delivering broad property tax relief on Tuesday, passing a pair of bills that increase homestead exemptions for millions of Texans — including a sweeping boost for seniors and disabled homeowners.
The legislation, part of a broader $10 billion tax relief package outlined by Governor Greg Abbott in his 2025 State of the State Address, was approved unanimously in the House. The plan raises the standard homestead exemption from $100,000 to $140,000. For Texans over the age of 65 and those with disabilities, the additional exemption will jump from $10,000 to $60,000 — bringing their total exemption to $200,000.
State Rep. Morgan Meyer (R-Dallas), who carried the legislation, emphasized that the bill is the result of months of collaboration between legislative leaders and is designed to provide lasting relief to homeowners feeling the pinch of rising property appraisals.
“This bill does in fact help millions of Texans with their property tax burden,” Meyer said on the House floor. “We’ve worked very hard to come to this agreement, and I want to thank the governor, lieutenant governor, speaker, and Senator Bettencourt for making it possible.”
The exemption increases are expected to all but eliminate property tax bills for many elderly homeowners whose taxes are already frozen under Texas law. The change also comes with a critical provision to ensure public schools don’t lose funding: Meyer added a “hold-harmless” amendment that requires the state to reimburse school districts for any lost revenue due to the increased exemptions.
The Bigger Picture
The homestead exemption bills are one side of a two-part tax reform agreement between the House and Senate. The other half, already passed, boosts the business personal property tax exemption — a levy on inventory and income-producing equipment — from $2,500 to $125,000.
Still ahead is the more complex task of "rate compression" — using state dollars to directly buy down local school district tax rates. That component remains under negotiation between the two chambers.
Despite the unanimous vote, not everyone was fully satisfied.
State Rep. Mike Olcott (R-Fort Worth) proposed an amendment to raise the standard exemption even further to $160,000. The amendment was quickly tabled by Meyer, who said any changes would violate the delicate agreement hammered out with the Senate.
“I’m disappointed in the amount of property tax relief we’re giving our citizens,” Olcott said. “Other than the border, this is the number one issue I hear about. I ran on this promise.”
State Rep. Brian Harrison (R-Midlothian) also expressed concerns that the package doesn’t go far enough to address long-term funding imbalances. And Rep. Terry Canales (D-Edinburg), while voting for the measure, described it as a temporary fix: “This is a Band-Aid on a much bigger problem,” he said.
A Smoother Path This Time
Last session, efforts to pass property tax reform led to a legislative impasse and multiple special sessions. This time around, lawmakers appear to be on a more productive trajectory, with both chambers moving swiftly to secure early wins on the issue.
With Senate approval expected soon and the final piece of the package — rate compression — under active discussion, Texas could see one of its most significant property tax overhauls in decades finalized before the end of the 89th Legislative Session.
