Texas Gov. Greg Abbott formally launched his 2026 re-election bid in Houston on Sunday, placing property tax reform at the center of his platform as he seeks a record fourth term in office. The announcement came one day after California Gov. Gavin Newsom appeared in Texas to rally with Democrats following California’s successful effort to change its own congressional map process.
Addressing supporters, Abbott said property tax reform will be the cornerstone of his policy push moving forward. “We are going to turn the tables on local taxing authorities, put the power with the people, and end out-of-control property taxes in Texas,” he told the crowd.
The move echoes Abbott’s previous strategy of championing a major statewide policy priority during election cycles. In 2022, he concentrated on school choice and later leveraged political momentum to advance education savings accounts in the Texas Legislature, after the effort initially fell short.
Ongoing Public Concern About Rising Tax Bills
Property taxes remain one of the most consistent and widely discussed issues among Texas voters. Rising home values across the state, inflation-driven cost increases since the COVID-19 pandemic, and growing local government spending have combined to keep tax bills elevated, even as state lawmakers have repeatedly used budget surpluses to buy down school district tax rates and expand homestead exemptions.
Despite those efforts, many homeowners continue to report higher tax bills year over year, a trend that has fueled repeated calls for structural reform. Republicans and Democrats alike acknowledge that property taxes are often the top issue raised by residents during election seasons.
Six-Pillar Reform Plan Targets Local Governments
Because property taxes are primarily levied at the local level, much of Abbott’s new reform plan focuses on limiting local governments’ ability to raise revenue. Among the changes he is calling for:
Requiring a two-thirds supermajority of voters to approve any local tax increase.
Capping local government spending growth at the lower of population-plus-inflation or 3.5%.
Allowing citizens, by petition and election, to roll back local property tax rates.
Asking voters statewide to approve a constitutional amendment to eliminate school district property taxes for homeowners.
The idea of phasing out school district taxes has been discussed for years in conservative policy circles. However, replacing that revenue — which funds the bulk of public school operations — would require the state to consistently supply billions of dollars every budget cycle. Past attempts to move in that direction have reduced but not removed school district tax burdens due to rising property values and recurring funding demands.
Renewed Debate on Appraisal Reform
Abbott is also proposing changes to the state’s property appraisal system. He is calling for a 3% cap on annual appraisal increases for all property, including both residential and commercial. Currently, Texas caps annual appraisal increases at 10% for homesteads but has no cap for other property types.
The concept has been politically contentious. During a previous debate in 2023, legislative leaders disagreed sharply on how far appraisal caps should go, and business groups were divided. Smaller businesses generally favored tighter caps, while larger firms argued that they could distort markets and create uneven advantages among property owners.
Abbott also wants to lengthen the appraisal cycle so that properties are reappraised every five years instead of every one to three. This would slow yearly tax bill increases but could lead to sharp adjustments when reappraisals eventually occur.
Legislative Hurdles Ahead
Many of the proposals would require constitutional amendments or major legislative changes, meaning they would need broad political support. Some items — particularly requiring supermajority voter approval for tax increases — have seen little progress in previous sessions.
Still, Abbott begins the campaign with substantial political resources, including a reported $90 million campaign war chest. That funding could support both legislative lobbying and electoral efforts to back candidates aligned with his tax reform goals.
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