New Property Tax Laws In The November 2025 Texas Election Provide Benefits To Austin Homeowners
Texas voters approved several new property tax laws in the November 2025 election that provide significant benefits to homeowners, primarily through increased homestead exemptions that are applied retroactively to the 2025 tax year.
Key Homeowner Benefits for 2025
The main benefits stem from two approved propositions that increase the amount of a home’s value that is exempt from school district property taxes.
- Increased General Homestead Exemption: Proposition 13 increased the general homestead exemption from $100,000 to $140,000. This means a homeowner will subtract $140,000 from their home’s appraised value before school district taxes are calculated, saving the average homeowner several hundred dollars a year.
- Enhanced Exemption for Seniors and the Disabled: Proposition 11 (SB 23) significantly raised the additional exemption for homeowners aged 65 or older, or those with disabilities, from $10,000 to $60,000. When combined with the general exemption, eligible senior or disabled homeowners can receive a total homestead exemption of up to $200,000. For many, this could eliminate their school property tax obligation entirely.
Additional Relief Measures
- Surviving Spouses of Veterans: Proposition 7 grants a property tax cut for the surviving spouses of veterans who died from a service-connected illness.
- Disaster Relief: Proposition 10 provides a temporary property tax exemption for improvements made to a residence homestead that is completely destroyed by a fire.
- Local Tax Rate Limits: The legislation also places tighter controls on how much school districts can raise their tax rates each year, protecting homeowners from sudden, steep increases.
How to Access the Benefits
The increased exemptions were applied retroactively to the 2025 tax year.
- Automatic Application: Homeowners who already have a homestead exemption should see the new, higher exemption amount automatically applied to their tax bill.
- New Homeowners: If you are a new homeowner, you must apply for a homestead exemption with your local appraisal district. You can find more information and forms on the Texas Comptroller’s website.
- Protesting Appraisals: Even with the new exemptions, property owners still have the right to protest their property’s valuation if they believe it is too high. This remains an important tool for managing your tax bill.
For specific details on your property, contact your local appraisal district.