In El Paso County, expanded state homestead exemptions have left about 40% of homeowners owing no school property taxes in 2025 and 2026, a major shift in a region where relatively low home values have made the larger tax breaks especially significant.
Here's what to know
Central Appraisal District records reviewed by El Paso Matters showed how sharply the numbers changed.
Among El Paso County homeowners with homestead exemptions, just over 42,000 owed no school taxes in 2024. That climbed to more than 77,000 in 2025 and is projected to hit about 72,000 in 2026.
The increase followed a November 2025 vote in which Texans approved larger school-tax homestead exemptions.
The basic exemption went from $100,000 to $140,000, while the added exemption for homeowners 65 and older and for people with disabilities rose from $10,000 to $60,000.
El Paso's relatively lower home prices make those larger exemptions especially significant there. El Paso Matters noted that the median home sale price in El Paso was $280,000 in June 2026, compared with a statewide median of $342,900.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
Because school taxes usually account for the biggest portion of a property tax bill, falling under the exemption thresholds can wipe out that charge entirely.
Homesteads with taxable values below $140,000 owe no school property taxes, and the threshold rises to $200,000 for qualifying older adults and residents with disabilities.
More background
The size of the effect varies widely across the county.
Ysleta Independent School District is expected to have one of the highest shares of homeowners with no school property tax bill in 2026, at about two-thirds.
El Paso Matters explained that its lower average home values, combined with an additional 20% homestead exemption, help account for the figure.
Other districts are expected to see smaller shares.
Just over one-third of homeowners in El Paso ISD are projected to owe no school tax, compared with just under one-fourth in Socorro ISD. In several rural Lower Valley districts, the expected share runs from about two-thirds to three-fourths of homeowners.
Homes covered by the full Texas property tax exemption for veterans with a 100% disability rating from the Department of Veterans Affairs have also increased sharply.
In some cases, the exemption extends to surviving spouses. The number of El Paso County homes receiving that exemption rose from just under 10,000 in 2024 to almost 13,000 in 2026.
El Paso Matters acknowledged that part of that growth appeared to be connected to the federal PACT Act, which expanded eligibility for disability benefits.
Nationwide, the number of veterans with 100% disability ratings increased 90% between fiscal years 2021 and 2025.
What's being done?
When Texas expanded the school-tax exemptions, it included "hold harmless" provisions intended to replace the revenue school districts would lose.
Local districts say that, in practice, changes in the state's calculations caused that support to drop sharply in 2026.
Socorro ISD received $18 million less than expected, El Paso ISD $17 million less, and Ysleta ISD $10 million less, leading to budget adjustments for the 2026-27 school year.
The tax changes are also becoming part of local politics. Socorro and Ysleta voters will decide in the November 2026 general election whether to approve property tax increases.
For many voters who already owe no school taxes on their homes, those measures would not directly affect their tax bills.
City and county officials in El Paso are also contending with the financial effects.
More than $40 million in combined property tax revenue is projected to be forgone from homes using the 100% disabled veteran exemption, while state reimbursements have covered only a fraction of local requests.
The end result is lower bills for many homeowners, but harder budget choices for school districts and local governments trying to maintain dependable public funding.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
