New Property Tax Relief That Texans Can Feel
In 2025, the 89th Texas legislature took action to deliver lasting property tax relief for homeowners and business owners. Several key property tax exemptions and tax code changes will take effect in 2026.
Increased Property Tax Exemptions
- Increased homestead property tax exemption from $100,000 to $140,000
- Increased homestead property tax exemption for elderly and disabled Texans from $10,000 to $60,000
- An additional $10,000 exemption is available for disabled or elderly individuals based on economic need.
- Increased tax exemption for income-producing personal property from $2,500 to $125,000
- Temporary tax exemption for homesteads destroyed by fire
New Laws & Regulations
- Taxes on realized or unrealized capital gains for individuals, families, estates, or trusts are now prohibited.
- Ballot propositions for tax increases will be required to state the amount or maximum tax rate, and the phrase “THIS IS A TAX INCREASE” must be placed prominently on that ballot item.
- A new law allows land to retain open space appraisal status after ownership transfer is made if the new owner uses it similarly.
- Several amendments were made to the Tax Code to increase transparency, accessibility, and fairness in property appraisal and protest process for ad valorem tax purposes.
Texas Property Tax Reform and Transparency Act of 2019
In 2019, the Texas Legislature took a huge step to protect property owners.
With bi-partisan support, Senate Bill 2, also known as the Texas Property Tax Reform and Transparency Act of 2019, passed the Legislature and was signed into law by Governor Greg Abbott.
Included in the Act are several key benefits for Texas property owners:
- Taxpayers have a stronger voice in the process.
- More information about how tax rates are set.
- One convenient place to learn about your tax rates and send feedback to your local elected officials.
Governor Greg Abbott signs bill designed to limit property tax growth-Texas Tribune, 6/12/2019
