What Enhanced Texas Homestead Exemptions and Property Tax Relief Will Be Available for Downsizing Homeowners in 2025?

In 2025, Texas homeowners will see a general homestead exemption increase to $140,000, with an additional exemption raising the total to $200,000 for those 65+, saving an average of $454–$938 annually.

Why This Matters for Homeowners in Belton & Temple

If you’re considering selling your current home and moving to something more manageable, 2025 could be the right time. New Texas homestead exemption laws (SB 4 & 23) are set to expand property tax relief, making ownership more affordable — especially for those eligible for the 65+ exemption.

As a family-run, local relocation specialist team, Home in Texas Team is helping Belton and Temple residents navigate these changes to make smart financial moves.

Understanding the New 2025 Texas Homestead Exemptions

In 2025, Texas will raise the general homestead exemption to $140,000 for all homeowners. For homeowners 65 and older, the exemption rises to $200,000.

• General homeowners: $140,000 exemption

• Homeowners 65+: $200,000 exemption

• Average savings: $454–$938 annually depending on local tax rates

🔗 Kiplinger – Texas Property Tax Relief Bill 2025
🔗 Mortgage Law – Homestead Exemption Increase 2025

This builds on existing protections, such as the property tax freeze for those 65+, which locks in school district taxes even if property values rise.

How This Affects Downsizing Decisions

Many homeowners reach a point where a smaller home, lower taxes, and less upkeep make sense. These new exemptions make the decision more financially attractive by:

• Lowering annual property taxes → freeing up monthly income.

• Reducing maintenance costs → smaller homes are easier to care for.

• Expanding relocation options → closer to family, healthcare, or amenities.

• Unlocking equity → selling a larger property can fund travel, healthcare, or investments.

Home in Texas Team helps guide you through selling, buying, and relocating — with experience in everything from luxury estates to low-maintenance homes.

Local Temple & Belton Market Trends (MLS Data)

The September 2025 MLS report shows favorable conditions for homeowners considering a move:

Takeaway:

• Sellers of larger properties can still capture equity.

• Inventory growth gives buyers more choices, especially in Temple.

• Belton remains competitive for luxury and relocation buyers, particularly near Lake Belton.

🔗 Unlock MLS – August 2025 Central Texas Housing Report
🔗 Texas Comptroller – Property Tax Exemptions

Smart Steps for Homeowners Planning a Move in 2025

If you’re planning to sell and purchase another home in 2025, here are some ways to maximize savings:

1. File your homestead exemption immediately after closing on your new home.

2. Consult a tax professional to ensure you qualify for all available exemptions.

3. Explore single-story or low-maintenance homes that align with your lifestyle.

4. Consider new construction for modern, energy-efficient options.

5. Work with relocation specialists — our team can simplify every step.

FAQ: Property Taxes & Downsizing in Texas

Q: How do I apply for the homestead exemption?
File with your county appraisal district. Proof of age (65+) is required if applying for the higher exemption.

Q: Does Texas still offer a property tax freeze for homeowners 65+?
Yes — the freeze applies to school district taxes and keeps them from rising after eligibility.

Q: When do the exemption changes take effect?
If voters approve in November 2025, the changes will apply for the 2025 tax year bills.

Final Thoughts

For Temple and Belton homeowners, 2025 brings real financial advantages to making a move. Expanded exemptions, a shifting market, and more choices in low-maintenance homes mean it’s a great time to explore your options.

👉 If you’re planning a move — whether upgrading, downsizing, or relocating — connect with Home in Texas Team, your family-run luxury and relocation specialists serving Central Texas.

Home in Texas Team – Family-Run Relocation Specialists & Luxury Agents in Belton/Temple, TX