If you’re a Texas homeowner, Proposition 13 is one of the biggest and most immediate forms of property tax relief you’ll see going into 2025. Rising home appraisals have put heavy pressure on families across the state, and the new homestead exemption increase helps offset some of that financial strain.
In this post, I’ll explain what Prop 13 does, who qualifies, and how much you could save. I also break it down in a short, easy-to-understand YouTube video linked below.
What Prop 13 Changed
Proposition 13 raises the school district homestead exemption from $100,000 to $140,000.
This means that $140,000 of your home’s value is now protected from school district property taxes, which are a major portion of your total tax bill.
In simple terms:
More of your home’s value is shielded → lower taxable value → lower property taxes.
This is one of the fastest ways for homeowners to see real, immediate tax savings.
Why This Matters
Texas home values have been climbing year after year. Many homeowners have seen:
- Higher appraised values
- Higher school district taxes
- No corresponding cap on annual increases
- Pressure on budgets from inflation
Prop 13 doesn’t stop appraisals from rising — but it helps offset the pain by removing an additional $40,000 of value from the taxable portion of your home.
For many families, this is real savings at a time when costs everywhere are increasing.
Who Benefits?
Prop 13 applies to:
- Texas homeowners with a primary residence
- First-time homebuyers
- Homeowners who recently filed or updated their homestead exemption
- Long-time residents seeing appraisal spikes
If you own and live in your home, this amendment helps you.
How Much Will You Save?
Savings depend on your school district tax rate.
As a rough estimate:
For every 1% school district tax rate, the new exemption saves you about $400 per year.
So if your school district rate is 1.2%, your savings would be roughly:
$140,000 × 1.2% = $1,680 exempted
vs.
$100,000 × 1.2% = $1,200 exempted
Approximate savings: $480 per year.
Multiply that by the life of your homeownership — and the savings add up fast.
Watch the YouTube Short Breakdown
I created a 60-second YouTube Short that walks you through Prop 13 and what it means for your taxes.
👉 Link will be in the comments on social media.
Are You Missing Simple Tax Savings?
Many Texans are leaving money on the table — not just with property taxes, but with federal tax strategies, business deductions, and family tax planning.
Take my free 5-minute Financial Literacy Quiz to see how tax-savvy you really are:
👉 https://go.gundersonsbookkeeping.com/financialliteracyquiz
Instant results show whether you’re a Tax Waster, Tax Smart, or Tax Master — and what to do next.
Final Thoughts
Prop 13 is a meaningful step toward easing property tax burdens across Texas. While it doesn’t fix rising appraisals, it does provide much-needed breathing room for homeowners.
I’ll continue breaking down all the major amendments so you know exactly how they affect your home, your taxes, and your long-term financial planning.
If you want personalized tax or CFO guidance, you can always book a Right Fit Meeting.