Texas Governor Proposes Sweeping Property Tax Overhaul

Abbott's plan aims to cap local spending and eliminate school district property taxes

Apr. 1, 2026 at 2:20am

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Texas Governor Greg Abbott has unveiled a five-part plan to overhaul the state's property tax system. The proposal would cap local government spending, require voter approval for tax increases, and phase out school district property taxes altogether, with the state taking on full responsibility for funding schools.

Why it matters

Rising property values and local government spending have led to higher tax bills for homeowners and businesses in Texas. Abbott's plan is an attempt to provide permanent property tax relief, though some experts are skeptical about the feasibility of fully eliminating school district property taxes.

The details

Under Abbott's proposal, local governments would be required to live within the same spending limits as the state. The plan would also eliminate school district property taxes, with the state taking on the responsibility of fully funding schools. However, the changes would take years to implement, as lawmakers won't be able to make substantial changes until the legislature meets again in 2027.

  • On April 1, 2026, Governor Greg Abbott announced the new property tax proposal.
  • The plan, if passed, would take years to fully eliminate homeowners' school taxes.

The players

Greg Abbott

The current Governor of Texas, who has proposed a sweeping plan to overhaul the state's property tax system.

Doug Zettler

The COO of Property Tax Consultants, who expressed skepticism about the feasibility of fully eliminating school district property taxes.

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What they’re saying

“What we are seeking to achieve here is to require every local property taxing jurisdiction to live within the same spending limits the state of Texas lives within.”

— Greg Abbott, Governor of Texas

“I think that's a huge step to take, and I don't think it will happen.”

— Doug Zettler, COO of Property Tax Consultants

What’s next

The proposal, if passed, would take years to fully eliminate homeowners' school taxes, as lawmakers won't be able to make any substantial changes until the Legislature next meets in 2027.

The takeaway

Governor Abbott's ambitious plan to overhaul Texas' property tax system faces significant hurdles, with experts questioning the feasibility of fully eliminating school district property taxes. The proposal highlights the ongoing challenge of balancing local government spending, rising property values, and providing tax relief for homeowners and businesses.