Changes to Homestead Exemption
I’ve got more information on the property tax reform bill for Texas. First, the homestead exemption for school district property taxes will increase by $60,000 from $40,000 to $100,000. Again, a homestead property is your primary residence. So how much money does this actually save you? Simply multiply your school tax rate by $60,000, and you’ve got your savings. This change must be approved by Texas voters so it will be on the November ballot. It's going to pass by a huge margin. In addition to the increase to $100,000, seniors and the disabled will get an extra $15,000 homestead exemption. The other major facet is what we call tax compression. School districts will lower their tax rate by 10.7% for the M&O side of the tax bill. This reduction in taxes impacts all properties so it’s a benefit for owners of commercial and investment properties, not just those who have a homestead exemption.