Texas voters approved a sweeping series of constitutional amendments in November 2025 that will directly impact property taxes paid by homeowners and businesses — as well as the budgets of schools, cities, and counties.
Below is a clear, section-by-section breakdown of:
The measures that now affect property taxes
Who benefits
What the state's fiscal experts project they will cost
How these changes impact Texas property owners and local governments
The following propositions are presented in order of their impact on the number of Texas property owners.
Proposition 13 (SJR 2): General School Homestead Exemption Raised to $140,000
Ballot language: "The constitutional amendment to increase the amount of the exemption of residence homesteads from ad valorem taxation by a school district from $100,000 to $140,000."
What it does: Increases the statewide school district homestead exemption from $100,000 to $140,000. With passage, homeowners will receive the tax relief retroactively for the 2025 tax year, meaning eligible homeowners will receive refunds or reduced bills for taxes assessed this year.
Who benefits: All Texas homeowners with a qualified residence homestead.
Estimated fiscal impact: State general revenue will backfill school districts for an estimated $2.7 billion in 2026-27 and more than $1 billion annually thereafter. Recapture payments from property-wealthy school districts will also decline, per the Legislative Budget Board (LBB).
What this means for your bill: According to the Texas Tribune, an owner of a typical Texas home (about $302,000) will have saved roughly $490 last year from the combination of this exemption and rate cuts.
Different perspectives: Critics of the proposition argue that “While this amendment provides short-term relief for homeowners, it does so by shifting the burden onto renters, small businesses, and non-exempt property owners. Broader tax reform, such as permanent M&O rate compression, would deliver more equitable and lasting relief across all Texans.” However, it’s definitely a start for property tax relief across the state — especially those in lower-income communities.
For homeowners, a larger homestead exemption reduces taxable value upfront and shields a bigger chunk of your home from the school district taxes.
Note, though, that the exemption itself doesn't provide inflation protection — that comes from the separate 10% homestead cap, which limits annual assessed value increases regardless of market conditions. — Kyle Breazeale, Property Tax Consulting Manager at Ownwell
Proposition 11 (SJR 85): Larger Exemption for Seniors and Disabled Homeowners
Ballot language: "The constitutional amendment authorizing the legislature to increase the amount of the exemption from ad valorem taxation by a school district of the market value of the residence homestead of a person who is elderly or disabled."
What it does: Increases the school homestead exemption for elderly or disabled Texans, removing an additional $60,000 from taxable value (previously $10,000). Similar to Prop 13, qualifying seniors and disabled Texans will retroactively receive funds for the 2025 tax year.
Who benefits: Homeowners age 65+ or those with a qualifying disability.
Estimated fiscal impact: The LBB forecasts that the state will help cover the revenue that school districts lose. That equates to more than $1.2 billion in state general revenue in the next biennium, then roughly $477 million annually, to hold school districts harmless. Recapture payments — tax revenue from higher-property-value school districts used to help fund lower-wealth districts — will decline as well.
Key detail: With both Prop 13 and Prop 11 approved, eligible seniors and disabled homeowners will layer the $140,000 general exemption plus the additional $60,000, shielding up to $200,000 of homestead value from school taxes.
Many people forget that in Texas, once you qualify at age 65, your school taxes get frozen at that level through the tax ceiling provision. This new $60,000 exemption means you're locking in savings at a much lower baseline, which compounds dramatically over a 15 or 25-year retirement.
That said, Prop 11’s significant fiscal impact raises concerns about long-term sustainability and potential cuts to public schools, particularly in rural communities. — Kyle Breazeale, Property Tax Consulting Manager at Ownwell
Proposition 9 (HJR 1): $125,000 exemption for business inventory and equipment (tangible personal property)
Ballot language: "The constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income."
What it does: Exempts up to $125,000 of a business’s tangible personal property (inventory and equipment) from all local property taxes (school districts, cities, counties, special districts). The previous statewide de minimis threshold was $2,500.
