Key Tax Changes for Texans in 2026

New legislation extends 2017 tax cuts and provides additional relief for families and workers

Published on Feb. 4, 2026

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The 2026 income tax filing period is here, and recent legislative changes in 2025 could allow Texans to keep more of their tax returns. The 'One Big Beautiful Bill Act' extended key provisions of the 2017 Tax Cuts and Jobs Act, providing significant long-term tax relief for working families in the state. This includes permanent tax relief, preventing automatic tax increases, and targeted cuts for hospitality and hourly workers like firefighters and nurses. Families will also benefit from expanded child tax credits and adoption tax credits.

Why it matters

These tax changes are crucial for Texans, especially those in the Permian Basin region, as they aim to provide much-needed financial relief and support for working families, retirees, and key service workers. The legislation helps prevent a large impending tax hike and delivers on the promise of allowing Texans to keep more of their hard-earned money.

The details

The 'One Big Beautiful Bill Act' was signed into law on July 4, 2025, extending key provisions of the 2017 Tax Cuts and Jobs Act. This includes making permanent tax relief that prevents automatic tax increases on families, as well as targeted tax cuts offering savings for hospitality workers and hourly workers like firefighters and nurses. Families will also benefit from expanded child tax credits and adoption tax credits.

  • The 'One Big Beautiful Bill Act' was signed into law on July 4, 2025.
  • The deadline to file 2026 income taxes is April 15, 2026.

The players

August Pfluger

Congressman representing Texas's 11th district, who elaborated on the tax changes and their benefits for Texans.

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What they’re saying

“We prevented the largest tax hike in U.S. history. Without the legislation, taxpayers in Texas 11 would have faced a 26% tax increase. This year, 88% of all seniors who receive Social Security will pay no tax on their Social Security benefits. Families will also benefit from the expanding child tax credit and adoption tax credit, providing even more support for raising and your family. As your elected representative, I firmly believe that you should keep more of your hard-earned money and that this legislation delivers on that exact promise.”

— August Pfluger, Congressman (yourbasin.com)

What’s next

Texans should be sure to file their 2026 income taxes by the April 15, 2026 deadline to take advantage of the new tax changes and credits.

The takeaway

The 'One Big Beautiful Bill Act' of 2025 provides significant long-term tax relief for Texans, including permanent tax cuts, targeted savings for key workers, and expanded family tax credits. This legislation helps ensure Texans can keep more of their hard-earned money and provides much-needed financial support for working families, retirees, and essential service providers in the state.