Could Texas Property Taxes Change Under the New Governor? What Houston Homeowners Need to Know

Imagine waking up tomorrow and discovering that one of your largest homeownership expenses could eventually be reduced—or even eliminated.

Not your mortgage payment. Not your homeowners insurance. Your property taxes.

Following the November 3, 2026 election, Texas is preparing for a change in statewide leadership, and property tax reform is one of the issues attracting attention.

Governor-elect Gina Hinojosa has proposed reducing residential property taxes, with the eventual goal of eliminating them. Lieutenant governor-elect Vikki Goodwin has also called for reforms to the way Texas funds public services and provides property tax relief.

But there’s an important question that every Texas homeowner should be asking:

What would these proposals actually mean for your property tax bill—and how much of the relief being discussed is already law?

Whether you own a home in Houston, Katy, Cypress, Richmond, Fulshear, Sugar Land, or elsewhere in Texas, understanding the answer could help you make more informed financial and real estate decisions.

Let’s examine what has already changed, what the incoming leadership is proposing, and what homeowners should pay attention to next.

Texas Elected New Leadership. Will Your Property Taxes Change?

On November 3, 2026, Texas voters elected Gina Hinojosa as the state’s next governor, defeating incumbent Governor Greg Abbott.

Vikki Goodwin also defeated incumbent Lieutenant Governor Dan Patrick.

According to the Texas Secretary of State’s election reporting, with all polling locations reporting as of November 4, Hinojosa received approximately 5.23 million votes compared with Abbott’s 4.52 million. Goodwin received approximately 5.08 million votes compared with Patrick’s 4.48 million.

These were reported election results as of November 5, ahead of the completion of the formal certification process.

Hinojosa and Goodwin are scheduled to assume their new offices in January 2027. Until then, Abbott and Patrick remain Texas’ sitting governor and lieutenant governor.

The leadership transition matters because the governor and lieutenant governor have significant influence over the state’s legislative priorities.

The governor can recommend legislation, sign or veto bills, and help shape the state’s budget priorities. The lieutenant governor presides over the Texas Senate and has considerable influence over its legislative process.

However, neither official can simply announce that property taxes have been eliminated.

A major change to Texas’ property tax system would generally require legislation. Certain changes could also require a constitutional amendment approved by Texas voters.

An election result can change the direction of policy discussions, but it does not automatically change the amount homeowners owe in property taxes.

That distinction is especially important when you’re trying to plan your housing expenses.

Source: Texas Secretary of State — November 2026 Election Results

Before Discussing Reform, Understand How Texas Property Taxes Work

One of the most common misunderstandings about property taxes in Texas is the belief that the state government directly charges homeowners a statewide property tax.

It doesn’t.

Texas has no statewide property tax. Instead, property taxes are imposed by local taxing units.

Depending on where you live, your property tax bill may include taxes from several different jurisdictions.

These can include your school district, county, city, municipal utility district (MUD), and other special-purpose districts.

The revenue helps finance public services such as education, local infrastructure, emergency services, and certain water or drainage systems.

This explains why two homes with similar market values can have different property tax obligations.

For example, a home in Katy and another in Cypress might have similar selling prices but be located within different combinations of taxing jurisdictions.

Even two properties with the same Katy mailing address may not share identical taxing units.

How is your property tax calculated?

Your local appraisal district determines a property’s appraised value under Texas law.

Applicable exemptions and appraisal limitations can then reduce the property’s taxable value.

Each taxing unit applies its adopted tax rate to the taxable value applicable to that unit.

Here’s a simplified example.

Suppose a property has a taxable value of $300,000 for one taxing unit, and that unit charges $1 per $100 of taxable value.

You would divide $300,000 by 100, then multiply by $1.

That produces $3,000 in annual taxes for that particular taxing unit.

But that isn’t necessarily the property’s total annual tax bill.

Other taxing units may impose additional taxes using different rates and applicable exemptions.

It’s also important to understand that appraised value, taxable value, and market value are not necessarily the same thing.

Market value generally refers to what a property would sell for under applicable market-value assumptions. Appraised value is determined for property taxation under Texas law, while taxable value reflects applicable exemptions and limitations.

For homeowners thinking about selling, a property tax appraisal should not be treated as a substitute for a current comparative market analysis.

Source: Texas Comptroller — Property Tax Basics

What Property Tax Relief Is Already Law in Texas?

Before evaluating new political proposals, we need to separate them from tax relief Texas homeowners have already received.

On November 4, 2025, Texas voters approved Proposition 13, which increased the general residence homestead exemption for school-district property taxes from $100,000 to $140,000.

The increase applies beginning with the 2025 tax year.

