The vote, in one line
On Tuesday, Nov. 4, 2025, Texans approved constitutional amendments that raise the school-tax homestead exemption to $140,000 and create a new $125,000 inventory exemption for businesses.
What homeowners get
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The homestead exemption for school district taxes jumps from $100,000 to $140,000, reducing the taxable value of your primary home. Seniors (65+) and Texans with disabilities also approved a separate measure that increases their targeted school-tax exemption.
What businesses get
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A new amendment exempts up to $125,000 of business inventory (and certain equipment) from local property taxes. The state will cover the school-district portion of that lost revenue; other taxing entities must decide how to adapt.
A quick dollar example
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On a “typical” Texas home valued at $302,000 last year, the higher exemption would have trimmed roughly $490 from the school-tax portion of the bill if it had been in place then, according to a Texas Tribune analysis. Savings vary by district and rate.
Who covers the gap?
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Texas has committed serious money to property-tax relief—$51 billion over the next two years, including this exemption boost. Supporters call it overdue relief; skeptics warn the price tag could pinch the budget if the economy slows.
What cities and counties must decide next
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Because the inventory break also applies to cities, counties, and special districts, local leaders now face choices: raise rates modestly, trim spending, or some mix of both to offset the new exemption. School districts get state backfill; other jurisdictions do not.
Bottom line for homeowners and small businesses
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Homeowners: Expect a lighter school-tax load once the new exemption applies, with larger relief if you’re 65+ or living with a disability.
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Businesses: Small retailers, makers, and distributors with meaningful stock on hand should see a tangible cut in inventory-related valuations.
What to watch
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Implementation timelines from appraisal districts and tax offices.
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Any city/county budget shifts to compensate for the broader inventory exemption.
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Next session debates if revenues soften, since these breaks now live in the state constitution, and other spending might take the hit first.
