What the New Texas Homestead Laws Mean for Homeowners and Buyers

Did you know Texas voters just approved new homestead exemption laws that could lower your property tax bill starting next year?

In the November 2025 election, Texans overwhelmingly voted to expand the state’s homestead exemption from $100,000 to $140,000 for school district property taxes. These changes mean bigger savings for homeowners and more purchasing power for buyers. As your Parker County real estate professional, I’m here to help you understand what these updates mean for your bottom line and your next move in the market.

What Changed in the New Homestead Laws

Increased Exemption for Homeowners

The biggest update is the increase in the school district homestead exemption from $100,000 to $140,000 of your home’s appraised value. That’s a significant tax break, especially as home values across North Texas continue to rise.

For example, if your home is valued at $400,000, you’ll now only be taxed on $260,000 instead of $300,000 for school district purposes. That translates to real savings on your annual property tax bill.

Additional Relief for Seniors, Disabled Homeowners, and Veterans’ Families

The amendments also increased exemptions for Texans age 65 and older, those with disabilities, and surviving spouses of certain veterans. These changes aim to protect fixed-income homeowners from rising property taxes and offer more stability for those who have served our country.

State Reimbursement for School Districts

The state of Texas will cover any revenue lost by school districts because of the exemption increase, so local school budgets aren’t directly affected. That means homeowners benefit from lower taxes without cutting into school funding.

What This Means for You

If You’re a Homeowner

These changes could reduce your annual tax bill and increase your home’s long-term affordability. If you haven’t already filed for your homestead exemption, make sure to apply through your county’s appraisal district.

If You’re Thinking About Buying

Lower property taxes can make homeownership more accessible. This exemption helps offset higher home prices or interest rates by reducing yearly tax expenses. When you’re evaluating affordability, I can help you factor in these savings to find the best value for your budget.

If You’re Selling

This new law can make your property even more attractive to potential buyers. Lower annual taxes are a strong selling point, especially for first-time homeowners looking to stretch their budgets.

My Local Perspective

In Parker County and across North Texas, property values have held strong through 2025. These expanded exemptions will help balance those increases and keep our market competitive compared to other parts of the state. It’s a smart move for both current homeowners and anyone looking to move into the area.

Final Takeaway

The new Texas homestead laws bring meaningful relief to homeowners and added incentive for buyers considering a move. Understanding how these changes affect your taxes and home value can help you make smarter real estate decisions in 2026 and beyond.

If you’d like to know how much these new exemptions could save you, or how they might affect your home’s value, reach out to me today. I’ll help you run the numbers and guide you through your next real estate decision with confidence.

Kelly Jones / Local Real Estate Professional

Call or text me: 832-681-0445

Email: keyswithkellyjones@gmail.com

Written by Kelly Jones