This followed an earlier constitutional amendment approved in November 2023 that raised the exemption from $40,000 to $100,000.

So, over these two rounds of changes, the general school-district residence homestead exemption increased from $40,000 to $140,000.

What does a $140,000 homestead exemption actually mean?

It does not mean the state sends every homeowner a $140,000 payment.

And it does not mean your property’s market value decreases by $140,000.

Instead, for a qualifying residence homestead, the exemption reduces the value subject to applicable school-district property taxes.

Let’s use an example.

Example: A Texas home appraised at $400,000

Imagine you own a qualifying residence homestead with an appraised value of $400,000.

Under the former $100,000 general school-district exemption, the simplified taxable value would have been $300,000.

Under the current $140,000 exemption, the simplified taxable value becomes $260,000.

That’s an additional $40,000 excluded from school-district taxable value.

Now assume, strictly for illustration, that the applicable school-district tax rate is $1 per $100 of taxable value.

The $40,000 reduction would translate into approximately $400 in annual property tax savings.

That’s about $33.33 per month.

The example assumes no other exemptions or appraisal adjustments, a constant tax rate, and the same underlying property value.

Actual savings vary based on the home’s circumstances and school-district tax rate.

The important distinction is that the exemption primarily addresses school-district taxes. It does not automatically eliminate or reduce every other tax appearing on a homeowner’s bill.

Additional relief for qualifying older or disabled homeowners

Texas also provides an additional $60,000 mandatory school-district homestead exemption for qualifying homeowners age 65 or older or with qualifying disabilities.

Combined with the $140,000 general exemption, these homeowners may qualify for $200,000 in mandatory school-district exemptions.

Additional local exemptions and tax limitations may also apply.

These are existing benefits, not future proposals dependent on the incoming administration.

Sources: Texas Comptroller — Property Tax Exemptions | Texas Secretary of State — 2025 Constitutional Amendments

What Is Governor-Elect Gina Hinojosa Proposing?

One of Hinojosa’s campaign proposals focuses on reducing residential property taxes by redirecting certain state spending.

According to her published policy platform, she wants to eliminate corporate subsidies she considers unnecessary and use the resulting savings to reduce property taxes.

Her stated longer-term goal is to eliminate residential property taxes.

That is an ambitious policy objective, but homeowners should understand the difference between an objective and an approved tax law.

As of November 5, 2026, this proposal does not establish a specific, enacted mechanism eliminating residential property taxes.

There are several important unanswered questions.

1. Where would the replacement funding come from?

Property taxes provide significant funding for local public services, particularly education.

If property tax revenue were reduced or eliminated, lawmakers would need to determine whether the resulting revenue could be replaced, which services would be affected, and whether other state funding sources or spending changes would be necessary.

Hinojosa’s proposal identifies reducing corporate subsidies as one possible source of savings.

However, the amount of money that could actually be redirected, and how it compares with the property tax revenue being targeted, would need to be established through detailed legislation and fiscal analysis.

2. Which property taxes would be eliminated?

This question is especially important.

Would the proposed changes apply only to school-district property taxes?

Would they also involve county, city, or special-district taxes?

Would a homeowner’s primary residence qualify differently from a second home or rental property?

A broad promise to reduce residential property taxes does not answer these questions.

The actual wording of any future legislation would determine who qualifies and which obligations are affected.

3. When could homeowners see a difference?

There is currently no enacted schedule for eliminating residential property taxes under Hinojosa’s proposal.

A future plan would have to move through the appropriate legislative process, including any necessary approvals and implementation requirements.

Until those details are established, homeowners should avoid treating proposed tax savings as guaranteed future income.

Source: Gina Hinojosa — Published Affordability and Property Tax Platform

What Is Lieutenant Governor-Elect Vikki Goodwin’s Approach?

Goodwin has also emphasized the need to reform property taxes, but her published position focuses particularly on how Texas funds public services.

She argues that the state should take greater responsibility for financing essential services such as education, healthcare, and transportation.

Her position is that shifting more of these financial responsibilities to the state could reduce pressure on local governments and, in turn, local property taxpayers.

Goodwin has also pointed to existing homestead exemptions, restrictions on certain local tax increases, and school tax compression as parts of the current property tax framework.

School tax compression generally refers to state funding arrangements that reduce certain school-district tax rates.

However, additional state funding does not automatically guarantee that every local taxing unit will reduce its rate or that every homeowner will experience the same savings.

The financial outcome depends on the structure of the legislation, how state funds are allocated, and the applicable local tax requirements.

As lieutenant governor, Goodwin would have substantial influence over the Senate’s consideration of tax and school-funding legislation.

But proposed policy priorities still need to be distinguished from enacted law.

