Texas Property Tax Relief for Homeowners in 2024

Property taxes are often a struggle for homeowners to pay in full, all at once and unfortunately more than a hundred thousand Texans find themselves delinquent on their property taxes each year. Fortunately, Texas residents can breathe a sigh of relief. Texas policymakers spent 2024 working on an 18 billion-dollar tax cut package that assisted homeowners statewide. Read on to learn more about the 2024 Tax changes you could benefit from this year.

The Homestead Exemption Increase

Homeowners aren’t always aware that there are a few ways to reduce their property tax bill, the most common being tax exemptions offered by the state. While there are many exemptions that homeowners can qualify for, the most utilized exemption is the Homestead. Read our full guide on tax exemptions for homeowners here.

What is the Homestead Exemption?

If you own a residence, it’s your primary residence, and you aren’t currently claiming the exemption somewhere else, you qualify for the homestead exemption. Your home qualifies whether it’s a house, a condo, or even a manufactured home. The law originally required school districts to offer a $25,000 exemption on residence homesteads. 

In 2023, the Homestead Exemption was raised to $40,000. This means if you qualify for the homestead exemption you would remove $40,000 from the taxable value of your home, thus reducing your tax bill. In 2024, thanks to Gov. Dan Patrick, the homestead exemption was raised to $100,000 from the previous $40,000 as part of the multi-billion tax cut package. Homeowners who qualify from the exemption can now take $100,000 off their taxable home value for the most significant property tax savings the state has ever offered.

Additional exemptions for disabled homeowners and homeowners over the age of 65 are also being offered for even further tax reductions for those who really need it:

• The homestead exemption is $110,000 for Texas homeowners 65 and older.
• Homeowners with disabilities are also eligible for the $110,000 exemption, regardless of age.

The Circuit Breaker Credit

Rather than an exemption that reduces your overall ‘taxable value’, this tax credit directly reduces a filer’s tax liability — that is, the amount of tax a filer owes. This credit is available to both those who qualify for the homestead exemption and for those who do not. The tax credit also applies to some businesses. Essentially the circuit breaker credit limits how much your property taxes can increase in a certain period. Currently, it will cap yearly appraisal increases at 20%. This credit will continue until the end of 2026.

How Do I Take Advantage of The Homestead Exemption Increase?

If you believe you qualify for the Homestead Exemption increase reach out to your local county tax assessor’s office to inquire on your eligibility and have your tax bill updated accordingly. Homeowners need to apply for exemptions through their local districts to be eligible.

Johnson & Starr: Experts Who Care

The 2024 Texas property tax relief package brings significant changes that will benefit millions of homeowners and small business owners across the state. From the increased homestead exemption to the new circuit breaker tax credit, these reforms are designed to ease the financial burden on Texas property owners.

Still unsure about the new tax changes and also delinquent on your property tax bill? Contact Johnson & Starr today. Our team of property tax experts can help you navigate these new rules and ensure you’re taking full advantage of the available relief while also finding a property tax loan that fits your situation and keeps you in your home.