Big Win for Texas Homeowners: Governor Abbott Signs $10 Billion Property Tax Relief Bill

Governor Abbott Signs The Historic Property Tax Relief Bill on June 16th, 2025

In a move that could bring substantial savings to homeowners and businesses across Texas, Governor Greg Abbott signed a $10 billion property tax relief package into law on June 16, 2025. While this marks a landmark victory for taxpayers, the reforms won’t take effect unless voters approve them in the upcoming November 2025 constitutional amendment election.

At ILE Homes, we understand the financial pressures our clients face—especially in today’s market. That’s why this development is one to watch closely.

What’s Included in the Tax Relief Package?

The relief package is built on a series of bipartisan-supported bills that together promise significant annual savings:

• Homestead Exemption Increase (Senate Bill 4):Raises the exemption for school district property taxes from $100,000 to $140,000.Estimated savings: ~$484–$500 per year for average homeowners.

• Senior & Disabled Homeowner Relief (Senate Bill 23):Boosts the additional exemption from $10,000 to $60,000.Estimated savings: ~$900–$950 annually for seniors and disabled homeowners.

• Business Personal Property Exemption (House Bill 9):Increases the exemption threshold from $2,500 to $125,000.Estimated savings: ~$2,499–$2,500 per year for qualifying businesses.

Combined with earlier tax initiatives, the average Texas homeowner could see total annual savings of up to $1,760.

What This Means for the Single-Family Rental (SFR) Industry

While homestead exemptions don’t apply to investment properties, this bill still holds strategic significance for the SFR sector:

• Indirect Market Support: Reduced property tax burdens on owner-occupied homes can boost overall affordability, freeing up household budgets and improving local economic confidence—factors that positively impact rent collection and tenant stability.

• Senior Tenant Stability: The increased exemption for seniors and disabled individuals may allow more aging tenants to remain financially independent and housing secure, lowering turnover and late payments in age-diverse rental portfolios.

• Small Business Incentive: Investors operating under LLCs or property management firms may benefit from the increased business personal property exemption, especially if they maintain equipment, furnishings, or vehicles as part of operations.

• Policy Predictability: Perhaps most importantly, this bill signals a pro-landlord, pro-growth stance by state leadership. Stable and investor-friendly policy encourages continued institutional and individual investment in Texas SFR markets.

In short: While the direct dollar impact may vary for investors, the broader implications—greater affordability, stronger housing demand, and consistent tax policy—make Texas an even more attractive market for single-family rental growth.

What Happens Next?

Before any of this goes into effect, Texas voters must approve the constitutional amendments in the November 2025 election. Until then, this is a promise on paper—but one that could bring real change to your bottom line in 2026 and beyond.

ILE Homes' Take

At ILE Homes, we’re committed to helping our investors, tenants, and homeowners understand how policy changes impact real estate decisions. This new legislation could improve affordability, strengthen cash flows for investors, and boost confidence in Texas' housing market.

We’ll continue monitoring developments and sharing updates that matter to our community.