AUSTIN, TX – In a resounding victory for Texas Homeowners, the Texas Senate has unanimously (30-0) passed Senate Bill 4 and Senate Joint Resolution 2, marking a historic step in providing meaningful property tax relief. Authored by Senator Paul Bettencourt (R-Houston) and championed by Lieutenant Governor Dan Patrick, these bipartisan measures will raise the homestead exemption from $100,000 to a record-breaking $140,000 - the largest exemption increase in state history.

"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.

“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.

The Senate’s approval of these measures follows the largest property tax reduction in U.S. history, SB 2 - $22.7 billion—which was overwhelmingly approved by 83% of Texas voters in November 2023. SB 4 builds upon this success by further reducing school property taxes and ensuring long-term relief for Texas homeowners. Senate Bill 4 works in conjunction with Senate Bill 1, the General Appropriations Act, by Finance Chair Huffman which provides 6.8 pennies of school district tax rate compression. This compression will result in an additional $133.13 in savings for the average homestead property owner, for a total of $496.57.

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 November 2025, allowing them to secure long-term tax relief for generations to come.

“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!"

Senate Bill 4 includes a hold-harmless provision, guaranteeing that the state will fully cover any ISD funding shortfalls resulting from the exemption increase. Senate Bill 4 maintains its protections for over-65 and disabled homestead exemption owners.

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