What the November 2025 Texas Property Tax Vote Really Means for Your Wallet (And Why Ellis County Just Got More Attractive)

The Bottom Line First

On November 4, 2025, Texas voters approved massive property tax relief that takes effect immediately for your 2025 tax year. Here’s what you need to know:

For all homeowners: Your homestead exemption just jumped from $100,000 to $140,000, saving you approximately $350-$500 annually.

For homeowners 65+ or with disabilities: You now get a combined $200,000 exemption (the $140,000 general exemption PLUS an additional $60,000) potentially saving you $900+ per year.

For small business owners and landlords: The business personal property tax exemption skyrocketed from $2,500 to $125,000.

But here’s what nobody’s telling you: these aren’t just savings, they’re a complete reset of the affordability equation in North Texas. And I’m going to show you exactly how to leverage it.

Let’s Talk Real Numbers in Ellis County

Forget “average Texas homeowner.” Let’s look at actual Ellis County scenarios because that’s where the rubber meets the road.

Scenario 1: First-Time Buyer in Waxahachie

You’re looking at a $325,000 home in Waxahachie. Let’s say the combined property tax rate is 2.6% (typical for many Ellis County properties when you add school district, county, city, and special districts).

Old math with $100,000 exemption:

• Taxable value: $325,000 – $100,000 = $225,000
• Annual taxes: $225,000 × 0.026 = $5,850
• Monthly escrow: $487.50

New math with $140,000 exemption:

• Taxable value: $325,000 – $140,000 = $185,000
• Annual taxes: $185,000 × 0.026 = $4,810
• Monthly escrow: $400.83

Your savings: $1,040 annually or $86.67 per month

Now here’s where it gets interesting. That $87/month doesn’t sound life-changing, but talk to any mortgage lender and they’ll tell you that reducing your monthly housing cost by $87 increases your buying power by approximately $12,000-$15,000 depending on interest rates and your debt-to-income ratio.

Translation: You can now afford more house with the same monthly payment.

Scenario 2: Growing Family in Midlothian

You bought a $450,000 home three years ago. Your property value has appreciated (because North Texas…), and you’re feeling the tax pressure.

Old exemption savings: $450,000 – $100,000 = $350,000 taxable
New exemption savings: $450,000 – $140,000 = $310,000 taxable

At a 2.6% combined rate, you’re saving approximately $1,040 annually. Over the next 10 years you own this home? That’s $10,400 back in your pocket, money that can go toward your kids’ college fund, home improvements, or building your emergency savings.

Scenario 3: Retirees in Red Oak (The Real Winner)

This is where these changes become genuinely transformative. You’re 67 years old, living in a modest $280,000 home in Red Oak, and you’re on a fixed income.

Old combined exemption: $110,000 ($100,000 general + $10,000 over-65)
New combined exemption: $200,000 ($140,000 general + $60,000 over-65)

Old taxable value: $280,000 – $110,000 = $170,000
New taxable value: $280,000 – $200,000 = $80,000

At that same 2.6% rate:

• Old annual taxes: $4,420
• New annual taxes: $2,080
• Annual savings: $2,340

But wait, there’s more. Texas already freezes school property taxes for homeowners 65+, meaning that school tax amount can’t increase even if your home value or tax rates rise. With a $200,000 exemption, many seniors with modest homes will pay virtually ZERO in school taxes, and their total property tax bills will drop dramatically.

For retirees on fixed incomes, this isn’t just tax relief, it’s the difference between staying in your home or being forced to sell because of rising tax burdens.

Why This Changes the Ellis County Value Proposition

Let’s connect some strategic dots that your average agent isn’t thinking about.

North Texas, particularly Ellis County, has been growing rapidly. We’ve got major developments coming , excellent school districts, reasonable commutes to Dallas and Fort Worth, and that small-town feel that families and retirees are craving.

But property values have been climbing. Fast. And property taxes have followed.

