Recent figures released by State Senator Paul Bettencourt (R‑Houston) reveal that almost 1.45 million Texas homeowners who are 65 years or older, or who have qualifying disabilities, currently owe no school district property taxes. The data underscore the impact of the existing homestead exemption and set the stage for a statewide discussion on expanding relief.
Current exemption structure
Texas law requires school districts to exempt the first $140,000 of a homeowner’s primary residence from school district taxes. Seniors and disabled owners receive an additional $60,000 exemption, creating a combined $200,000 exemption for those qualifying under the age‑or‑disability criteria, according to the state comptroller.
How many are already tax‑free?
Bettencourt’s office reports that at least 60 % of qualifying seniors and disabled homeowners in 227 of the state’s 254 counties pay no school district taxes. In 93 counties, the share climbs to at least 90 %. Specific counties highlighted include Tarrant (61 %), Bexar (73 %) and El Paso (87 %). An earlier analysis from the senator’s office estimated that 39.23 % of all Texas homesteads owed no school district taxes in 2025, and that the average school district tax bill for general homesteads fell 13.57 % that year.
Proposed broader exemption
Legislators are now debating whether to raise the standard school district exemption from $140,000 to $200,000 for every eligible primary residence, regardless of age or disability. The proposal would add $60,000 of taxable‑value relief for qualifying homeowners, reducing a typical Dallas ISD school tax bill by roughly $591 annually – about $49 per month – for a home with sufficient taxable value to use the full increase.
It is important to note that this proposal targets only school district taxes; city, county and other local taxes would remain unchanged because those entities calculate their rates and exemptions separately.
Alternative plan from Lt. Gov. Dan Patrick
Lt. Gov. Dan Patrick has put forward a different approach: raising the general school district exemption to $180,000 and the combined exemption to $240,000 for homeowners age 55 or older, while also lowering the qualifying age for school‑tax ceilings from 65 to 55. Neither the Senate proposal nor the Lt. Gov.’s plan has been enacted into law.
Fiscal considerations
Expanding exemptions would lower taxable values for eligible homeowners, potentially reducing school district revenues. Bettencourt notes that recent tax‑relief measures were financed with state general‑revenue surpluses rather than new taxes, but he acknowledges that a sustainable funding plan will be required for any long‑term expansion.
What Texas homeowners should watch
For homeowners with mortgage escrow accounts, changes in tax liability could affect monthly escrow payments. Those without mortgages will continue to pay taxes directly, and renters cannot claim a homestead exemption on a landlord’s property, though landlords may factor tax costs into rent prices.
The upcoming 2027 legislative session will provide another opportunity for lawmakers to debate these proposals. Texans will be watching to see whether higher school‑district exemptions translate into lasting savings while preserving the funding needed for quality public education.
Original reporting: The Dallas Express — read the source article.
