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Largest Tax Cut in Texas History Main Photo

Largest Tax Cut in Texas History

Written by: Marissa Saenz
Posted: July 25, 2023 by Coldwell Banker D'Ann Harper

On Thursday, July 13th, the Texas House and Senate reached a deal on a new bill to provide an $18 billion tax cut for Texas property owners and small businesses. Now signed by Texas Governor, Greg Abbott, the bill will be sent for final approval from Texas voters in November. 

Known as the Senate Bill 2, this bill will lower the school property tax rate for all homeowners and businesses as well as increase the homestead exemption from $40,000 to $100,000 for most homeowners. Property tax could drop more than 40% for some 5.7 million Texas homeowners and offers new tax savings for many other non-homestead properties.  

In order for this new plan to take into effect in the 2023 tax year voters must pass the plan in the constitutional election in November. If the bill is approved by Texas voters in the November constitutional election, the state is set to witness one of the largest tax cuts in its history, benefiting millions of homeowners and small businesses. Lowering the school property tax rate and increasing the homestead exemption will provide substantial relief to property owners, potentially leading to significant tax savings for many. As the plan takes effect in the 2023 tax year, it could have a positive impact on the economy and foster an environment of growth for Texas businesses and residents alike. 

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