2024 Changes to Texas Homestead Tax Exemptions: What Can You Expect?

By John Turner-McClelland

Real Estate Agent with Allen Tate Realtors 348386

January 21, 2024 10:00 PM

The Texas homestead exemption laws for 2024 saw some significant changes thanks to Proposition 4, passed by voters in November 2023. Here’s a summary of the key points:

Increased Homestead Exemption:

  • The exemption amount on school district taxes more than doubled from $40,000 to $100,000. This means a larger portion of your home’s value won’t be taxed for school funding, leading to potential savings.

  • Seniors (65+) and disabled individuals can still claim an additional $10,000 exemption, bringing their total exemption to $110,000.

  • No application is needed for existing homesteads, the increased exemption will be automatically applied to your 2023 tax bill (due January 2024).

Additional Property Tax Relief:

  • Appraisal cap for non-homestead properties: Commercial, mineral, and residential properties (excluding homesteads) valued under $5 million will have a 20% cap on their appraisal value increase each year for the next three years (2024-2026). This helps limit property tax hikes for businesses and certain investment properties.

  • School district tax rate compression: Some of the revenue lost from the increased homestead exemption will be replaced by state sales tax revenue, potentially leading to lower school district property tax rates.

Other Changes:

  • Homestead verification every five years: Starting in 2024, some homeowners may be required to verify their eligibility for the homestead exemption every five years. You’ll receive a notice from your local appraisal district if this applies to you.

Here are some helpful resources for further information:

I hope this summary is helpful! Please let me know if you have any other questions about the Texas homestead exemption laws.

Jean Robb