On February 11, Gov. Greg Abbott laid out a five-point proposal to overhaul Texas’ property tax system during a Taxpayer Empowerment event in Houston, Fox 26 Houston reported.
Abbott said prior relief efforts, including $51 billion in property tax cuts approved in the most recent legislative session, have not prevented local governments from increasing taxes.
The governor’s proposal includes the following five components:
1. “Common Sense” Local Spending Limits
Abbott proposed limiting local government spending growth to population growth plus inflation or 3.5%, whichever is lower.
“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,” Abbott said.
2. State-Mandated Two-Thirds Voter Approval For Tax Increases
Abbott said any local property tax increase should require two-thirds voter approval before taking effect.
“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,” he said.
3. Empower Voters To Roll Back Taxes
The governor proposed allowing voters to trigger a rollback election if 15% of registered voters in a jurisdiction sign a petition.
4. Create Appraisal Predictability And Lower The Cap
Abbott called for requiring property appraisals once every five years instead of annually and lowering the homestead appraisal growth cap from 10% to 3%. The cap would also apply to rental and commercial properties.
5. Eliminate School Property Taxes For Homeowners
Abbott said voters should decide through a constitutional amendment whether to eliminate school district property taxes for homeowners.
“The state should pay for public education, not your homestead,” he said, adding that eliminating the school district portion of tax bills would cut property tax bills by more than half.
As previously reported by The Dallas Express, some analysts and real estate professionals have questioned whether fully eliminating property taxes is financially sustainable, citing estimates that replacing the revenue could require significant changes to state funding structures.
Abbott also urged voters to hold lawmakers accountable if they oppose the plan.
“You need to hold accountable every state representative, every state senator, and make sure they support my plan,” he said.
Property taxes are expected to remain a central issue in the 2026 gubernatorial race.
