During a September 1 hearing of the Senate Local Government Committee, Sen. Paul Bettencourt, R‑Houston, presented the most comprehensive data yet on the impact of recent state‑wide property tax relief. The figures show a clear downward trend for Texas homeowners, reinforcing Governor Greg Abbott’s pledge to keep taxes low and families financially secure.

Tax bills drop across the board

According to the data gathered from appraisal districts and tax assessor‑collectors in all 254 Texas counties, the average school‑district property tax bill fell from $1,037 in 2024 to $896 in 2025 – a reduction of roughly $140 per household, or 13.6%. The decline reflects the $51 billion property‑tax relief package that the Legislature approved for the 2026‑27 biennium.

Homeowners age 65 or older, as well as those with disabilities, saw even larger savings. Their average bill dropped from $565 to $380, a $185 decrease. The state’s homestead exemption, which shields the first $140,000 of a home’s value from school taxes, remains in place, while seniors and disabled residents benefit from a $200,000 exemption.

Millions paying nothing

Of Texas’s roughly 6.1 million homeowners, about 39 percent paid $0 in school property taxes last year because their home values fell below the exemption threshold. As Sen. Bettencourt emphasized, those homeowners will never see a tax bill rise above zero for the remainder of their lives.

Broad support, but questions remain

Sen. Bryan Hughes, R‑Mineola, praised the progress, saying, “There’s more work to do, but I hope everybody can see that we are on the path to getting homeowners out of school property taxes.” The relief effort has been bipartisan; Sen. Royce West, D‑Dallas, noted that both parties backed the measures, though he raised concerns that apartment‑dwelling renters may feel a disproportionate share of any tax shifts.

Some critics argue the savings have not fully reached renters. Sen. Molly Cook, D‑Houston, read a constituent’s comment that they “have never seen a tax break because of these exemptions.” She added, “Every tool we funded just hasn’t translated to savings in their actual pocketbooks.” While landlords are not legally required to lower rents when their property taxes drop, the Senate panel urged them to consider passing on the benefits.

Housing affordability still a challenge

JD Hale, vice president of government relations for the Texas Association of Builders, warned that despite tax relief, homeownership remains out of reach for many families. He defined an “attainable” home as one where housing costs stay below 30 % of household income. With the median new‑home price at $380,000, a family would need an annual income of about $130,000 to meet that benchmark.

Texas currently ranks 43rd in homeownership rates, a statistic Hale described as “sad” given the state’s reputation for business friendliness. He called for policies that move more Texans into homes, aligning with the broader goal of strengthening families and communities.

Fiscal context

In July, Governor Abbott and legislative leaders directed most state agencies to trim their base budget requests by 3 % for the 2028‑29 biennium, citing the need to preserve Texas’s strong fiscal position and address affordability concerns. The $51 billion earmarked for property‑tax relief will continue in each two‑year budget unless lawmakers roll back existing exemptions.

Governor Abbott has pledged to eliminate school‑district property taxes altogether in the next legislative session, a bold step that aligns with the administration’s commitment to lower the tax burden on families. Critics warn that sustaining such large exemptions could create a structural deficit, but supporters argue the current surplus and disciplined spending make the plan viable.

Next steps

The Senate committee’s hearing featured invited testimony only; the public was not heard directly. The House Ways and Means Committee will consider additional property‑tax relief measures at its September 15 hearing. As the Legislature reconvenes, Texas homeowners can expect continued focus on tax relief, fiscal responsibility, and policies that protect families and uphold the Constitution’s guarantee of property rights.

Original reporting: Community Impact — Plano — read the source article.