Texas Buyers: Big Tax Breaks Are Coming
- Kayla Sargent
- Jul 8
- 3 min read
🏡 What the New Texas Tax Bill Could Mean for Buyers—And Why It Might Feel Like 2020 All Over Again
If you’ve been waiting for the “right time” to buy a home in Texas, 2025 might just be your moment—especially if voters pass the new property tax relief bills this November. With lower holding costs, higher exemptions, and early signs of market adjustment, we’re looking at a setup that could mirror the opportunity-rich window buyers saw back in 2020. Let’s unpack it:
🔍 First, a Quick Recap: What’s in the Tax Bill?
If the bill passes:
Homestead exemption jumps from $100K to $140K.
Seniors and disabled buyers get an even bigger break: $200K exemption.
For a $325,000 home, your taxable value drops to $185K or less, slashing your school taxes.
Estimated savings? $500–$900+/year, depending on the buyer.
Now let’s break down why this matters in today's market...
🔁 Remember 2020? Let’s Talk Déjà Vu
In 2020, low interest rates and federal stimulus packages fueled massive buyer momentum. Homes were more affordable, and buyers could stretch their budgets further—even in competitive markets. We’re seeing similar signs now, but this time it’s not just interest rates—it’s tax reform.
Here’s how that plays out:
💸 1. Lower Taxes = Lower Monthly Payment
Let’s say you’re buying a $325K home in Montgomery County:
Before the bill: You pay school taxes on $225K.
After the bill: You pay school taxes on just $185K.That’s like cutting $40K off your tax base—and saving ~$500–$700/year.
💥 That’s not just money in your pocket—it could help lower your debt-to-income ratio and improve your mortgage approval odds.
🛑 2. Buyers Can Act Fast While the Market’s Leveling Out
Here’s what we’re seeing in mid-2025:
Higher inventory than the frenzy years.
Fewer bidding wars than in 2021–22.
Sellers offering incentives (rate buy-downs, closing costs).Add tax relief into the mix, and you’ve got serious buyer leverage.
In 2020, savvy buyers jumped in early. By 2021, prices had skyrocketed. If this tax relief passes, it could trigger similar demand—and buyers who wait may find themselves in a competitive market again.
👵 3. Huge Win for Seniors & Fixed-Income Buyers
If you’re 65+ or disabled, this bill is like a golden ticket. That $200,000 exemption means:
Lower upfront costs.
Long-term affordability.
More room in the budget for medical, travel, or retirement savings.
Seniors could see up to $900/year in relief—not to mention homestead cap protections already in place.
🏢 4. Bonus: Business-Friendly = Local Growth = Higher Home Values
The bill also raises the business personal property exemption to $125K, which means:
Small businesses pay less.
More room for growth and hiring.
Neighborhoods see economic benefits—and home values follow.
📈 The Bottom Line: What It Means for You Texas Buyers
If this bill passes in November, here’s what you should know:
Buyer Type | Key Benefit |
First-time buyers | Lower tax burden = easier approval |
Move-up buyers | Higher exemptions = more flexibility |
Seniors & disabled | Biggest tax breaks + long-term savings |
Investors (owner-occupied) | Better ROI on rental strategies |
💬 Final Thoughts from the Front Lines
As real estate agents, we’re watching this market closely—and it’s clear: if you buy before the surge and lock in tax benefits, you could be sitting in a sweet spot like buyers were in 2020. Waiting until after the bill passes might mean more competition, less inventory, and fewer deals.
Our advice? Start the conversation now. Get pre-approved, explore neighborhoods, and be ready to move quickly if the bill passes.
🗳️ What’s Next?
The bill goes to Texas voters in November 2025. If approved, exemptions go into effect for 2026 tax bills—but smart buyers will act now, knowing what’s coming.
📲 Thinking of buying in the next 6–12 months? Let’s chat about your budget, tax impact, and how to lock in the best possible deal before the rush.
Let’s make your 2025 feel like the best parts of 2020—without the toilet paper shortages.
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