Buying a home in Texas could come with a little extra financial relief under a newly filed bill that would give qualifying first-time homeowners a one-time property tax credit of up to $3,000.
House Bill 1130, filed Thursday by state Rep. Salman Bhojani, D-Euless, would allow eligible homeowners to reduce their property tax bill during the first tax year after purchasing their primary residence.
The proposal comes as Texans continue to grapple with housing affordability, rising insurance costs and other expenses associated with homeownership.
Under HB 1130, Texans could qualify for a one-time property tax credit if they purchase a home and have never previously qualified another property as their primary residence, also known as a residence homestead.
A residence homestead is generally a home someone owns and uses as their primary residence, rather than a vacation home or investment property.
That means eligibility would depend on a homeowner’s previous homestead status, rather than simply whether they’ve owned property before.
The credit would cover up to $3,000 or half of the homeowner’s property tax bill, whichever is less.
For example, someone with a $4,000 annual property tax bill could qualify for a $2,000 credit, while someone owing $8,000 could receive the maximum $3,000.
The credit would apply only once, during the first tax year following the year the home was purchased. It would not provide an annual tax break.
Homeowners would also need to apply through their local appraisal district and provide documentation showing they qualify.
Unlike a down payment assistance program, the proposal would not provide money upfront to help someone purchase a house.
Bhojani has been pushing for this particular form of property tax relief since his first year in the Texas Legislature.
In 2023, he introduced House Bill 5100, which proposed a similar credit for first-time homebuyers. The measure received a committee hearing but never advanced to a full House vote.
He revived the proposal in 2025 through House Bill 2133, alongside a proposed constitutional amendment. That effort also failed to become law.
The latest bill marks his third attempt to establish the credit.
Bhojani, who represents parts of Tarrant County, previously served on the Euless City Council and worked as an attorney and business owner. The state’s legislative directory also identifies him as a real estate investor.
The earlier proposals carried a potential cost to the state. In 2025, the Texas Legislative Budget Board estimated that HB 2133 would have a roughly $108.7 million negative impact on state general revenue-related funds during the 2026-27 budget period.
A new fiscal estimate for HB 1130 has not yet been established.
Texas already provides property tax exemptions to qualifying homeowners, including a homestead exemption that reduces the taxable value of their primary residence.
In 2025, Texas voters approved an increase in the school district homestead exemption from $100,000 to $140,000.
HB 1130 would work differently. Rather than reducing the value of a home used to calculate taxes, it would provide a one-time credit against the property taxes owed.
The proposal also comes amid broader concerns about housing affordability.
Texas faces a shortage of available homes, while rising insurance premiums and other expenses have added to the cost of owning a home.
Not anytime soon.
HB 1130 is only a proposal and would need approval from the Texas Legislature. It would also require voters to approve a corresponding amendment to the Texas Constitution.
If both measures pass, the law would take effect Jan. 1, 2028.
Until then, Texas homeowners would continue to receive only the property tax relief already available under existing law.
