AUSTIN – The Texas House passed its $17.3 billion property tax relief bill Friday, which it says is the largest tax cut in the state’s history.
House Bill 2 establishes a 5 percent annual appraisal cap on all property types. It also lowers school district taxes—typically the largest portion of a homeowner’s tax bill—by compressing the tax rate by 25 cents by 2025.
The bill will save Texans who own a $350,000 home—the average home price in Texas according to the Texas Real Estate Research Center—$542 in 2024 and $733 in 2025.
In addition, the longer a homeowner stays in the house, the greater the benefit, per the bill.
The Texas Senate passed its own property tax relief bill last month. Their version favors homestead exemptions over appraisal caps.
Lawmakers have roughly six weeks remaining in the regular session to decide which property tax plan, if any, will move forward.