Source: Vikki Goodwin — Published Policy Positions

How Do These Proposals Compare With Greg Abbott’s Approach?

Property tax relief has been a major policy issue in Texas for several years.

During Abbott’s administration, the state enacted substantial changes to the property tax system, including the increases in homestead exemptions discussed earlier.

Abbott also promoted additional property tax proposals during 2026.

His five-point plan included tighter controls on certain local government spending, additional voter approval requirements for particular tax increases, changes involving appraisal growth, and a proposal to eliminate school property taxes for homeowners.

These additional proposals should not be confused with reforms that had already become law.

There are meaningful differences among the approaches.

Abbott’s proposed measures placed considerable emphasis on controlling local spending and tax increases, alongside further school property tax relief.

Hinojosa has emphasized ending certain corporate subsidies and using the savings to reduce residential property taxes.

Goodwin has emphasized the state’s share of funding for essential services and the financial pressure placed on local taxpayers.

Each approach raises questions about available public revenue, services, tax administration, and the long-term stability of local government financing.

Supporters of stricter spending limits argue that these measures can constrain government costs and protect taxpayers.

Supporters of greater state funding responsibilities argue that local governments and schools should not have to rely as heavily on local property tax revenue.

Critics of particular proposals may question whether the funding is sufficient, whether spending restrictions affect service delivery, or whether costs could shift elsewhere.

Understanding the proposed funding mechanism is therefore just as important as understanding the advertised tax reduction.

Source: Governor Abbott’s 2026 Property Tax Plan

What Could These Changes Mean for Houston Homeowners?

Now let’s connect the political discussion to actual real estate decisions.

1. Your monthly housing payment could be affected

Many homeowners pay property taxes through an escrow account managed by their mortgage servicer.

A reduction in actual property tax obligations could eventually reduce the amount collected for taxes through escrow.

However, it wouldn’t necessarily change the mortgage payment immediately.

Escrow payments depend on the servicer’s analysis of upcoming expenses, account balances, and possible shortages or surpluses.

And, of course, a proposed law that hasn’t passed does not itself reduce an escrow obligation.

2. Property taxes can influence what buyers can afford

When someone purchases a home, they often focus on the mortgage’s principal and interest payment.

But the ongoing cost of ownership involves more than the loan.

Property taxes, homeowners insurance, and applicable HOA dues also contribute to housing expenses.

Consider two hypothetical homes with similar asking prices.

Suppose one has an annual property tax obligation of $7,000 and the other has an annual obligation of $9,000.

The difference is $2,000 per year, or approximately $166.67 per month.

That’s a meaningful amount for someone evaluating their housing budget.

These are illustrative figures, not verified tax bills for particular Houston-area neighborhoods.

For a buyer, reviewing actual taxing jurisdictions and estimating post-purchase taxes is essential.

Historical taxes paid by the current owner may not represent what a new buyer will owe, especially when ownership changes affect exemptions or appraisal limitations.

3. Lower property taxes would not automatically increase home values

A natural question for sellers is whether lower property taxes could make their homes more valuable.

Lower recurring housing expenses could influence what some buyers can afford or are willing to pay.

But that possibility does not establish a guaranteed change in resale prices.

Home values also depend on mortgage rates, local inventory, property condition, comparable sales, competing homes, and buyer demand.

For sellers, a proposed tax reform should not replace an evidence-based pricing strategy.

Current local market data is far more useful for establishing an asking price than assuming that a future law will cause property values to increase.

4. Rental and second-home owners may be affected differently

Owner-occupied residence homestead exemptions are not available to every residential property.

Rental homes and second homes generally do not qualify for the same owner-occupied homestead exemptions.

Similarly, a future tax proposal could establish different rules for primary residences, rentals, and other residential property types.

Property owners should examine the actual eligibility requirements rather than assume that all residential properties will receive identical relief.

Why This Matters in Katy, Cypress, Richmond, Fulshear, and Sugar Land

Greater Houston is not one uniform property tax market.

Even within the same city or community, properties may fall under different taxing jurisdictions.

Some homeowners pay municipal utility district taxes. Others may have different county, city, school-district, or special-district obligations.

Consider a home in Cypress and another in Richmond.

They might have similar market values, comparable square footage, and similar features.

But their property tax obligations could differ because the homes are subject to different taxing units and rates.

Even within Katy, a property may be located in Harris County, Fort Bend County, or Waller County, depending on its location.

This is why a general statement such as “Katy has a certain property tax rate” may not accurately describe an individual home.

It also matters when discussing future tax legislation.

If lawmakers eliminate or reduce one specific category of property tax, homeowners with different tax bills may experience different results.

For example, a school-district tax change would not automatically eliminate county or MUD taxes.

