Tax Cuts for Texas Homeowners

We Delivered a $100,000 Homestead Exemption as Promised

Standing with Senator Paul Bettencourt, R-Houston, my super smart finance guys, and his smart team holding their work sheet. They did their calculations on these sheets for weeks and weeks. A lot of math calculations and research goes into an $18 billion tax cut.

On Wednesday, the Texas Senate unanimously passed Senate Bills 2 and 3, Property and Franchise Tax Relief, by Sen. Paul Bettencourt, R-Houston. Senate Bill 2 increases the homestead exemption to $100,000 for homeowners under age 65 and to $110,000 for homeowners over age 65. The average home value in Texas is $330,000, and a homeowner living in that home will receive a yearly permanent tax cut of $1,250 to $1,450 as long as they live in a homestead property. Over the life of a typical 25-year mortgage, homeowners could save between $25,000 and $30,000. Senate Bill 3 increases the threshold before small businesses are required to pay and file franchise taxes. You can click here to read my official statement and learn more about each bill.

I started working to reduce property taxes at a Capitol hearing in 2003, four years before I was elected to the Texas Senate. It has been a long road, but this is a great day for all property owners. I thank all 31 Senators for working together and being patient through this process.

Tax Cuts for the Average Texan

Did Dan Patrick really just deliver a tax cut for the average Texan? The answer is yes!

In this article, she pointed out that in 397 of the state’s 1,014 school districts, the average home value is less than $100,000. Those homeowners, often in rural areas, wouldn’t pay any school property taxes at all while businesses “provide the jobs that make homeownership possible in the first place.”

Here’s a brief video clip from my interview with KHOU 11 in Houston where you can learn more about our historic property tax cut legislation.

The deal represents a significant win for providing relief to Texas property owners and reflects the commitment of Texas leaders to address the concerns of taxpayers and provide significant relief from the burden of escalating property taxes.

Highlights of the $18 billion tax cut legislation include:

  1. Over $12 billion will be spent on reducing the school property tax rate for all homeowners and business properties.
  2. Every homeowner who homesteads their home (approximately 5.7 million homeowners) will get a $100,000 homestead exemption.
  3. Non-homesteaded properties, valued at $5 million and under, including residential and commercial properties, will receive a 20% circuit breaker on appraised values as a 3-year pilot project.
  4. Legislation will also include savings on the franchise tax for small businesses and create newly elected positions on local appraisal boards.

The BIGGEST Property Tax Cut in Texas History

I am thrilled that we have reached an agreement on proposed legislation that will deliver the biggest property tax cut in Texas history. I joined The Mark Davis Show on Tuesday morning to share some highlights of this historic legislation – it is fantastic news for Texas homeowners! Click here to listen to the clip.

IMPORTANT Vote in November!

Yesterday, the Texas Senate also unanimously passed House Joint Resolution 2, the final piece of the largest property tax relief package in Texas history, and likely the world.

HJR 2, by Sen. Paul Bettencourt, R-Houston, authorizes a constitutional amendment election in November to allow for the provisions of Senate Bill 2 to be implemented.

Texans should take note of the November 7, 2023, constitutional amendment election date so they can vote in favor of this historic tax relief and several other key measures for the future of our state.

If voters approve House Joint Resolution 2, a $100,000 homestead exemption would be permanently codified in the Texas Constitution, as well as create the 3-year pilot program for a 20% circuit breaker on non-homestead properties valued at $5 million or less, allow for the spending of state dollars for school district property tax rate compression without counting against the spending limit, and create local elections of 3 appraisal district board members in counties with a population of 75,000 or more.

If approved, the impact of the $100,000 homestead exemption and school district tax rate compression will be retroactive for the 2023 tax year resulting in a tax cut of $1,250 to $1,450 for a homeowner living in the statewide average home valued at $331,000.

Here is my official statement on the passage of HJR 2.

Both chambers have adjourned, sine die, all legislation has passed, and is now ready to be signed. It was a historic week in Texas, indeed!

Thank you all for your support and everything you do to keep Texas red. May God bless you and your family, and may He continue to bless the greatest state of all—Texas.


Dan Patrick

Dan Patrick
Lieutenant Governor of Texas