Texas Sends $10 Billion Property Tax Relief Package to the Governor — Here's What San Antonio Homeowners Need to Know

If you own a home in San Antonio, Helotes, Converse, Schertz, Leon Valley, or anywhere else in Bexar County, you may want to pay close attention to what just happened in Austin. The Texas Legislature has sent a $10 billion property tax relief package to the governor, made up of three bills — SB 4, SB 23, and HB 9 — that together represent one of the most significant property tax actions the state has taken in recent memory.

The Texas Senate estimates that the average homeowner would save around $484 per year in 2025. For senior and disabled homeowners, those savings jump to an estimated $938 per year. Those are meaningful numbers for families in neighborhoods like Alamo Ranch, Stone Oak, Helotes, and the Northside ISD and Northeast ISD areas, where home values — and the tax bills that come with them — have risen sharply over the past several years.

It is important to understand that not everything in this package takes effect automatically. Portions of the relief, specifically the increases to the homestead exemption, must be approved by Texas voters in a November 2025 ballot election. That vote has not happened yet. If voters approve it, homeowners who have filed a homestead exemption on their primary residence would see their exemption amount increase, which directly reduces the taxable value of their home.

If you have not yet filed a homestead exemption with the Bexar Appraisal District, this is an excellent reminder to do so. The exemption is available to homeowners who own and occupy their home as their primary residence as of January 1 of the tax year. Filing is free, and it is one of the simplest steps any San Antonio homeowner can take to lower their annual tax bill, regardless of what happens with the November vote.

For homeowners who are 65 or older or who qualify due to a disability, the projected savings are even larger. Many residents in established neighborhoods on the South Side, the West Side, and communities like Kirby, Windcrest, and Universal City rely on fixed incomes, and a reduction of nearly $1,000 per year could make a genuine difference in their household budgets.

What does this mean if you are thinking about selling your San Antonio home? Lower carrying costs can make homeownership more attractive to buyers, which is a positive signal for sellers. If a buyer can see that their future tax burden may decrease, that removes one of the hesitations that has slowed some purchase decisions in recent years. Property taxes have frequently come up in buyer conversations, particularly for homes in higher-value ZIP codes like 78257 in the northwest or 78209 near Alamo Heights ISD.

For buyers, the potential savings are worth factoring into your budget planning, but do so carefully. The full relief is not yet law in its final form until the governor signs the bills, and the homestead exemption increase still depends on the November vote. Work with a lender and a knowledgeable real estate professional who can help you understand what your actual tax estimate looks like today so you are not caught off guard.

Renters may wonder whether any of this affects them. Property taxes are a real cost for landlords, and in a market like San Antonio — where rental activity is strong in areas like Southtown, Brooks City Base, and near the Medical Center — owners passing savings along to tenants would be welcome news. Whether or not that happens depends on individual landlords and market conditions, but reduced operating costs for rental property owners do not hurt the case for housing affordability over time.

The path forward has a few steps remaining. The governor must sign the bills. Then San Antonio and all Texas homeowners will be watching the November 2025 ballot, where the homestead exemption increase will need voter approval to become a reality. Turnout in local and state elections matters, and this is one of those moments where what happens at the polls has a direct impact on your household finances.

At 5 Star Real Estate, we stay current on the policy and market changes that affect homeowners, buyers, and sellers across the San Antonio area. If you have questions about how your property taxes factor into a buying or selling decision, or if you simply want to understand the local market better, we are here to help. Reach out to our team anytime.