Greg Abbott to sign the property tax bill in Texas: What do you know star-news.press/wp

The governor of Texas, Greg Abbott, is expected to sign new legislation that provides property tax reduction to homeowners in the state, which is struggling with the high bills, on Monday.

If voters approved it in November, the measures paid by the Legislative Council in Texas led by the Republican Party will significantly reduce the cost of home ownership of millions of Lone Star State, including the elderly and the owners of the disabled, at a cost of more than 3 billion dollars.

It also will significantly reduce revenues for local governments to finance decisive public services, which the state will have to compensate.

Why do legislators in Texas want to reduce real estate taxes?

While Lone Star State is known for its relatively low tax environment, home owners already pay some of the highest property taxes in the country. It is imposed by local governments and used to finance schools, streets, roads, police and fire protection. The ruling body of each of these local governments determines its tax rate based on the estimated value of property.

But property taxes throughout the United States have risen with home values ​​since the epidemic, when the historically low mortgage rates have sparked madness of homes that have had a center in some of the most affordable states in the country, including Texas. Between 2019 and 2023 alone, medium property taxes in Lone Star State increased by 26 percent, according to Cotality data, which were previously working.

As of 2025, homeowners in Texas are paid the seventh highest real estate taxes in the country, according to Smartasset, with an effective rate of 1.63 percent. This is much higher than the national average, which is 0.90 percent, as the owner of Texas’s typical house pays $ 3,872 annually in property taxes.

Abbott has always been trying to reduce the burden of property tax on homeowners in Texas, as it signed in 2023, which was the largest reduction in property tax in the state’s history of $ 18 billion. But this intervention hardly helped many home owners who struggle with the high bills, and called on the Republican Governor to reduce real estate taxes as a priority during the legislative session for this year.

What is in the new package of real estate tax cuts?

The tax cuts package for property that is expected to be signed by Abbott on Monday at Robson Ranch Club in Denton has two projects recently passed by the House of Representatives and the Senate, which will lead to two constitutional amendments.

One draft law, SB 4, raised the current house exemption from 100,000 dollars to $ 140,000 for all home owners, while the other, SB 23, will collect it to $ 200,000 for those with disabilities or those between the ages of 65 years and over.

“I have always heard this mantra,” said Lieutenant Dan Patrick, after the two projects approved the Legislative Council in Texas.

SB includes a item that ensures that educational areas will not lose funding due to low property taxes, in an attempt to respond to the cash that the cuts will harm public services. It will be up to the state to raise the difference – estimated at $ 3.5 billion.

What happens after Abbut falls legislation?

In order to implement the constitutional amendments approved by the legislation, voters will have to support the increase in the exemption from the home in November.

Senator Texas Paul Pitcourt, R-Houston, who presented the legislation, will attend the signing ceremony on Monday. He said he hoped that there will be a “record by the public” to obtain these “devoted” tax cuts in the Texas Constitution.

Newsweek Call the Abbott office and the Bitnourt Office to comment via email on Monday morning.