These new exemptions just made Ellis County significantly more affordable relative to closer-in suburbs where home prices are $100K-$200K higher. The math is simple:

A $350,000 home in Ellis County with a $140,000 exemption is taxed on $210,000.

A $450,000 home in closer-in Collin or Denton County with the same exemption is taxed on $310,000.

Same exemption. $100,000 difference in taxable value. That’s approximately $2,600 more in annual property taxes for a home that might only be 15 minutes closer to downtown Dallas.

Strategic insight: Ellis County just became the smart money play for buyers who want newer homes, great schools, and room to breathe, without the premium price tag AND with lower ongoing costs.

The First-Time Buyer Opportunity (And Why You Should Act in Q1 2026)

If you’re a first-time buyer who’s been on the fence, pay attention.

These tax changes take effect for 2025, which means your 2025 tax bills (typically due in January/February 2026) will reflect the savings. But here’s the strategic timing advantage:

Most buyers aren’t recalculating their affordability based on these changes yet. They’re still using old numbers. That means there’s a brief window where you can:

1. Get pre-approved using the NEW lower tax estimates (talk to your lender about this, many haven’t updated their calculators yet)
2. Increase your purchasing power by $10K-$15K without changing your monthly payment
3. Lock in a property before the spring 2026 market heats up and everyone realizes homes are more affordable

The buyers who move in Q1 2026 are going to have less competition and better negotiating leverage than those who wait until the spring rush.

What You Need to Do Right Now

For Current Homeowners

1. Verify your homestead exemption is on file

Go to your county appraisal district website (for Ellis County residents, that’s elliscad.com) and confirm your homestead exemption is active. If you already have it, the increased amount applies automatically, no new paperwork needed.

2. Check your driver’s license address

Your Texas driver’s license or ID must match your property address to maintain your homestead exemption. If you’ve moved or updated your address, make sure your exemption reflects your current primary residence.

3. Review additional exemptions

Are you 65+? Disabled? A veteran? You may qualify for additional exemptions beyond the general homestead. The over-65 and disability exemptions just increased from $10,000 to $60,000, that’s significant money.

4. Monitor your 2025 tax statement

When your property tax bill arrives (typically October-December for most Texas counties), verify the exemptions were applied correctly. Mistakes happen, and catching them early prevents overpayment. [1]

5. Consider protesting your valuation

Every Texas homeowner has the right to protest their property’s appraised value annually. The deadline is typically May 15 or 30 days after receiving your appraisal notice. If your home is valued higher than comparable properties in your neighborhood, file a protest. I’ve seen homeowners save hundreds or even thousands by successfully protesting inflated appraisals.

For Prospective Homebuyers

1. Recalculate your budget using new tax numbers

Talk to your lender about updating your affordability calculations with the new $140,000 homestead exemption. This could increase your purchasing power by $10K-$15K+.

2. Factor in total monthly costs accurately

When comparing homes, calculate the complete PITI (Principal, Interest, Taxes, Insurance). In Ellis County, total property tax rates typically range from 2.0% to 3.0% depending on your specific location and school district. I can provide you with exact rates for any property you’re considering.

3. Understand the 10% homestead cap

Once you file your homestead exemption, Texas limits how much your property’s appraised value (for tax purposes) can increase annually, maximum 10% per year, regardless of how much market values jump. This protection is HUGE in appreciating markets like North Texas. It means your property taxes grow predictably, not wildly.

4. File your homestead exemption immediately after closing

As of 2022, you can file for the homestead exemption as soon as you close on your home and move in, you don’t have to wait until the following year. File immediately to start your exemption and the 10% cap protection. The deadline to file is April 30, but don’t wait.

5. Work with an agent who understands the full financial picture

Property taxes are a huge part of homeownership costs in Texas, often bigger than your insurance payment. You need an agent who can show you not just the listing price, but the total cost of ownership including realistic tax projections based on current exemptions and rates.