Who benefits: Small and mid-sized businesses with taxable inventory or equipment; multi-site taxpayers may see relief at multiple locations.
Estimated fiscal impact: According to the LBB’s fiscal note, the general revenue cost is about $193.5 million in 2027 and $100+ million annually thereafter to replace school district revenue. Other local jurisdictions would either absorb the loss or raise rates; however, recapture would likely decrease as a result.
Trade-offs: Supporters highlighted that Prop 9 will specifically help small businesses and entrepreneurs. Local officials expressed concern that it might put more strain on city and county tax rates.
Practical example:
A restaurant with $80,000 in kitchen equipment and a retail shop with $100,000 in inventory will each see their personal property tax bills drop to zero.
However, this tax cut can shift pressure onto city and county tax rates if the state does not backfill, especially in areas with multi-location businesses under the same enterprise or umbrella, which could save hundreds of thousands of dollars on personal property taxes.
Proposition 10 (SJR 84): Temporary Exemption for Homesteads Destroyed by Fire
Ballot language: “The constitutional amendment to authorize the legislature to provide for a temporary exemption from ad valorem taxation of the appraised value of an improvement to a residence homestead that is completely destroyed by a fire."
What it does: Creates a temporary property tax adjustment for a residence homestead that was destroyed by fire and remained uninhabitable for at least 30 days. Homeowners may apply for an adjusted tax bill on the restored home for the year in which the fire occurred.
Who benefits: Homeowners whose primary residence is destroyed by fire.
Estimated fiscal impact: Local tax revenue would likely fall when the exemption is granted. However, state costs to offset school district losses are currently challenging to calculate.
Practical takeaway: This is a targeted relief measure that aligns the home's taxable value with its post-disaster condition until it’s repaired.
Proposition 7 (HJR 133): Homestead Exemption for Certain Veterans’ Surviving Spouses
Ballot language: "The constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of all or part of the market value of the residence homestead of the surviving spouse of a veteran who died as a result of a condition or disease that is presumed under federal law to have been service-connected."
What it does: Authorizes a 100% homestead tax exemption for the un-remarried surviving spouse of a U.S. veteran whose death is presumed service-connected under federal law (including exposures recognized by the PACT Act).
Who benefits: An estimated 3,000 surviving spouses could qualify, according to a fiscal analysis.
Estimated fiscal impact: The state will offset school district revenue losses; costs are "not expected to be significant," as only an estimated 3,000 spouses could potentially benefit from the exemption.
Noteworthy impact: The PACT Act expansion transformed who qualifies. A surviving spouse in Houston with a $500,000 home will save approximately $12,000 in total property taxes annually; that's $240,000 over 20 years.
A key difference: This exemption applies when the veteran's death is presumed service-connected under federal law, which includes PACT Act conditions, even before full VA confirmation. This means eligible surviving spouses can receive the exemption and retroactive refunds once the federal presumption is established.
Proposition 5 (HJR 99): Exempt Animal Feed Held for Retail Sale From Property Tax
Ballot language: "The constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail."
What it does: Animal feed typically wasn't taxed at different points in its journey, from being harvested to being bought by a farmer. The only time it might have been taxed was when it was sitting in a store as inventory. Proposition 5 makes animal feed completely tax-exempt, even when it's in a store awaiting sale.
Who benefits: Agricultural retailers and feed store operators.
Estimated fiscal impact: Local revenue loss will be minimal. Opponents argued it gives an unfair tax benefit to feed sellers and that the state shouldn't create a special exemption for this particular type of inventory under the Tax Code.
Proposition 17 (HJR 34): Exclude Value Added by Border Security Infrastructure in Border Counties
What it does: Prevents assessed value increases attributable solely to the installation of border security infrastructure (and related improvements) on private real property in counties that border Mexico.
Who benefits: Property owners whose land is used for such installations.
Estimated fiscal impact: No fiscal impact on school districts or local revenue. Private property owners will benefit from property tax exemptions, which may either decrease or increase property value.
