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Texas Gov. Greg Abbott on Wednesday rolled out a five-point plan aimed at sharply reducing property taxes for homeowners — a signature policy he is pushing as he seeks a fourth term. The proposals would curb local spending, change how properties are appraised and, eventually, seek to remove school district property taxes for homeowners — moves that would shift revenue responsibilities and reshape local budgets if approved.
Announced at a Taxpayer Empowerment event in Houston, the package is framed as relief for homeowners and a key campaign issue heading into the fall election. Abbott characterized the measures as necessary to keep Texas attractive to business and residents while lowering the tax burden on homeowners.
What the five-point plan would do
- Limit local spending growth: Local governments would be restricted to raising budgets only by population growth plus inflation, or a hard cap of 3.5%, whichever is lower.
- Require a supermajority for tax hikes: Any local property tax increase would need approval from two-thirds of voters before it could take effect.
- Rollback petitions: If 15% of voters in a jurisdiction sign a petition, a measure to reduce existing property taxes would be placed on the ballot for public vote.
- Change appraisal practices: Properties would be appraised once every five years instead of annually, and annual appraisal increases for homesteads would be capped at 3% (down from today’s 10% cap). The proposal would extend appraisal caps to rental and commercial properties as well.
- Eliminate school district property taxes for homeowners: Voters would be asked to consider a constitutional amendment to remove school property taxes for homeowners, with the state assuming full responsibility for public school funding — a change Abbott says would cut typical property tax bills roughly in half.
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Under current Texas law, homestead appraisals may rise up to 10% per year; Abbott’s plan reduces that ceiling to 3% and applies limits more broadly. Moving appraisal cycles to every five years is intended to give homeowners more predictability in their tax bills, supporters say.
Those changes would have immediate winners and losers. Homeowners could see substantially lower or more stable property tax bills, but local governments and school districts could face funding shortfalls unless state dollars replace local revenue. The proposal to have the state fully finance public education would be a major policy shift requiring constitutional change and new state budget commitments.
Political and fiscal implications
The package is designed to be a central theme of Abbott’s re-election campaign, with plans to take the issue to voters across the state. Requiring a supermajority for local tax increases and enabling taxpayer-driven rollback ballots are both measures likely to resonate with voters who prioritize tax relief.
At the same time, fiscal analysts and local officials will likely scrutinize how the state would cover education costs and whether the proposed caps would constrain essential local services, including public safety and infrastructure maintenance.
Why this matters now: Property taxes are a major expense for many homeowners and a persistent political flashpoint in Texas. With the governor positioning this agenda for the fall election, how lawmakers and voters respond could reshape school funding and the fiscal relationship between Austin and local governments.
Abbott framed the plan as both economic policy and campaign messaging, saying it will help maintain Texas’ competitive appeal while delivering tax relief. The measures would require legislative action and, in some cases, voter approval before taking effect — setting up months of debate at the Capitol and on the campaign trail.
