Abbott's 5-Point Property Tax Plan: What It Means for Your Tax Bill

What's in Abbott's Plan?

Governor Greg Abbott announced a five-point plan to overhaul Texas property taxes. He unveiled it at a Taxpayer Empowerment event in Houston, calling the current system "out of control."

Bold promises. Big headlines. But if you've been paying attention to property tax reform in Texas over the last decade, you know that plans and actual relief are two very different things.

Let's break down what Abbott is proposing, how we got here, what's realistic, and what you can do right now to lower your tax bill without waiting on Austin.

The 5-Point Plan, Explained

1. Cap Local Government Spending

Abbott wants to limit local spending growth to population growth plus inflation, or 3.5%, whichever is lower. He pointed to Harris County, where property taxes reportedly rose nearly 14% over two years. The idea: stop cities and counties from spending your money faster than the economy grows.

2. Require Two-Thirds Voter Approval for Tax Increases

Under this proposal, local governments couldn't raise property taxes without a two-thirds supermajority from voters. Right now, some tax hikes go through with minimal public input. This would force them to make their case directly to the people paying the bill.

3. Lower the Appraisal Cap from 10% to 3%

Currently, your homestead's appraised value can jump up to 10% per year. Abbott wants to slash that to 3%. Even bigger: this cap would apply to all properties, including rentals and commercial buildings. That's a direct play to help renters, too, since landlords have been passing tax increases straight through to monthly rent.

4. Appraisals Every Five Years Instead of Annually

Texas currently reappraises properties every year. Abbott's plan would move that to once every five years. More predictability for homeowners.

But here's the catch: when that fifth-year reappraisal hits, it could mean a much larger one-time jump, especially in fast-growing markets like Austin, Dallas-Fort Worth, and Houston.

5. Eliminate School District Property Taxes for Homeowners

The headliner. Abbott wants a constitutional amendment that would let voters eliminate school district property taxes on homesteads entirely. The state would fully fund public education instead. Since school taxes make up roughly half of most Texans' property tax bills, this could cut your bill in half if it passes.

How We Got Here: A Decade of "Historic" Reform

Texas politicians love calling their property tax plans "historic." And to be fair, some of them have been. But the pattern is always the same: big promises, real but incremental relief, and your tax bill still going up the next year.

Here's the actual track record:

2019 — SB 2: The Transparency Act
Capped local government revenue growth at 3.5% (down from 8%). Required voter approval for increases above that threshold. Meaningful step, but local governments found workarounds and property values kept climbing.

2022 — Homestead Exemption Bump
Voters approved raising the school district homestead exemption from $25,000 to $40,000. Helpful, but a drop in the bucket for homes valued at $400K+.

2023 — The $18 Billion Package (Prop 4)
Homestead exemption jumped to $100,000. School tax rates got $7.1 billion in compression. Temporary 20% appraisal cap added for non-homestead properties under $5 million. Voters approved it with 83% support. Average homestead savings: roughly $1,200.

2025 — Another Exemption Increase
Homestead exemption raised to $140,000 ($200,000 for seniors). The state committed $50 billion to property tax relief overall — the largest such investment by any state in U.S. history.

Every one of these was called a breakthrough. Every one of them helped. And every one of them still left Texas homeowners facing rising tax bills because appraisal values kept outpacing the relief.

That's exactly what Abbott's new plan targets. But "trying" and "doing" have a pretty big gap in Austin.

Not sure if your home is over-assessed? Check in under 2 minutes with TaxDrop.

What's Realistic? An Honest Assessment

Let's separate the likely from the longshot.

Most Likely to Happen

Lowering the appraisal cap has broad bipartisan support. Moving from 10% to something lower is politically popular and relatively simple to implement. Whether it lands at 3% or somewhere closer to 5% is the real question.

Tighter local spending caps are also likely. The 2019 reforms already set a precedent, and legislators love running on fiscal discipline.

Possible, But Complicated

Five-year appraisal cycles sound great on paper. Less frequent assessments means more predictability. But tax policy experts warn it could create "shock years" where values spike dramatically after years of pent-up growth. Fast-growing metros like Austin, DFW, and Houston could see huge corrections.

Voter approval requirements are popular in concept, but the two-thirds threshold is aggressive. Expect pushback from cities and counties who argue it would hamstring essential services.

The Biggest Longshot

Eliminating school property taxes entirely is the marquee promise. It's also the hardest to deliver. School districts collect roughly $40+ billion annually from property taxes. Replacing that with state funding would require a massive and permanent revenue source.

Critics on both sides of the aisle have questioned whether it's financially sustainable without either cutting education funding or introducing new taxes elsewhere.

Abbott has made this a centerpiece of his 2026 reelection campaign. That's both a strength (he'll push hard) and a weakness (it's as much about politics as policy). Note: the 89th Texas Legislature is currently in regular session through June 2025 — any of these proposals would need to be filed as bills during a legislative session to move forward.

Why Protesting Your Property Taxes Still Matters (Maybe More Than Ever)

Here's the thing about legislative reform: even when it passes, it takes months or years to show up on your tax bill. The 2023 package took two special sessions and a constitutional amendment vote just to get off the ground. Abbott's new plan hasn't even been filed as legislation yet.

Meanwhile, your 2026 Notice of Appraised Value is coming. And if your county appraised your home higher than it should be, you're overpaying right now.

Protesting is the one tool homeowners have that works today, not someday.

A 2025 Realtor.com analysis found that 51% of Texas homes could benefit from protesting their assessments. Ownwell's research across seven Texas counties showed protest success rates averaging around 88%, with reductions averaging 6.7% for successful cases.

That's real money, this year, on your actual tax bill.

And here's something most people miss: even if Abbott's reforms pass, your appraised value still matters. Caps and exemptions reduce how much of your value gets taxed. But if the underlying appraisal is wrong, you're applying those discounts to an inflated number.

Getting your assessment right through a protest is the foundation that makes every other form of relief work better. TaxDrop's licensed consultants use AI-powered analysis of 30,000+ data points to build evidence packages that win at hearings — and they handle everything from filing to representation.

What to Do Right Now

1. Check your 2026 appraisal — When your Notice of Appraised Value arrives, compare it to recent comparable sales in your neighborhood.
2. File before May 15 — That's the deadline. Miss it and you're locked in for the year.
3. Start with TaxDrop — Enroll in under 3 minutes. We handle the entire protest. If we don't save you money, you pay nothing.

Start My Protest →

The Bottom Line

Abbott's five-point plan is the most ambitious property tax proposal Texas has seen. Some pieces are achievable. Others will face serious headwinds. And even the parts that pass won't show up on your tax bill overnight.

What you can control right now: whether your home's appraised value is accurate. If it's not, you're overpaying, regardless of what happens in Austin.

The best property tax strategy has always been the same: protest every year, take advantage of every exemption, and never assume the county got your value right.

Reform is welcome. But smart homeowners don't wait for it.

Check your potential savings in under 2 minutes →