Texas Senate Unanimously Passes SB 4 & SJR 2: A Historic Win for Homeowners

The Texas Senate has taken a monumental step in providing substantial property tax relief for homeowners across the state. In a unanimous 30-0 vote, Senate Bill 4 (SB 4) and Senate Joint Resolution 2 (SJR 2) have been passed, advancing the largest homestead exemption increase in Texas history. Authored by Senator Paul Bettencourt (R-Houston) and strongly supported by Lieutenant Governor Dan Patrick, these measures will raise the homestead exemption from $100,000 to $140,000, putting real savings back into the pockets of Texans.

What This Means for Texas Homeowners

The increase in the homestead exemption will bring significant financial relief to homeowners. Here’s what you need to know:

✅ $140,000 Homestead Exemption – The highest exemption increase in state history
✅ Annual Savings of Nearly $363 for the average homeowner
✅ Total tax relief of up to $1,762.87 when combined with previous cuts
✅ School District Tax Rate Compression – Providing an additional $133.13 in savings per homeowner

According to Charles Scoma of the Texas Silver-Haired Legislature, this relief is especially crucial for Texas seniors, 80% of whom live on just $36,000 of disposable income annually. He estimates that 80-90% of Texas seniors will pay no property taxes at all under this new exemption.

Building on Past Success: The Largest Property Tax Cut in U.S. History

The Senate’s approval of SB 4 and SJR 2 follows the $22.7 billion property tax reduction package (SB 2) approved by 83% of Texas voters in November 2023. This latest measure builds on that success by further reducing school property taxes while ensuring that public schools remain fully funded.

Senate Bill 4 works in tandem with Senate Bill 1, the General Appropriations Act, which provides an additional 6.8 cents of school district tax rate compression. This will save homeowners a total of $496.57 annually.

Lt. Governor Dan Patrick praised the bipartisan support for these tax cuts:
"When an increased Homestead Exemption and more compression are combined, homeowners receive the maximum tax relief benefit. I thank Sen. Paul Bettencourt for his hard work in carrying Senate Bills 4 and SJR 2.”

What’s Next? A Vote for the Future

With unanimous Senate approval, SB 4 and SJR 2 now move to the Texas House, where they are expected to receive broad bipartisan support. If passed, Texans will vote on the constitutional amendment in November 2025, securing long-term property tax relief.

Key Takeaways:

📌 492 school districts will see zero school property taxes for homeowners under the $140K exemption
📌 Nearly half (49%) of all school districts in Texas will benefit from full school property tax coverage
📌 The state will cover any funding shortfalls for school districts due to the exemption increase
📌 Protections remain in place for homeowners over 65 and disabled individuals

Final Thoughts

The Texas Senate has sent a clear message: Property tax relief is on the way. By ensuring the largest homestead exemption increase in state history and fully funding schools, Texas lawmakers are working to alleviate financial burdens for homeowners while maintaining essential services.

Now, it’s up to the Texas House and voters in November 2025 to cement this historic tax cut into law. Stay tuned for updates on this game-changing legislation and how it will impact your property taxes moving forward!

Kristen Smith Realtor, Best San Antonio Realtor