Resources · Texas property tax law
New Texas Property Tax Laws: What Changed and What’s Next
Reviewed by Daniel Ortiz · Senior Property Tax Consultant · Last reviewed September 2026
The 2025 legislative session and the November 2025 constitutional amendment election changed Texas property tax for homeowners and businesses. All 17 amendments on that ballot passed. Here is what’s in effect, what expires, and what the 2027 session will decide.
For Homeowners
School homestead exemption: $140,000. Raised from $100,000 (Proposition 13), retroactive to the 2025 tax year. It applies to school district taxes, usually the largest part of the bill.
Over 65 or disabled: another $60,000. The additional school exemption for homeowners 65 or older or with a disability rose from $10,000 to $60,000 (Proposition 11).
Surviving spouses of veterans. Expanded exemptions for surviving spouses of veterans who died of service-connected conditions, including those recognized under the federal PACT Act (Proposition 7).
Homes destroyed by fire. A temporary exemption for a homestead completely destroyed by fire (Proposition 10).
The 10% homestead cap still applies. A homestead’s appraised value can’t rise more than 10% a year.
For Business and Commercial Property Owners
Business personal property: $125,000 exemption. Starting with the 2026 tax year, the first $125,000 of business personal property at each location in a taxing unit is exempt (Proposition 9, House Bill 9). Owners under the threshold can file a short certification instead of a full rendition.
The circuit breaker expires December 31, 2026. Non-homestead real property valued at $5,320,000 or less for 2026 can’t increase more than 20% a year in appraised value. It was passed as a three-year pilot and ends after the 2026 tax year unless the Legislature extends it. If it isn’t extended, 2027 values on these properties can rise without the 20% limit.
Tenants who pay the taxes. Tenants contractually responsible for property taxes on property valued at $5 million or less can request binding arbitration.
Changes to Appraisal and Protests
Reappraisal plans. A 2025 law limits appraisal district plans that reduce how often property is reappraised. In Bexar County, it’s one reason the 2025–2026 rolled values weren’t carried into the 2027–2028 plan.
Remote hearings. Owners representing themselves can request a hearing by phone or video if they ask ahead of time.
Elected appraisal district board members. Since 2024, voters in counties over 75,000 people elect three members of the appraisal district board. Those seats are on the November ballot in Bexar County this year.
What to Watch in the 2027 Session
The 90th Legislature convenes January 12, 2027. For property owners, the biggest open question is the circuit breaker: extend it, make it permanent, or let it lapse. Further homestead exemption increases and limits on local tax rate growth are also likely to come up.
This page is updated after the session ends and again after any constitutional amendment election.
This article is general information about Texas property tax, not legal advice. Rules and deadlines can change with each legislative session.
Property Tax Law FAQs
Do I need to apply for the $140,000 homestead exemption?
If you already have a homestead exemption, the increase applies automatically. If you don’t, you need to apply once with your appraisal district.
Does the $125,000 business exemption apply automatically?
The appraisal district applies it to property you render or certify. Owners under the threshold file a short certification on the rendition form.
Is the circuit breaker being renewed?
That’s up to the 2027 Legislature. Until it acts, the 20% limit ends after the 2026 tax year.
New Laws Don’t Fix an Overvalued Property
Exemptions lower the taxable value. Only a protest lowers the appraised value. No savings, no fee.