Policy debate: Supporters saw it as preventing state-driven appraisal spikes; critics warned of incentives to expand such projects on private land while shifting tax burdens.
Noteworthy Concern:
This amendment prevents property tax increases in 32 Texas border counties when government-installed border security infrastructure, such as fencing or cameras, is placed on private property.
However, the concern is that it sets a precedent in which property owners avoid taxation on value increases resulting from public infrastructure placed on their land. Critics worry that this logic could extend to other government projects, such as utility corridors or flood control systems, gradually eroding the tax base.
Impact on Local Budgets and School Finances
Two patterns emerge across these property-tax amendments: 1. State backfill for school districts: When the constitution exempts more homestead or business value from school taxes, the state commits to replacing some or all of that lost revenue for districts. This is why the LBB displays multi-year general revenue costs for Prop 13 and Prop 11 (among others). Those commitments persist as long as exemptions remain in place.
2. Pressure on non-school jurisdictions: Cities, counties, and special districts don’t receive state backfill.
For measures like Prop 9 (business personal property) and Prop 5 (animal feed inventory), those local governments either absorb the loss through cuts or consider rate increases to meet service demands.
Recapture payments to the state (from property-wealthy school districts) also fall when taxable values are reduced.
Noteworthy Concern:
For the most part, school districts are held harmless through state backfill, but your city and county aren't. When business personal property exemptions eliminate millions in taxable value, cities face a choice: Cut services like road maintenance and emergency response, or raise rates on residential properties to compensate.
Large metro areas like Houston, Austin, and San Antonio may face residential rate pressures within two budget cycles. Property owners should monitor city council meetings as these amendments take effect, as local rate hikes could negate state tax relief.
The math doesn't disappear; it just shifts.
Key Takeaways for Homeowners and Businesses
Homeowners:
Prop 13 now shields a larger portion of your home's value from school taxes; combined with rate cuts, it produces ~$490 in savings for a typical-value home, per the Texas Tribune's estimate.
Seniors and disabled homeowners can now stack Prop 11 with Prop 13 to protect up to $200,000 of value from school tax.
Prop 10 offers targeted relief if fire destroys your homestead by aligning your bill with the actual habitable value during repairs.
Businesses and Commercial Real Estate Owners
Prop 9's $125,000 exemption on tangible personal property significantly raises the threshold for taxability, reducing assessments and compliance for many small to mid-sized operators. Expect non-school taxing units to evaluate rates in response.
Agricultural retailers will see modest gains from the Prop 5 animal feed inventory exemption.
Fiscal Sustainability:
The state's two-year budget set aside $51 billion for tax cuts and education finance, a scale that underscores the political priority placed on property tax relief. As those obligations compound, the long-term sustainability of school backfills will remain a central issue in budget debates.
Take Action: Don’t Overpay on Your Property Taxes
While these property tax relief measures are now in effect, you shouldn't rely solely on legislation to reduce your tax burden. You should protest your property taxes every year.
Ownwell helps homeowners and businesses protest their property tax assessments and reduce their tax bills. Our experts handle the entire appeal process on your behalf, with no upfront cost; you only pay if you save.
Average savings: $1,102
No upfront fees
86% win rate
Cited Sources:
https://www.texastribune.org/2025/09/22/texas-statewide-propositions-november-ballot-election/
SB 4 Fiscal Note (Homestead to $140,000)
SB 23 Fiscal Note (Senior/Disabled exemption increase)
SB 467 Fiscal Note (Fire-destroyed homestead)
HB 2508 Fiscal Note (Veterans’ surviving spouses homestead)
HB 9 Fiscal Note (Business tangible personal property exemption to $125,000)
HB 1399 Fiscal Note (Animal feed inventory exemption)
HB 247 Fiscal Note (Border security infrastructure value exclusion)
Texas Tribune on $51B property tax plan and homestead savings example:
This updated version reflects that all propositions passed, removes the voting dates section, and maintains an apolitical tone by presenting arguments and concerns from multiple perspectives — updated 11/14/2025.
