What changed in the 2025 Texas Property Tax Code
The 89th Legislature changed more than 80 sections of the Property Tax Code in 2025, and voters approved the constitutional amendments behind the biggest ones on November 4, 2025. Several of the dollar amounts most likely to be tested are now different. These are the ones to know, with the old figure, the new figure and the section each comes from.
The amounts that changed
| Exemption | Was | Now | Section and act |
|---|---|---|---|
| School district residence homestead | $100,000 | $140,000 | §11.13(b); S.B. 4 |
| Additional, age 65 or older or disabled | $10,000 | $60,000 | §11.13(c); S.B. 23 |
| Income-producing tangible personal property | $2,500 | $125,000 | §11.145(b); H.B. 9 |
All three required a constitutional amendment, and Texas voters approved them on November 4, 2025. The two homestead changes apply to tax years beginning on or after January 1, 2025. The personal property change applies to tax years beginning on or after January 1, 2026.
Why these are the figures the exam wants
PSI's candidate information bulletin says the Property Tax Consultant examinations reference the 2025 Texas Property Tax Code beginning April 1, 2026. So the figures above are the ones a scored question would be written against. An answer of $100,000 for the school homestead exemption was right for the 2024 tax year and is wrong now.
This is worth a moment of care when you choose study material. A guide, a set of notes or a practice question written before the 2025 session will show the previous numbers, and it will show them just as confidently. The exemption amounts are easy marks on the exam, so they are an expensive place to learn the wrong figure.
School homestead exemption: $100,000 to $140,000
§11.13(b) now reads that an adult is entitled to an exemption from taxation by a school district of $140,000 of the appraised value of the adult's residence homestead. The narrow exception for certain entities operating under former Education Code chapters, which keeps $5,000, is unchanged.
Senate Bill 4 of the 89th Legislature made the change, conditioned on the constitutional amendment proposed by S.J.R. 2, which voters approved on November 4, 2025.
Age 65 or older and disabled homeowners: $10,000 to $60,000
§11.13(c) gives an adult who is disabled or 65 or older an exemption from school district taxation of $60,000 of the appraised value of the residence homestead. Read the question carefully on the exam: this amount is in addition to the general exemption in §11.13(b), not instead of it. A qualifying homeowner has both.
Senate Bill 23 made the change. The school tax ceiling in §11.26 continues to apply separately once a homeowner qualifies.
Business personal property: $2,500 to $125,000
§11.145(b) now exempts $125,000 of the appraised value of tangible personal property a person holds or uses for the production of income. House Bill 9 made the change for tax years beginning on or after January 1, 2026. The same bill added definitions of a "related business entity" and a "unified business enterprise" to §11.145(a), which stop one business from being split up to claim the exemption more than once at a single location.
H.B. 9 also changed rendition. Under §22.01, a person whose income-producing personal property at a location is worth no more than the exempt amount is generally relieved of rendering it, and may instead file a statement certifying that the person reasonably believes the value is not more than the amount exempted under §11.145.
Other 2025 changes worth knowing
| What changed | Detail | Section and act |
|---|---|---|
| Intangible personal property | Intangible personal property is not taxable. The former subsections setting out special rules for the intangibles of insurance companies and savings and loan associations were repealed. | §11.02; H.B. 22 |
| Applying for a refund | A new section, effective September 1, 2025: a person may, but is not required to, apply for a refund of taxes owed to the person if the refund is at least $20. | §1.072; S.B. 850 |
| Rendering business personal property | Rendition requirements were rewritten to work with the larger §11.145 exemption, including a certification option. | §22.01, §22.24; H.B. 9 |
Those are the changes most likely to turn into a scored question. They are not the whole list. Counting the sections of the Property Tax Code that carry a 2025 amendment in the Comptroller's 2025 edition gives more than 80, running from §1.06 through Chapter 313, and most are procedural rather than numeric.
One figure that is scheduled to change again
The circuit breaker limitation on non-homestead real property in §23.231, which caps the appraised value of qualifying property at 120 percent of last year's appraised value, expires on December 31, 2026 under §23.231(k). It still applies for the 2026 tax year. Treat it as current for the exam, and check it again if you test later.
Common questions
Which edition of the Tax Code does the exam use?
PSI's candidate bulletin says the examinations reference the 2025 Texas Property Tax Code starting April 1, 2026. Every figure on this page is quoted from that edition.
What is the Texas school homestead exemption for 2025?
$140,000 of the appraised value of an adult's residence homestead, under Tax Code §11.13(b). Senate Bill 4 raised it from $100,000, and voters approved the amendment on November 4, 2025.
How much is the over-65 homestead exemption in Texas?
An adult who is 65 or older or disabled gets an additional $60,000 school district exemption under §11.13(c), on top of the general $140,000 exemption. Senate Bill 23 raised it from $10,000.
What is the business personal property exemption in Texas?
$125,000 of the appraised value of income-producing tangible personal property, under §11.145(b). House Bill 9 raised it from $2,500, effective for tax years beginning on or after January 1, 2026.
Is intangible personal property taxable in Texas?
No. Tax Code §11.02(a) says intangible personal property is not taxable. House Bill 22 repealed the former subsections that set out special rules for the intangibles of insurance companies and savings and loan associations.
Try a question
Under the Tax Code the exam uses, an adult who is 65 or older is entitled to what additional school district exemption on a residence homestead, on top of the general homestead exemption?
- A$10,000
- B$25,000
- C$60,000
- D$140,000
Show the answer
C. $60,000
§11.13(c): in addition to the general exemption under §11.13(b), an adult who is disabled or 65 or older is entitled to a $60,000 exemption from school district taxation. S.B. 23 (89th Legislature, 2025) raised this from $10,000. Choice A is the old figure, which is what study material written before 2025 still shows. Choice D is the general exemption under §11.13(b), not the additional one.
Texas License Prep is not affiliated with TDLR or PSI. This page is a study aid, not legal or tax advice. The official statutes and rules control.