Texas Senate Passes SB 10: What a Lower Tax Rate Cap Means for San Antonio Homeowners

If you own a home in San Antonio, Bexar County, or any of the larger surrounding cities, a bill moving through the Texas Legislature right now deserves your attention. During the second called special session, the Texas Senate passed Senate Bill 10 by a vote of 18 to 12. The bill would lower the voter-approval tax rate — the cap that triggers an automatic election before local governments can raise property taxes beyond it — from 3.5% down to 2.5% for cities and counties with populations over 75,000. Smaller jurisdictions would remain at the current 3.5% threshold.

So what does that actually mean for someone living in a home in Alamo Ranch, Stone Oak, the South Side, or anywhere else inside San Antonio's city limits?

Right now, the city of San Antonio and Bexar County can increase the amount of revenue they collect from property taxes by up to 3.5% before they are required to hold a voter-approval election. If SB 10 becomes law, that ceiling drops to 2.5%. In plain terms, local governments would need voter permission sooner if they want to collect more tax revenue than the previous year.

For homeowners, this is meaningful. Property tax bills in San Antonio have been a persistent concern, especially as home values rose sharply in recent years across neighborhoods like Helotes, Converse, Leon Valley, and Schertz. Even when tax rates stayed flat or dipped slightly, rising appraised values pushed bills higher. SB 10 does not directly cap appraisals, but it does put a tighter leash on how much additional revenue the city and county can collect without asking voters first.

If the bill becomes law, city and county budgets would face more pressure. That could translate into slower growth in city services, infrastructure spending, or staffing — tradeoffs that local elected officials and voters would ultimately have to weigh. But from a pure property tax standpoint, the intent of the bill is to slow the pace at which your annual tax bill can climb without your direct say.

For buyers shopping in San Antonio right now in late summer 2025, this bill adds a layer of optimism but also uncertainty. Buyers should still budget carefully for property taxes, because even a 2.5% cap on revenue growth does not guarantee your individual bill stays flat. Your appraised value is set separately by the Bexar Appraisal District, and that number can still rise. What changes is how much the taxing jurisdictions can collect in total before needing voter approval to go further.

If you are buying in a city like Universal City, Selma, Live Oak, or Converse — all of which sit within the San Antonio metro area — check whether those cities exceed the 75,000-population threshold. Cities under that number would stay under the current 3.5% cap if SB 10 passes as written. That distinction matters when you are comparing tax environments across different ZIP codes.

Sellers are not directly impacted by SB 10 in the short term, but a policy that credibly promises to slow tax growth could support buyer demand. Affordability in San Antonio has been squeezed from multiple directions, and anything that gives buyers more confidence about long-term carrying costs can help keep the market moving.

For renters, the connection is less direct but still real. Landlords who own rental properties inside San Antonio or in large suburban cities pay property taxes on those units. When those bills climb, some landlords pass the increases along through higher rents. A slower rate of tax growth could, over time, take some pressure off rental pricing — though many other factors drive what landlords charge, and renters should not expect an immediate change.

Homeowners in Northside ISD, Northeast ISD, and other large school districts should also know that school district property taxes follow a separate set of rules and are not directly governed by SB 10, which applies to cities and counties. Your total property tax bill has multiple line items, and this bill only addresses two of them.

SB 10 still needs to pass the Texas House before it can go to the governor. Nothing is final yet. But the Senate vote of 18 to 12 signals real momentum, and homeowners across San Antonio and Bexar County should track this closely as session continues.

If you have questions about how property taxes affect your buying power, what your estimated tax bill might look like on a home you are considering, or how to appeal your Bexar County appraisal, our team at 5 Star Real Estate is here to help you work through the numbers and make the most informed decision possible.