Texas · 2027 and beyond
Texas in 2027 and beyond: what is already law, and what is still open
No statewide tax proposition on the ballot. No income tax; the Legislature next meets in January 2027. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Texas Comptroller of Public Accounts sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Texas practitioner
No statewide tax proposition on the ballot. No income tax; the Legislature next meets in January 2027. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in Texas. Nothing voted on that day changes what a Texas household pays.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | There is no income tax, and the constitution bars one. |
| The school homestead exemption is $140,000, and seniors and disabled owners get a further $60,000. | |
| Starting with tax year 2027 | The 20% cap on appraisal increases for non-homestead property worth $5 million or less expires December 31, 2026 unless the 2027 Legislature extends it. |
| The Legislature, which alone can propose amendments, convenes in January 2027. | |
| 2028 and later, or conditional | Any new exemption would go to voters in November 2027. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Texas articles.
What to watch
The 2027 session: property tax relief is usually its largest bill. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your most recent property tax bill or assessment notice
- Your 2026 federal return, once filed, to set 2027 withholding and estimated payments against it
- Any notice from the county or the state about a 2027 exemption or rate change
Questions people ask
Does anything here change the return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Texas, after the election
No statewide tax proposition on the ballot. No income tax; the Legislature next meets in January 2027.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- Texas Constitution, Article VIII, Section 24-a (no tax on net incomes of individuals, adopted November 5, 2019)
- SJR 18, 89th Legislature: bill analysis, Section 24-b capital gains tax prohibition
- House Research Organization: Constitutional Amendments Proposed for the November 2025 Ballot (Propositions 2, 8, 9, 11, 13)
- 2025 Texas constitutional amendment election: results by proposition
- SB 4, 89th Legislature: $140,000 school district homestead exemption, tax year 2025
- SB 23, 89th Legislature: $60,000 exemption for homeowners 65 or older or disabled
- Texas Comptroller: Sales and Use Tax (6.25% state, up to 2% local)
- Texas Comptroller: Local Sales and Use Tax FAQ (8.25% maximum)
- Texas Comptroller: 2026 sales tax holiday, August 7 to 9
- Texas Comptroller: Paying Your Taxes (bills mailed in October, due January 31, penalty schedule)
- Texas Comptroller: Franchise Tax FAQ, taxable entities (single-member LLCs are taxable; sole proprietorships are not)
- Construction Coverage study via Fox 4: Texas effective rate 1.245%, median bill $4,108
- Texans for Fiscal Responsibility: 2025 property tax levies ($89.5 billion), from Comptroller data