Texas Property Tax Reforms: What You Need to Know About Governor Abbott’s Latest Plans

Property taxes have long been a hot topic in Texas, and Governor Greg Abbott has made it clear that tackling this issue remains a top priority. Since taking office in 2015, Abbott has worked with the Texas Legislature to implement significant property tax reforms, but many Texans still feel the burden of rising taxes. Now, in the 89th Legislative Session, Abbott is doubling down on efforts to ensure that homeowners and small businesses receive meaningful relief.

Let’s take a closer look at the past reforms, the challenges that remain, and what’s next for Texas property taxpayers.

The Progress So Far: A Look at Abbott’s Property Tax Reforms

Over the past several years, Texas lawmakers have passed measures aimed at reducing property taxes and increasing transparency. Some of the most notable changes include:

• Over $40 billion in property tax relief, including an $18 billion tax cut in the last legislative session.
• A tax rate compression framework for school district maintenance & operation (M&O) tax rates to lower school property taxes.
• Stricter limits on local governments, ensuring cities, counties, and special districts cannot raise property taxes without voter approval.

However, despite these efforts, many Texans haven’t felt the relief due to local taxing authorities continuing to increase property tax rates. This has led to frustration and calls for stronger protections against rising property taxes.

New Property Tax Reforms on the Horizon

Recognizing that more needs to be done, Governor Abbott is pushing for additional measures to protect Texans from skyrocketing property tax bills. His plan includes:

1. Enhanced Transparency for Property Taxpayers

Abbott wants to make property tax information more accessible and easier to understand so that homeowners are fully informed about how their taxes are calculated and where their money is going.

2. Increasing the Homestead Exemption

Last session, voters approved an increase in the homestead exemption from $25,000 to $110,000 for seniors. Abbott is committed to expanding this relief further to ease the tax burden on homeowners.

3. Using the Budget Surplus for Property Tax Relief

Texas has a budget surplus, and Abbott is calling for at least $10 billion of it to be allocated toward further property tax cuts.

4. Speeding Up School Tax Rate Compression

School property taxes make up a major portion of homeowners’ tax bills. Abbott aims to accelerate efforts to lower M&O tax rates, providing broad relief for all property owners.

5. Protecting Small Businesses

• Increasing the business personal property tax exemption to $100,000, helping small businesses keep more of their revenue.
• Capping property value increases at 20% for properties valued up to $5 million to prevent extreme tax hikes.

6. Eliminating Local Taxing Authorities’ Loopholes

Local taxing entities, such as Harris County, have been criticized for using loopholes to continue raising taxes. Abbott is calling for a new rule:

✅ All tax increases must receive two-thirds voter approval—no exceptions.

✅ Local bond and tax rate elections must take place in November, when more Texans turn out to vote.

Beyond Property Taxes: Housing Affordability & Permitting Reform

Property taxes aren’t the only issue—affordable housing is also a growing concern in Texas. Governor Abbott is supporting efforts to:

🏡 Cut regulations and speed up permitting to encourage faster home construction.
🏡 Introduce a one-year tax exemption on home improvements, such as heating and air conditioning upgrades, to help homeowners save money.

The Bottom Line: Will These Reforms Make a Difference?

Governor Abbott has made it clear: Texans should not have to pay excessive property taxes just to keep their homes and businesses running. His latest proposals aim to close loopholes, increase transparency, and ensure that tax cuts actually reach the people who need them most.

However, these reforms will depend on legislative approval and voter support. With rising costs still affecting homeowners, the outcome of these proposals could have a significant impact on the financial well-being of Texans across the state.

What Do You Think?

Do you support these property tax reforms? Are they enough to bring real relief to Texas homeowners and small businesses? Share your thoughts in the comments!

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Kristen Smith, Realtor Best Realtor in San Antonio