2024 Texas Property Tax Relief Explained

Homestead Exemption Increase and More for Homeowners

In 2024, Texas homeowners will experience significant changes to property tax laws, thanks to a landmark $18 billion property tax relief package signed into law. Here's a summary of the updates and their impact on Texas residential homeowners:

Homestead Exemption Increase

The cornerstone of the property tax relief package is the substantial increase in the homestead exemption from $40,000 to $100,000 of a home's assessed value. This change means homeowners will see a decrease in the taxable value of their primary residences, leading to lower property tax bills. The Texas Legislature estimates that the average homeowner could see savings of $1,200, with those aged 65 and older or with disabilities potentially saving up to $1,400 on average​​.

Appraisal Cap for Non-Homestead Properties

Another significant change is the introduction of a three-year cap on appraisal increases for non-homestead properties valued at $5 million or less. Under the new law, appraisals for these properties cannot increase by more than 20%, aiming to protect property owners from steep tax hikes. This cap is particularly relevant in light of recent years where some properties have seen appraisal increases of 30% to 100%​​.

School District Tax Rates

The new legislation mandates a recalibration of tax rates for each school district by the Commissioner of Education, ensuring at least a 10.7% reduction in school district property tax rates. This initiative is designed to offer more uniform tax relief across the state, with all districts required to maintain tax rates within 90% of each other​​.

Impact on Small Businesses

Small businesses, particularly those with properties valued under $5 million, will benefit from a "circuit breaker limitation" on appraisals, capping any increase in appraisal value to 20% per year from 2024 to 2027. Additionally, businesses with an annual revenue of less than $2.47 million will be exempted from the franchise tax, providing further financial relief​​.


This historic tax cut package represents a major shift in Texas property tax law, aimed at providing significant relief to homeowners and small business owners alike. As these changes roll out, Texas residents are encouraged to stay informed and understand how these updates may impact their property taxes and overall financial planning.

For more detailed insights into these changes, the Texas Comptroller of Public Accounts and local news sources such as KHOU and The Texas Tribune provide comprehensive coverage and analysis​​​​​​.

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