Texas First-Time Homebuyer Property Tax Credit: HB 1130 Explained (2027)

Last updated: Nov. 13, 2026

Texas doesn't have a first-time homebuyer property tax credit today. House Bill 1130, filed Nov. 12, 2026, would create a one-time credit of up to $3,000 (or half your bill, if less) in the first tax year after you buy. It needs the Legislature and a statewide constitutional amendment vote, and wouldn't start before Jan. 1, 2028.

What is the Texas first-time homebuyer property tax credit?

Rep. Salman Bhojani (D-Euless) filed House Bill 1130 and House Joint Resolution 75 on Nov. 12, 2026, ahead of the 2027 legislative session. According to the bill text, the credit would be a one-time reduction in the property taxes on the first home a person buys and claims as their residence homestead.

It's a credit against your tax bill, not an exemption from your home's value. It wouldn't change your appraised value, and it would apply for one year only.

How much would the HB 1130 credit be worth?

The bill sets the credit separately for each taxing unit (school district, county, city and others). For each one, the credit is the lesser of:

• That unit's share of $3,000, based on its portion of your total bill, or
• Half of the taxes that unit levies on your home

How the formula plays out (illustration of the introduced text, not an available benefit):

• $2,000 total bill: half is $1,000, so the credit would be $1,000
• $4,000 total bill: half is $2,000, so the credit would be $2,000
• $6,000 total bill: half and the cap are both $3,000
• $8,000 total bill: the $3,000 cap applies

Assuming every levy qualifies, the combined result is the lesser of $3,000 or half the total bill, even though the bill calculates each taxing unit’s share separately (proposed Section 31.039(c)).

Who would qualify?

• You bought the home. The credit applies in the first tax year after the year of purchase.
• It's your residence homestead. The home must qualify under Tax Code Section 11.13.
• It's your first homestead. You can't have previously qualified any property as your residence homestead. Under the introduced text, the test is a prior homestead, so owning a rental or land you never claimed as a homestead wouldn't by itself rule you out.
• You apply. You'd file an application and affidavit with your county appraisal district by the homestead exemption deadline for that year, including late-filing provisions.

The chief appraiser would approve or deny the credit for each taxing unit. A denial could be protested to the Appraisal Review Board (ARB) the same way as a denied homestead exemption.

When would the credit take effect?

The credit is not available now. The Legislature convenes Jan. 12, 2027. HB 1130 would take effect Jan. 1, 2028, and only if voters approve the HJR 75 constitutional amendment, which needs a two-thirds vote in each chamber to reach the ballot. The introduced text includes an effective-date clause referring to a "Regular Session, 2026," an apparent drafting error that could be fixed later.

HJR 75 would also let the Legislature reimburse local governments for the revenue they lose to the credit. HB 1130 adjusts the state's school-funding value study so districts aren't treated as wealthier on credited taxes.

What can new Texas homeowners do right now?

• File your homestead exemption. Apply with your appraisal district (Comptroller Form 50-114). School districts must exempt $140,000 of a qualifying homestead's value. Our Texas homestead exemption guide and the Comptroller's exemptions page cover the details.
• Pay your 2026 bill on time. 2026 Texas property taxes are generally due by Monday, Feb. 1, 2027, because Jan. 31 falls on a Sunday (Tax Code §31.02 and §1.06).
• Watch your notice of appraised value. Notices go out in spring. If your value looks high, you can protest it to the ARB.
• Know the 2027 protest deadline. It's generally Monday, May 17, 2027 (May 15 falls on a Saturday), or 30 days after your notice is delivered, whichever is later (Tax Code §41.44 and §1.06).

Our roundup of 2027 school property tax bills covers other relief proposals, and the Harris County property tax protest guide walks through a local value protest and ARB hearing. Owners can file a protest themselves or authorize an agent; here's how a Texas property tax consultant fits into the ARB process.

TaxDrop’s take: budget using today’s rules

A proposed credit should not go into your closing budget as money you can count on. Check the home’s current exemptions, ask how the taxable value may change after purchase, and set aside funds for the actual bill. A homestead exemption reduces taxable value; this proposal would reduce a tax charge for one year. Those are different protections.

Frequently asked questions

Is there a first-time homebuyer property tax credit in Texas?

Not yet. House Bill 1130, filed Nov. 12, 2026 by Rep. Salman Bhojani, would create a one-time credit of up to $3,000. It still has to pass the Legislature, and voters would have to approve a constitutional amendment (HJR 75).

How much would the HB 1130 credit be?

The credit is capped at $3,000 total, split among your taxing units in proportion to their share of your bill, and no single taxing unit's credit can be more than half of the taxes it levies on your home.

Who would qualify for the HB 1130 credit?

A person who buys a home, qualifies it as their residence homestead, and has never qualified any other property as a residence homestead before. You'd apply with your county appraisal district and sign an affidavit.

When would the first-time homebuyer credit start?

The bill would take effect Jan. 1, 2028, and only if voters approve the matching constitutional amendment. The credit applies in the first tax year after the year you buy.

Can I get the credit more than once?

No. The bill says a person who has received the credit can't receive it again in a later year.

What can new Texas homeowners do right now?

Apply for the residence homestead exemption with your appraisal district. School districts must exempt $140,000 of a qualifying homestead's value under Tax Code Section 11.13. You can also protest your appraised value to the Appraisal Review Board (ARB); the 2027 deadline is generally Monday, May 17, 2027, or 30 days after your notice is delivered, whichever is later.

Sources: HB 1130 bill history (Texas Legislature Online); HB 1130 introduced text; HJR 75 bill history; KPRC Click2Houston; The Texas Dispatch; Texas Tax Code Section 11.13; Texas Comptroller, property tax exemptions.