State backs bigger tax break

Proposed increases to the state’s homestead exemption could bring added savings to many homeowners in Bastrop County, pending a constitutional amendment election in November.

The Texas Senate unanimously approved Senate Bill 4 and Senate Joint Resolution 2 earlier this month, raising the exemption to $140,000 and $150,000 for seniors. Authored by Sen. Paul Bettencourt, R-Houston, and supported by Lt. Gov. Dan Patrick, the higher exemption would apply retroactively to 2025 tax bills if signed into law and approved by voters.

“I have been fighting to reduce property taxes long before I was elected to the Texas Senate,” Patrick said in a statement. “I have made increasing the Homestead Exemption my mission because it is the best way to deliver meaningful property tax reductions for homeowners.”

A homestead exemption lowers the taxable value of a homeowner’s primary residence, cutting the total property tax owed, and certain categories — such as seniors, veterans or individuals with disabilities — may qualify for additional exemptions.

Local property owners already benefit from an exemption of $100,000 ($110,000 for seniors) enacted last year. Under the new plan, that amount would jump significantly — especially important in a region like Bastrop County where home values have risen in recent years, according to Patrick.

Patrick also noted that about half of all Texas school districts feature average home values under $140,000, meaning a homeowner in those districts could see their school maintenance and operations property tax bill eliminated entirely.

“When an increased Homestead Exemption and more compression are combined, homeowners receive maximum tax relief benefit,” Patrick added, referencing rate compression steps passed in the previous legislative session.

Statewide, the new exemption would save an average Texas homeowner about $363.44 per year, stacking with last session’s relief for broader potential savings of nearly $500, according to the state.

Homeowners may apply for the exemption through their city’s respective tax office.