Texas property tax reform has become a pressing issue, as homeowners across the state face rising bills despite repeated promises of relief. Since 1998, Texas property tax levies have increased by over 1,300%, rising from $18.7 billion to $81.4 billion in 2023. While population growth and inflation played a role, the increase far outpaces both. Here’s how Texas taxes have changed across counties, cities, schools, and special-purpose districts over the last 25 years.
Source: Texas Policy Research, via Texas Comptroller of Public Accounts
So, each time you hear a Texas lawmaker announce “historic property tax relief,” you might feel a twinge of hope — followed by the same sinking feeling when your bill shows up in the mail and it’s higher than last year’s. Again.
So what’s going on? Why do we keep hearing that help is on the way — while our wallets keep feeling lighter?
Let’s break this down plainly, because the problem is real, the confusion is widespread, and the numbers don’t lie.
What Is a Homestead Exemption, and Why Does It Matter?
When you own a home in Texas and live in it as your primary residence, you’re eligible for a homestead exemption. That means a portion of your home’s appraised value (what the county says it’s worth) is not taxed by your local school district. Here’s a simplified example:
If your home is appraised at $300,000 and the exemption is $100,000, you’re only taxed on $200,000.
So, when lawmakers say they’re raising the exemption, that sounds like good news. And in theory, it is. But there’s a catch. Several, actually.
Property Tax Collections Keep Rising — Even As Exemptions Go Up
Texas has raised the homestead exemption multiple times:
- 1997: $15,000
- 2015: $25,000
- 2022: $40,000
- 2024: $100,000
Now proposed: $140,000 for most / $200,000 for seniors and those with disabilities
Yet during that same time, Texas property tax collections have exploded, especially for school districts, the largest portion of your bill. Just look at the data:
In 1998, total property tax levies were around $20 billion. By 2022, they had ballooned to over $80 billion. That’s a quadrupling of taxes, even though exemptions were increasing along the way. So what gives?
The Three-Card Monte of Texas Property Taxes
Raising the exemption is only one part of a very complex equation. Here’s why it doesn’t fix the problem:
- Appraisal Values Keep Rising: Texas uses market-based appraisals. As home values go up, your taxable value goes up, even if your exemption gets larger. In a hot housing market, your savings vanish almost instantly.
- Taxing Entities Can Adjust Rates: Even when the state mandates lower school tax rates, local districts can raise theirs, or issue bonds, or find ways to keep revenue stable — or growing.
- State Funding Formulas Are Opaque: When the state increases the homestead exemption, it promises to make up the difference to school districts. But this often happens through complicated funding formulas that don’t always result in savings for the homeowner. Some districts still raise taxes to meet their needs.
- No Limit on Total Tax Bill: There is no real cap on how much your total property tax bill can grow — even with limits on rates. The state limits how fast values can rise (10% cap per year on homestead value), but not the total amount of tax you pay.
In short:
“They give you a bigger exemption with one hand — and take it back with higher values or rates with the other.”
Why the System Was Built This Way
Texas doesn’t have a state income tax. Property taxes are the main way local governments fund services like:
- Public schools
- Roads and infrastructure
- Police and fire departments
That sounds reasonable. But without strict controls, it’s become a bloated and unaccountable system. Voters don’t realize that local boards, appraisal districts, and funding formulas are all part of the game — and they’re losing.
What the Chart Really Shows
The chart above has been shared widely on social media — from Texas Policy Research — and, it shows a clear trend: Every time the exemption goes up, total tax collections go up even more. Red is school taxes. Yellow, blue, and green are counties, cities, and special districts. Every color is going up. That’s because the system itself has no hard brakes — only soft nudges. This is why some people have stopped asking for “relief” and are now demanding reform or outright replacement.
Reform vs. Relief: What’s the Difference?
Relief = Temporary savings that reduce the bill for a short time, like exemptions or rate cuts.
Reform = Structural change to the system so that the problem stops repeating.
Texans are getting tired of “relief” that evaporates after one tax cycle. Real reform would look like:
- A cap on total property tax bills, not just appraised value
- Replacing property taxes with a consumption-based tax
- A true freeze on school district rates unless voters approve changes
- Or even abolishing property tax entirely — so you can truly own your home
So Why Do Politicians Keep Pushing These Bills?
Because raising the homestead exemption is politically popular and easy to promote:
- It sounds like a tax cut.
- It polls well with voters.
- It doesn’t require overhauling the entire system.
But until someone has the courage to rebuild the system from the ground up, Texans will keep hearing about “relief” while feeling more pain.
Bottom Line: If You Still Feel the Squeeze, You’re Not Imagining It
If your property taxes go up every year, even though lawmakers keep announcing relief — you’re not crazy. You’re living in a system designed to look like it’s helping, while quietly taking more from you year after year.
Final Thought:
Raising the homestead exemption helps in the short term — but without structural reform, it’s like putting a fresh coat of paint on a house with a crumbling foundation.
Texans deserve a tax system that’s fair, transparent, and stable — not a shell game that keeps shifting the burden while calling it “relief.”
