Texas property tax reform: Gov. Greg Abbott's 5-point plan explained – here's what homeowners need know

Texas property tax reform 2026: Texas Gov. Greg Abbott is calling on voters to take a more direct role in shaping the state’s property tax system, unveiling a five-point proposal that would limit local government spending, require supermajority approval for tax hikes, and potentially eliminate school property taxes for homeowners.

Texas Gov. Greg Abbott Unveils Five-Point Property Tax Reform Plan

Speaking at a Taxpayer Empowerment event in Houston on February 11, Abbott argued that earlier relief efforts, including $51 billion in property tax cuts passed during the most recent legislative session, have not stopped local governments from raising taxes, as per a report.

Abbott Proposes Caps on Local Government Spending Growth

Under his proposal, local government spending growth would be capped at population growth plus inflation or 3.5%, whichever is lower. Abbott pointed to Harris County as an example, saying the county increased property taxes by nearly 14% over the past two years.


He said, “What I say we have to do is ensure that every property taxing jurisdiction in the state of Texas must live within spending limits also. Let’s apply this to Harris County, Texas. In Harris County, Texas, that entity alone increased your property taxes by almost 14% in just the last two years,” as quoted by Yahoo News.

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Two-Thirds Voter Approval Requirement for Property Tax Hikes

The governor also proposed requiring any local property tax increase to receive two-thirds voter approval before taking effect.

Abbott said, “No property tax increase should ever be put into place without first being voted on by the voters, and it has to get a two-thirds vote to be able to pass," as quoted by Yahoo News.

Plan to Allow Rollback Elections with 15% Voter Petition

In addition, he wants to give voters the power to trigger rollback elections if 15% of registered voters in a jurisdiction sign a petition.

Changes to Property Appraisal Frequency and Homestead Cap

Abbott’s plan also targets the appraisal process. He called for property appraisals to occur once every five years instead of annually and proposed lowering the homestead appraisal growth cap from 10% to 3%. The lower cap would also extend to rental and commercial properties.

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Elimination of School Property Taxes for Homeowners Explained

Perhaps the most sweeping proposal would allow Texans to vote through a constitutional amendment on whether to eliminate school district property taxes for homeowners.

Abbott said, “The state should pay for public education, not your homestead,” adding that eliminating the school district portion of tax bills would cut property tax bills by more than half, as quoted by Yahoo News.

Analysts Question Financial Sustainability of Tax Elimination

However, not everyone is convinced the idea would be financially sustainable. As reported by The Dallas Express, some analysts and real estate professionals have raised concerns that replacing property tax revenue could require significant changes to the state’s funding structure.

Property Taxes Set to Dominate the 2026 Texas Governor Race

Abbott urged Texans to hold lawmakers accountable if they oppose the plan, saying voters should ensure their state representatives and senators support it. He said, “You need to hold accountable every state representative, every state senator, and make sure they support my plan,” as quoted by Yahoo News.

With property taxes expected to remain a key issue, the debate is likely to play a central role in the 2026 gubernatorial race.

FAQs

What is Gov. Abbott proposing for Texas?

A five-point plan to overhaul Texas’ property tax system.

What is Abbott asking voters to do?

Hold lawmakers accountable if they oppose the plan.