The Investment Property Angle Nobody’s Discussing

Here’s a bonus insight for investors and landlords: Proposition 9 increased the business personal property tax exemption from $2,500 to $125,000. [2]

What does this mean in plain English? If you own rental properties, the furniture, appliances, and equipment in those properties may now be completely exempt from property taxes if their total value is under $125,000.

Previously, if you owned multiple rental properties with furniture and appliances, you were paying taxes on that business personal property. Now, unless you’re running a large-scale operation, those assets are likely exempt.

This is a significant cost reduction for small-scale landlords and a competitive advantage for Ellis County rental properties compared to markets in other states without similar exemptions.

Why Ellis County? Why Now?

I’ve been tracking North Texas real estate for years, and I can tell you that Ellis County is at a strategic inflection point.

The growth indicators are all flashing green:

• Major developments are bringing thousands of new homes and jobs
• Excellent school districts (Waxahachie ISD, Midlothian ISD, Red Oak ISD consistently rank highly)
• Reasonable commutes to Dallas and Fort Worth (30-45 minutes to downtown)
• Strong job market in surrounding areas (Amazon fulfillment centers, corporate relocations, medical facilities)
• Authentic small-town character that families and retirees are seeking
• Home prices still below closer-in suburbs while offering more space and newer construction

And now, with these property tax changes, the value proposition just got even stronger.

You can buy more house, in a great community, with excellent schools, reasonable commutes, and significantly lower ongoing costs than living closer to the urban core.

The Senior Retirement Strategy

If you’re approaching retirement or already retired, these tax changes create a compelling opportunity to establish yourself in Ellis County while the market is still reasonable.

With the combined $200,000 exemption, a modest home in the $250K-$350K range will have minimal property taxes, especially once your school taxes freeze at age 65. [3]

You’ll have:

• Low housing costs (lower purchase price + lower taxes)
• Access to quality healthcare (multiple hospitals within 30 minutes)
• Small-town community feel with big-city amenities nearby
• Room for family to visit (most Ellis County homes offer more space than urban alternatives)
• Predictable, stable tax bills that won’t eat into your fixed retirement income

Many retirees are being priced out of Collin County, Denton County, and Tarrant County as property values and taxes skyrocket. Ellis County offers an attractive alternative with comparable quality of life at a fraction of the cost.

The Competitive Advantage of Local Knowledge

Here’s something most agents won’t tell you: property tax rates vary SIGNIFICANTLY within Ellis County depending on which taxing jurisdictions your property falls under.

Two homes in Waxahachie could be a mile apart but have different tax rates depending on:

• School district boundaries
• City limits vs. ETJ (extraterritorial jurisdiction)
• Special districts (MUDs, PIDs, etc.)
• County vs. city services

An experienced local agent who tracks these nuances can save you thousands of dollars by helping you find properties in lower-tax pockets while maintaining the same quality of schools, services, and location.

I track this data obsessively because it matters. Two identical $350,000 homes can have a $500-$1,000 annual tax difference just based on which side of a school district line they fall on.

That’s real money. That’s what local expertise delivers.

Let’s Talk About Your Specific Situation

Here’s what I know: your situation is unique. Your budget, timeline, family needs, work location, school preferences, lifestyle priorities, they’re all different from the generic examples I’ve laid out here.

The tax changes create opportunities, but the RIGHT opportunity for you depends on your specific circumstances.

That’s where I come in.

I can:

• Calculate exact property tax projections for any home you’re considering
• Identify lower-tax pockets within your preferred areas
• Connect you with lenders who understand how to maximize these new exemptions in your pre-approval
• Show you neighborhoods and communities that match your lifestyle and budget
• Navigate the entire process from search to close, ensuring you understand every financial aspect

The North Texas real estate market moves fast. The buyers who succeed are the ones who have accurate information, strategic guidance, and a competitive advantage.

These property tax changes just gave you that advantage. The question is: will you use it?

Thinking about relocating to North Texas? Check out my North Texas relocation playbook

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Bobby Franklin – REALTOR®
Legacy Realty Group – Leslie Majors Team