As a homeowner in Texas, you know that property taxes represent the largest chunk of your annual tax bill. The good news is that Texas voters recently approved two constitutional amendments that significantly increase your tax savings, specifically on the school district portion of your taxes.

These changes, passed in the November 2025 election, offer substantial relief for all homeowners and enhanced support for our senior and disabled community members.

The General Homestead Exemption Just Got a $40,000 Boost

The General Residence Homestead Exemption is the core tax benefit for every homeowner who uses a property as their primary residence. This exemption reduces the home's value that is subject to school district taxes (the taxable value).

The statewide school district exemption increased from $100,000 to $140,000 of the home's value. This is a $40,000 increase in the amount exempt from taxation.

• What This Means: When the school district calculates your tax bill, they must now reduce the appraised value of your home by $140,000 instead of the previous $100,000. This is the largest, most widely applicable tax reduction available to Texas homeowners.

• The Proposition: This increase was implemented by voter approval of Proposition 13.

Enhanced Relief for Seniors and Disabled Homeowners

Homeowners who are age 65 or older or who meet the Social Security Administration’s definition of disabled receive an additional, powerful exemption. This exemption has seen a massive increase, providing critical relief for those often living on a fixed income.

The additional school district exemption for these qualifying homeowners increased from $10,000 to a substantial $60,000.

• The Total Exemption: A qualifying senior or disabled homeowner now benefits from a combined exemption of up to $200,000 ($140,000 General Exemption + $60,000 Additional Exemption).

• The Proposition: This enhanced exemption was implemented by voter approval of Proposition 11.

Key Date: Retroactive to the 2025 Tax Year

Perhaps the most important detail for your current tax planning: these exemption changes apply retroactively to the 2025 tax year.

Appraisal districts are currently updating their systems and records. Once the standard appraisal cycle is complete and updates are published, homeowners should see this new, lower taxable value reflected on their official documentation for the current tax year.

The Benefit of the School Tax Ceiling

For homeowners who are 65 or older or disabled, these new exemptions work in conjunction with the existing School Tax Ceiling (or "Freeze").

Once you qualify for the over-65 or disabled exemption, the amount of school district tax you pay is capped (or frozen) at that year's level. The only way this amount can increase is if you make major improvements to your home (like adding a room).

The Takeaway: The new, higher exemptions lower the base value on which your school tax is calculated before the ceiling takes effect, locking in a substantially lower tax bill for the future.

Are Your Exemptions Up-to-Date?

If you already had the standard homestead exemption on file, your local Appraisal District will automatically apply the increase from $100,000 to $140,000. No action is required for most homeowners.

However, you must file the appropriate, free application to your local Appraisal District if you have recently:

1. Purchased a home (you must file a homestead exemption application by April 30 of the year following your purchase).

2. Turned 65 (you must file the Over-65 Exemption application).

3. Become eligible under the Social Security Administration’s disability criteria (you must file the Disabled Exemption application).

(A homeowner may qualify for the over-65 or the disabled exemption, but not both.)

As your trusted real estate resource, I can help you confirm the following:

• Is your current homestead exemption active?

• Do you qualify for the over-65 or disabled exemptions and still need to file?

• How does the new $140,000 exemption impact your specific taxable value?

Understanding how these exemptions reduce your taxable value is crucial whether you are settled, planning to buy, or considering downsizing. Don't leave money on the table, verify that these new, significant savings are being applied to your property!