2024 Property Tax Law Updates!

Property Tax Law Updates for 2024

The recent Texas legislative session brought major changes to how much property owners are paying in property taxes. We partnered with the tax experts at Gill, Denson & Company to bring you a highlight of the most important updates.

Large Homestead Exemption Increase

The biggest and most noticeable change for homeowners is the increased homestead exemption passed with Senate Bill 2 (SB2). The already increased $40,000 (last increased in 2022) is now a substantial $100,000! This substantial increase will pass on large savings to property owners who qualify for the homestead exemption. Unlike the last increase in 2022, this increased exemption will automatically benefit homeowners aged 65+ or disabled by adjusting their capped tax payments.

Tax Rate Compression

Another valuable component of SB2 is the tax rate compression. The state is essentially paying a portion of your property tax bill to the local district, therefore compressing your tax rate. The compression equates to a 10.7-cent reduction. This means for every $100 of property value, you will save 10.7 cents.

Appraisal Caps

The third major change from SB2 is the appraisal cap pilot program. For the next three years, assessed values for non-homestead properties under $5 million will be capped at a 20% increase year over year. This means that if you own a rental property, your taxable value will not be able to increase by more than 20% from one year to the next.

Other Legislative Changes

There are a variety of minor changes that passed as well during the 88th legislative session.  These changes include new appraisal district board positions for large counties, an online system for filing binding arbitrations, broadened taxpayer liaison duties, a publicly available protest hearing database, and various other procedural updates.

What Else Can I Do to Lower My Taxes?

While these tax law updates will provide relief for most property owners, there is still a significant benefit to protesting your property’s value. Many property owners are overtaxed because appraisal districts use mass valuation methods to calculate your value. We recommend protesting your taxes every year, regardless of whether the taxable value went up or down.

We partnered with a local property tax firm, Gill, Denson & Company, that helped nearly 83% of their clients save money last year. They set up an exclusive discount code for our clients and friends to use when signing up. Enter LEGACYRE when using their Get Started form.