AUSTIN, TX – Senator Paul Bettencourt (R-TX) announces the filing of Senate Bill 4 with 28 senate joint authors to increase the residence homestead exemption to $140,000, marking the largest exemption in Texas history. SB 4 is a priority Bill of Lt. Governor Dan Patrick.

The Texas Legislature has a strong history of increasing the homestead exemption to ease the property tax burden on homeowners. The most recent substantial homeowners relief passed last session, raising the exemption to $100,000. With the passage of Senate Bill 4, Texans will have the opportunity to vote on another increase—raising the homestead exemption to a record $140,000. “My office estimated $363.44 in annual school property tax savings for the average Texas homestead based on a statewide ISD average tax rate of $0.9086, but wait, we’re not done yet!” said Senator Bettencourt.

To ensure that neither local taxpayer nor school district pay for this homestead exemption, Senate Bill 4 includes a hold-harmless provision, guaranteeing that any funding shortfalls resulting from the exemption increase will be fully covered by the state.

“SB 4 will not only cut ISD property taxes, but the state pays the bill, guaranteeing that no school district loses out on critical funding,” Senator Bettencourt added. “This measure is a win-win for taxpayers and everyone alike.”

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. This 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. “When combined with the savings from Senate Bill 4, the total estimated annual tax reduction for Texas homeowners amounts to $496.57!” He concluded. 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.

Senator Bettencourt is joined by Senators’ Alvarado, Birdwell, Blanco, Campbell, Cook, Creighton, Eckhardt, Flores, Gutierrez, Hagenbuch, Hall, Hancock, A. Hinojosa, J. Hinojosa, Huffman, Hughes, King, Kolkhorst, Menendez, Middleton, Nichols, Parker, Paxton, Perry, Schwertner, Sparks, West, Zaffirini as joint authors of SB 4.

SB 4, if passed and approved by the voters, will raise the ISD Homestead exemption to a record 140,000 for every Texas Homestead. SB 4 follows on the $22.7 Billion Dollar property tax reduction passed in the 2nd special session approved by 83% of Texas voters in November 2023.

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