How the New 2025 Texas Homestead Exemptions Can Cut Property Taxes by Over $2,400/Year!

If you own a home in Texas, there’s exciting news on the horizon for 2025! The state has introduced new changes to the Homestead Exemption that could help you save more than $2,400 a year on your property taxes. As your local real estate resource, I’m here to break down what these changes mean and how you can make the most of them.

What’s Changing in 2025? 

The Texas legislature has increased the amount of the Homestead Exemption for primary residences. This means a larger portion of your home’s value will be shielded from property taxes, directly reducing your annual bill. For many homeowners, this could add up to thousands of dollars in savings.

How Much Can You Save?

Let’s look at a typical example. If your home is valued at $350,000, and the exemption increases by $40,000, you could see your taxable amount drop significantly. With the new exemption, many homeowners will save over $2,400 a year—money that can go toward family vacations, home improvements, or simply easing your monthly budget.

How Texas Propositions 13 & 11 Cut a Cibolo Home’s Property Taxes by Over $2,800 a Year

Texas homeowners are finally seeing real property tax relief. With the passage of Propositions 13 and 11, the state increased the general homestead exemption and added extra savings for seniors and disabled Texans. Here’s a real 2025 example from Cibolo, Texas showing how much these changes reduce annual property taxes and monthly escrow payments on a primary residence.

Assessed Home Value: $411,960 (after property tax protest)
Location: Guadalupe County – Cibolo, TX 78108
Tax Year: 2025 (Post Props 13 & 11)

Proposition 13: Higher General Homestead Exemption

Proposition 13 increases the statewide homestead exemption for school-district property taxes from $100,000 to $140,000. For a primary residence, the first $140,000 of value is shielded from school taxes, which often account for about 45% of the total property tax bill

Property Tax Comparison (Real Example)

Annual Property Taxes for a $411,960 Home in Guadalupe County:

• No Homestead Exemption: $7,950.42

• With $100,000 Homestead Exemption: $6,231.69

• With NEW $140,000 Homestead Exemption (estimate): $5,544.09

Savings Breakdown

• Savings from the original $100,000 homestead exemption:
  $7,950.42 – $6,231.69 = $1,718.73 per year

• Additional savings from the new $40,000 increase under Prop 13:
  $687.60 per year

• Total savings vs. no homestead exemption:
  $2,406.33 per year

Monthly Escrow Impact

• Old escrow (with $100k homestead): ~$519.31/month

• New escrow (with $140k homestead): ~$462.01/month

• Monthly reduction: ~$57.30/month

Proposition 11: Extra Relief for Seniors & Disabled Texans

Proposition 11 allows additional school-tax exemptions for homeowners who are 65 or older, disabled, or disabled veterans. These savings apply on top of the $140,000 homestead exemption created by Proposition 13.

On a typical $350,000 home, a qualifying senior or disabled homeowner could see an additional $600–$1,200 per year in tax savings, depending on how the local school district applies the exemption.

Who Qualifies?

• You must own and occupy the home as your PRIMARY residence on January 1 of the tax year.
• You cannot claim a homestead exemption on any other property, such as rentals.
• Some additional benefits are available for seniors, disabled homeowners, and veterans.

How to Apply

• Check your county appraisal district’s website for the 2025 application form.
• Submit the form along with proof of residence (such as a driver’s license showing your home address).
• Apply early in the year to lock in your savings for the full tax cycle.

Tips for Homeowners

• Double-check your eligibility every year—especially if you move or your circumstances change.
• Watch for deadlines and keep copies of all your paperwork.
• Reach out if you have questions—I’m here to help!