Texas Senate passes major property tax relief bill for elderly and disabled homeowners

In a move hailed as historic by state leaders, the Texas Senate on Wednesday overwhelmingly approved legislation to provide substantial property tax relief to elderly and disabled homeowners, raising the total homestead exemption for this group to $200,000.

Senate Bill 23 and its companion Senate Joint Resolution 85, authored by Sen. Paul Bettencourt (R-Houston), were approved by a decisive 30–1 vote. The measures increase the school property tax homestead exemption for homeowners age 65 and older from $10,000 to $60,000 — a $50,000 boost that comes in addition to a previously planned general homestead exemption increase from $100,000 to $140,000.

The combined effect: many senior homeowners in Texas will owe little to nothing in school property taxes.

“Because property taxes are frozen for seniors, the combined $200,000 homestead exemption means school property taxes would be ELIMINATED for the average Texas senior homeowner,” said Lt. Gov. Dan Patrick, who has championed the legislation alongside House Speaker Dustin Burrows (R-Lubbock). “This is a historic victory for Texas seniors.”

The proposal is projected to cost the state $1.2 billion over the next two years. It's part of a broader push for $6 billion in total property tax relief outlined in the draft 2026–2027 state budget. Gov. Greg Abbott has called for at least $10 billion in new property tax relief initiatives.

Why It Matters

For elderly and disabled Texans, many of whom live on fixed incomes, the relief is significant. According to testimony from Sen. Bettencourt, the average Texan over 65 has just $36,000 in disposable income annually — even less in rural areas and the Rio Grande Valley. He said the exemption increase could effectively return around $1,000 to seniors, freeing up critical funds for essentials.

“It makes a huge difference in their budget when they’re living on fixed income where the check doesn’t change from month to month,” Bettencourt said.

For homeowners who already benefit from a property tax "freeze" when they first qualify for the exemption, increasing the exemption amount reduces their actual tax burden — in some cases to zero.

Not Without Dissent

Despite near-unanimous support, the bill did receive one “no” vote — a rarity for homestead exemption bills. Sen. Nathan Johnson (D-Dallas) raised concerns about equity and fiscal responsibility.

While acknowledging the need to help homeowners stay in their homes, Johnson questioned whether prioritizing tax relief for property owners over other vulnerable groups — such as elderly renters — was the most effective use of state funds.

“For the cost of this bill, we could give 800,000 people health insurance,” Johnson said. “What about the larger proportion of people over 65 who will not receive any benefit from this, who nevertheless do pay sales taxes?”

He also criticized the permanence of the measure, which requires a constitutional amendment, calling it a "financial commitment in perpetuity" rather than a flexible policy solution.

Next Steps

With the Senate’s approval secured, the proposals now head to the Texas House. Historically, the House has favored "compression" — a method of using state funds to reduce school tax rates for all property types — over targeted homestead exemption increases.

Still, leaders in both chambers appear poised to compromise. Patrick expressed confidence the legislation will clear the House, saying, “Working with Speaker Burrows, I believe that we have a real opportunity to deliver this.”

If the House approves the measure and it receives final legislative passage, the proposed constitutional amendment will go before Texas voters for approval in the next statewide election.