For buyers and sellers in Greater Houston, the most reliable approach is to review the property’s actual tax account and identify the taxing jurisdictions.

An Important Detail: The 10% Homestead Appraisal Cap Does Not Start Immediately

Another part of Texas property tax law deserves particular attention, especially for homeowners who recently purchased a property.

Texas generally limits annual increases in the appraised value of qualifying residence homesteads to 10%, subject to statutory requirements.

However, the limitation does not necessarily begin immediately when someone purchases a home.

Under Texas Tax Code §23.23, the limitation generally takes effect on January 1 of the tax year following the year the property owner first qualifies for the residence homestead exemption.

Example: Purchasing a home in 2026

Suppose you purchase a home in 2026 and first qualify for the homestead exemption during that year.

Your homestead exemption may apply for the qualifying portion of 2026 under the applicable rules.

However, the 10% appraisal limitation generally begins with the 2027 tax year.

This timing matters because a newly purchased property may experience an appraisal adjustment before the limitation first applies.

Once the limitation applies, the appraised value generally cannot exceed the lesser of the property’s market value or the prior year’s appraised value increased by 10%, plus the market value of qualifying new improvements.

Ordinary repairs and maintenance generally are not treated as new improvements for this purpose.

The appraisal cap is not a cap on your total tax bill

Even when the 10% limitation applies, it does not guarantee that your total property tax bill can increase by no more than 10%.

Changes in applicable tax rates, exemptions, and other circumstances can affect your final tax obligation.

It also does not limit how much a property’s actual market value can increase.

For homeowners evaluating taxes, selling prices, or refinancing decisions, those distinctions are important.

Source: Texas Comptroller — Appraisal and Tax Limitations

Five Things Texas Homeowners Should Check Right Now

Regardless of which future proposals become law, there are several practical steps homeowners can take today.

1. Confirm your homestead exemption

If your home is your principal residence, verify whether you qualify for a residence homestead exemption and whether the exemption is correctly reflected in your appraisal records.

You can check through your local appraisal district.

2. Review your actual property tax statement

Identify each taxing unit that applies to your property.

Look separately at your school district, county, city if applicable, MUD, and any other districts.

This allows you to understand which parts of a proposed reform might affect your particular property.

3. Understand your appraisal notice

Review your appraisal district’s notice and determine whether the property information and valuation are accurate.

Texas law provides procedures for protesting certain appraisal determinations.

The usual protest deadline is May 15 or 30 days after the applicable appraisal notice is delivered, whichever is later, with statutory exceptions.

4. Understand when your appraisal cap applies

If you recently purchased a home, don’t assume the 10% limitation applies immediately.

Confirm the year you first qualified for the homestead exemption and when the appraisal limitation begins.

5. Follow legislation rather than relying on political headlines

Before assuming a future tax reduction will affect your finances, ask:

• Has the proposal actually become law?
• Which property types and taxing units does it cover?
• When does it become effective?
• Does it require additional local or statewide action?
• How would it affect my own property’s taxable value or tax obligation?

You can monitor future bills and their progress through Texas Legislature Online.

The Bottom Line: What Should Houston Homeowners Expect?

Texas property tax policy is entering another important period of discussion following the November 2026 election.

The incoming statewide leadership has published proposals addressing property tax relief, school funding, and the financial responsibilities of state and local governments.

But major changes—particularly any future elimination of residential property taxes—would require detailed legislation and a workable funding structure.

Meanwhile, the increase in the general school-district homestead exemption to $140,000 is already in effect.

And existing rules, including the 10% homestead appraisal limitation, continue to determine how qualifying properties are taxed.

For homeowners in Houston, Katy, Cypress, Richmond, Fulshear, Sugar Land, and surrounding communities, understanding the local details is essential.

Your actual property tax bill depends on the property, applicable exemptions, local tax rates, and the taxing jurisdictions involved.

Political proposals may influence future decisions, but homeowners should make financial and real estate plans using the laws and obligations that currently apply.

A well-informed homeowner doesn’t have to predict the future of Texas politics. They need to understand what applies to their property today and what developments deserve attention tomorrow.

I’m Mohamed Diab, REALTOR® with CENTURY 21 Western Realty, serving Greater Houston.

My goal is to help homeowners, buyers, and sellers understand the market and the policies that influence their real estate decisions.

If you’re considering selling your home, buying another property, or simply want to understand what factors may affect your housing costs, feel free to reach out.

You can also explore my other articles for educational updates on the Greater Houston real estate market.

Disclaimer: This article is for general educational purposes and does not constitute individualized legal, tax, or financial advice. Information is current as of November 5, 2026. Election certification, legislative developments, and tax rules should be rechecked when making individual decisions.