Governor Greg Abbott signed legislation on Aug. 9, 2023, delivering the largest property tax cuts in Texas history. The $18 billion property tax relief package includes provisions such as:

• Increasing the homestead exemption from $40,000, to $100,000.
• Protecting senior homeowners from being priced out of their homes.
• Doubling the small business exemption for the Texas Franchise Tax.
• Limiting appraisal increases to 20% per year for commercial and non-homestead properties under $5 million.
• Decreasing school district property tax rates by at least 10.7%.

For tax year 2023, this relief package will save the average Texas homestead owner over $1,200. Texas homestead owners over 65 or with a disability will see over $1,400 in savings.Up next, the package will go before voters in the November elections. If passed, an anticipated 5.7 million Texas homeowners are expected to benefit from this package, which would go into effect this year. Doeren Mayhew’s Houston tax advisors are here to help you understand how this impacts you and your business and help proactively plan for the upcoming filing season. To obtain assistance with your tax planning needs, contact us today.