The table below breaks down Texas property tax levies from 1998 through 2023, showing the annual amounts collected by Special Districts (SPD), Counties, Cities, and School Districts. It also includes the total levy each year, percentage change from the previous year, the state’s population, the Consumer Price Index (CPI), and a combined “Population + Inflation” indicator to provide context. This comprehensive data set illustrates how property tax burdens have evolved over time, highlighting trends in local government taxation across the state.
| Tax Year | SPD Levy | County Levy | City Levy | School Levy | Total Levy | % Change | State Population | CPI | Pop+Inf |
|---|---|---|---|---|---|---|---|---|---|
| 1998 | $1,883,080,138 | $2,619,628,810 | $2,970,251,205 | $11,228,753,261 | $18,701,713,414 | – | 19.7 million | 163 | – |
| 1999 | $2,063,101,426 | $2,646,645,113 | $3,179,745,715 | $11,917,859,505 | $19,807,351,759 | 5.91% | 20.0 million | 166.6 | 3.88% |
| 2000 | $2,888,621,638 | $2,873,452,097 | $3,504,092,996 | $13,301,083,561 | $22,567,250,292 | 13.93% | 20.9 million | 172.2 | 7.86% |
| 2001 | $2,651,610,746 | $3,246,024,017 | $3,847,976,857 | $15,026,153,737 | $24,771,765,357 | 9.77% | 21.3 million | 177 | 4.61% |
| 2002 | $2,867,735,633 | $3,507,842,313 | $4,117,776,708 | $16,262,058,353 | $26,755,413,007 | 8.01% | 21.7 million | 179.9 | 3.33% |
| 2003 | $3,084,209,240 | $3,774,835,414 | $4,366,866,303 | $17,198,357,427 | $28,424,268,384 | 6.24% | 22.0 million | 184 | 3.87% |
| 2004 | $4,579,488,574 | $4,089,744,284 | $4,518,242,703 | $18,428,882,515 | $31,616,358,076 | 11.23% | 22.4 million | 188.9 | 4.32% |
| 2005 | $3,617,024,497 | $4,402,504,841 | $4,863,361,658 | $20,186,781,140 | $33,069,672,136 | 4.60% | 22.8 million | 195.3 | 5.08% |
| 2006 | $3,970,005,374 | $4,937,454,611 | $5,286,535,198 | $20,811,154,860 | $35,005,150,043 | 5.85% | 23.4 million | 201.6 | 5.77% |
| 2007 | $4,512,711,637 | $5,352,522,462 | $5,895,031,685 | $18,796,244,425 | $34,556,510,209 | -1.28% | 23.8 million | 207.3 | 4.89% |
| 2008 | $4,952,792,863 | $5,863,884,238 | $6,406,453,878 | $21,124,726,350 | $38,347,857,329 | 10.97% | 24.3 million | 215.3 | 5.82% |
| 2009 | $5,075,623,262 | $6,206,092,979 | $6,750,119,590 | $21,372,981,931 | $39,404,817,762 | 2.75% | 24.8 million | 214.5 | -0.37% |
| 2010 | $5,276,695,747 | $6,440,625,172 | $6,933,361,668 | $20,771,086,819 | $39,421,769,406 | 0.04% | 25.2 million | 218.1 | 1.68% |
| 2011 | $5,473,297,092 | $6,609,646,843 | $7,073,711,065 | $21,194,857,860 | $40,351,512,860 | 2.36% | 25.6 million | 224.9 | 3.12% |
| 2012 | $5,693,207,885 | $6,927,844,214 | $7,331,298,968 | $22,608,245,316 | $42,560,596,383 | 5.48% | 26.1 million | 229.6 | 3.66% |
| 2013 | $5,913,402,725 | $7,351,248,054 | $7,645,870,777 | $23,726,086,179 | $44,636,607,735 | 4.88% | 26.5 million | 233 | 3.13% |
| 2014 | $6,255,397,414 | $7,759,402,367 | $8,009,127,270 | $25,180,847,591 | $47,204,774,642 | 5.76% | 26.9 million | 236.7 | 3.59% |
| 2015 | $6,723,906,502 | $8,232,151,926 | $8,538,282,297 | $26,816,683,072 | $50,311,023,797 | 6.58% | 27.4 million | 237 | 1.13% |
| 2016 | $7,027,046,089 | $8,429,512,739 | $8,846,170,230 | $28,309,127,218 | $52,611,856,276 | 4.56% | 27.9 million | 240 | 2.53% |
| 2017 | $7,335,267,801 | $8,767,080,244 | $9,282,496,005 | $29,537,624,038 | $54,922,468,088 | 4.39% | 28.3 million | 245.1 | 3.11% |
| 2018 | $7,843,102,145 | $9,284,695,114 | $9,767,310,529 | $30,964,589,382 | $57,859,697,170 | 5.35% | 28.7 million | 251.1 | 3.83% |
| 2019 | $8,909,719,354 | $10,423,290,377 | $11,146,148,401 | $36,065,930,857 | $66,545,088,989 | 5.29% | 29.0 million | 255.6 | 3.08% |
| 2020 | $9,486,152,671 | $11,290,528,493 | $11,963,476,245 | $37,759,657,465 | $70,499,814,874 | 5.94% | 29.2 million | 258.8 | 2.10% |
| 2021 | $10,400,963,921 | $11,694,130,764 | $12,495,940,682 | $38,946,142,782 | $73,537,178,149 | 4.31% | 29.6 million | 271 | 5.80% |
| 2022 | $10,409,180,231 | $12,797,292,169 | $13,634,471,866 | $43,949,038,027 | $80,789,982,293 | 9.86% | 30.0 million | 292.6 | 9.57% |
| 2023 | $12,723,403,616 | $14,174,524,582 | $15,049,228,872 | $39,496,580,852 | $81,443,737,922 | 0.81% | 30.5 million | 304 | 5.47% |
| TOTALS | $154,253,727,060 | $177,977,012,358 | $192,587,764,346 | $643,459,011,964 | $1,168,277,515,728 | 1334.46% | +10.8 million |
