Texas just cut property taxes. Here’s what changed—and what it means for you
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.
Read the original article on Crafting Your Home
