The 89th Texas Legislative Session brought major changes to the state’s property tax system, including a significant Texas homestead exemption increase and new protections for residential homeowners. This post breaks down the most important updates that could impact your 2025 and 2026 property tax bills—especially if you live in San Antonio or Bexar County.
SB 4 – Major Texas Homestead Exemption Increase to $140,000
Senate Bill 4 (and SJR 2) increases the school district homestead exemption from $100,000 to $140,000. If approved by voters in the November 2025 constitutional amendment election, the increase will apply retroactively to January 1, 2025.
Key Details:
- Applies to your school property tax bill, often the largest portion of your total tax liability.
- The state will reimburse school districts for lost revenue to prevent funding gaps.
Impact: This Texas homestead exemption increase could save many homeowners several hundred dollars per year in school district taxes.
HB 2730 – No More Reapplying for Your Homestead Exemption Without Cause
HB 2730 prohibits appraisal districts from requiring homeowners to reapply for their homestead exemption unless there is clear evidence of ineligibility. Before requesting reapplication, districts must attempt to verify eligibility through official records, such as a driver’s license.
Effective Date: May 24, 2025
Impact: This protects homeowners from unnecessary paperwork and ensures exemption continuity.
HB 2508 – Full Property Tax Exemption for PACT Act Surviving Spouses
HB 2508 provides a 100% property tax exemption for the residence homestead of a surviving spouse of a veteran who died due to a qualifying condition under the federal PACT Act, as long as the surviving spouse has not remarried.
Effective Date: January 1, 2026, pending voter approval in November 2025
Impact: Provides full tax relief to surviving spouses of veterans affected by toxic exposure during service.
SB 467 – Partial Exemption for Homes Destroyed by Fire
SB 467 creates a temporary pro-rated property tax exemption for the portion of a homestead that is destroyed by fire and uninhabitable for at least 30 days.
Requirements:
- Homeowners must apply within 180 days of the fire.
- The exemption is prorated based on the number of days remaining in the year.
Effective Date: Retroactive to January 1, 2025, if approved by voters in November 2025
Impact: Prevents homeowners from paying full taxes on homes that are no longer livable.
SB 1453 – Expanded Detail in School District Tax Notices
SB 1453 requires school districts to include more detailed financial disclosures in tax rate notices. Notices must show:
- Revenue per student
- Year-over-year tax rate comparisons
- Fund balances and debt obligations
School boards can adopt higher debt rates only with a supermajority vote (60%) and must disclose how additional funds will be used.
Effective Date: January 1, 2026
Impact: Enhances transparency for taxpayers and helps communities better understand how tax revenues are allocated.
SB 1502 – No Tax Rate Increases After Failed Elections
SB 1502 prohibits school districts from using fallback methods to raise tax rates in years when voters have already rejected a proposed increase.
Effective Date: January 1, 2026
Impact: Strengthens taxpayer rights by ensuring voter outcomes are respected without workarounds.
SB 25 – Increased Exemption for Seniors and the Disabled
SB 25 (paired with SJR 85) increases the additional homestead exemption for homeowners over age 65 or with disabilities from $10,000 to $60,000.
Effective Date: Retroactive to January 1, 2025, if approved by voters in November 2025
Impact: Provides substantial tax relief for senior and disabled Texans.
Stay Informed: What San Antonio Homeowners Should Do Next
If you’re a residential homeowner in San Antonio, these changes could reduce your property tax liability and improve your rights as a taxpayer. The Texas homestead exemption increase under SB 4 and the expanded benefits for seniors, disabled individuals, and veterans are especially impactful.
What to do:
- Mark your calendar for the November 2025 election—many of these changes require voter approval.
- Review your 2025 Notice of Appraised Value to understand how these changes may apply.
- Contact your local tax consultant or property tax firm if you have questions about filing deadlines, exemptions, or appeals.
For continuing updates, legislative news, and property tax appeal guidance in Bexar County, visit www.alamoadvalorem.com or follow our blog.