What Texas homeowners need to know
Texas property tax rules have changed significantly in recent years, but not every property tax idea making headlines is already law. Some relief measures are currently in effect, while other proposals could change how homeowners pay school property taxes in the future.
For homeowners, knowing the difference matters. Here is what is currently in place and what is still being discussed.
What Texas Property Tax Changes Are Already Law?
One of the major changes affecting homeowners is the increase in the school district homestead exemption to $140,000.
For a homeowner who qualifies for a homestead exemption, the first $140,000 of the home’s appraised value is exempt from school district property taxes. This does not mean the homeowner is exempt from every property tax.
Other taxing units, such as a city, county or special district, may still tax the property.
Senior and Disabled Homeowners Have Additional Protection
Texas also provides additional school property tax benefits for homeowners who are 65 or older or disabled.
These homeowners can qualify for an additional school district exemption, and their school property taxes can also be subject to a tax ceiling on their homestead.
That means qualifying homeowners may have stronger protection against increases in their school property taxes than other homeowners.
What About Eliminating School Property Taxes?
This is where homeowners need to pay attention to the difference between current law and proposed changes.
Texas leaders have continued to discuss ways to reduce or potentially eliminate certain school property taxes for homeowners. Governor Greg Abbott has proposed eliminating school maintenance and operations, or M&O, property taxes for homeowners as part of a broader property tax plan.
However, a proposal is not the same as a law.
Homeowners should not assume that school property taxes have already been eliminated simply because the idea is being discussed.
Any major change would require the necessary legislative and constitutional processes before it could become effective.
What About a Property Tax Freeze Starting at Age 55?
Another proposal receiving attention would expand property tax protections to more homeowners by allowing a property tax freeze to begin at age 55.
Texas already has property tax protections for qualifying homeowners who are 65 or older or disabled. Lowering the age could provide additional relief to homeowners, but this should be treated as a proposal unless and until it becomes law.
Why These Changes Matter to Homeowners
Property taxes are not determined by your home’s value alone.
Your final tax bill can also depend on:
- Your exemptions
- Your local tax rates
- The taxing units that serve your property
- Whether your property qualifies for a tax ceiling
- Changes approved by local taxing entities
That is why two homeowners with similarly valued homes can still receive different property tax bills.
The Bottom Line
Texas has already enacted significant property tax relief, including the $140,000 school district homestead exemption. At the same time, lawmakers and state leaders continue to discuss additional measures, including broader property tax freezes and reducing or eliminating certain school property taxes for homeowners.
The important thing is to know which changes are already law and which are still proposals.
Before making decisions about your property taxes, check your county appraisal district and local taxing authorities to see which exemptions and protections apply to your property.
