Texas Bills to Eliminate School Property Taxes in 2027: HB 1075, HB 872 and HJR 60

Reviewed and updated November 12, 2026.

In this guide

• Which Texas bills would eliminate school property taxes?
• How would HB 1075 end school taxes on homesteads?
• How would the surplus revenue bills work?
• What would HJR 60 change about the Rainy Day Fund?
• Would my whole property tax bill go away?
• What should Texas homeowners do now?

Last updated: Nov. 12, 2026

Several bills filed for the 2027 Texas legislative session would exempt homesteads from school operating taxes or reduce the Tier One portion through state funding. HB 1075 would exempt homesteads from those taxes starting in 2028 if voters agree. HB 872, HB 1065 and HB 1040 would use surplus state revenue to buy the tax down toward zero. None has passed, and nothing changes your 2026 bill.

Which Texas bills would eliminate school property taxes?

Lawmakers began prefiling bills for the 90th Legislature on Nov. 9, 2026, according to the Texas Legislative Council. The bills below target the school maintenance and operations (M&O) tax, which pays for salaries and day-to-day costs:

• HB 1075 (Rep. Mizani): exempts homesteads from school M&O taxes, with state aid replacing the lost revenue. Paired with HJR 71, a constitutional amendment that would go to voters Nov. 2, 2027.
• HB 872 (Rep. Kerwin): dedicates 50% of general revenue above the specified spending-growth limit to school tax cuts.
• HB 1065 (Rep. Virdell): same structure, at 90% of revenue above the limit.
• HB 1040 (Rep. Shaheen): 90% of general revenue above 104% of the prior biennium’s general revenue.
• HJR 60 (Rep. Kerwin): a constitutional amendment sending Rainy Day Fund overflow to school tax cuts.

Different proposals, different scope (introduced text):

• HB 1075: homestead exemption covering Tier One and enrichment M&O, with state replacement aid. School debt taxes remain, subject to debt-contract protections. Takes effect Jan. 1, 2028, only if voters approve the HJR 71 amendment on Nov. 2, 2027.
• HB 872, HB 1065 and HB 1040: 50% or 90% of surplus general revenue funds compression. Reaching zero ends Tier One M&O, not all enrichment taxes. Effective Sept. 1, 2027; applies beginning with the Sept. 1, 2029 biennium.
• HJR 60: redirects amounts displaced by the Rainy Day Fund cap toward school M&O relief. It does not itself exempt a home. Proposes a Nov. 2, 2027 vote and Jan. 1, 2028 effect if advanced and approved.

How would HB 1075 end school taxes on homesteads?

Under the introduced text, anyone who gets the general homestead exemption would also be exempt from school M&O taxes on the rest of the home's taxable value. The appraisal district would grant it automatically, with no separate application. Beginning in the 2028-29 school year, the state would pay each district the operating revenue it loses.

The bill takes effect Jan. 1, 2028, but only if voters approve the companion amendment, HJR 71, which is set for a Nov. 2, 2027 election if two-thirds of each chamber pass it. A district could keep levying on exempted value only as needed to avoid impairing debt incurred before Jan. 1, 2028.

How would the surplus revenue bills work?

Each session, Texas already spends state money on "compression," lowering the maximum school M&O rate and replacing the lost revenue. According to the HB 872 text, the Comptroller would deposit a share of surplus general revenue into the property tax relief fund, and the education commissioner would have to lower the state compression percentage "to the lowest percentage possible" with it.

If compression reaches zero, a district "may not impose a tier one maintenance and operations tax" that year or any later year, and the state would fund districts as if they still collected it. HB 872 would take effect Sept. 1, 2027 and apply starting with the budget period that begins Sept. 1, 2029. If revenue does not exceed the trigger, that provision does not generate a deposit. The bill sets no guaranteed year for reaching a zero Tier One rate.

What would HJR 60 change about the Rainy Day Fund?

When the Rainy Day Fund (the Economic Stabilization Fund) hits its cap, the Comptroller reduces the transfer into it. Under the HJR 60 text, an equal amount of general revenue would go instead to a fund that can be spent only on reducing school M&O taxes. It needs a two-thirds vote in each chamber, and voters would decide it Nov. 2, 2027.

Would my whole property tax bill go away?

No. Even if these bills passed, school debt service (bond) taxes would remain, and so would taxes from your county, city and other local units. Rentals and commercial property aren't covered by HB 1075's homestead exemption. Your appraised value would still drive the taxes that remain.

What should Texas homeowners do now?

Pay your 2026 bill on time. It's generally due by Monday, Feb. 1, 2027, because Jan. 31 is a Sunday and the deadline rolls to the next business day (Tax Code §31.02 and §1.06). Then watch for your 2027 value notice in the spring. Your right to protest your appraised value to the Appraisal Review Board (ARB) is unchanged, and the 2027 deadline is generally Monday, May 17, 2027, because May 15 falls on a Saturday, or 30 days after your notice is delivered, whichever is later (Tax Code §41.44 and §1.06).

See our roundup of day-one property tax bills and our explainer on the $1,500 check bill. Owners can file a value protest themselves or authorize an agent; here's how a Texas property tax consultant fits into the ARB process.

Sources and verification

• HB 1075 introduced text
• HB 872 introduced text
• HJR 60 introduced text
• HB 1065 introduced text
• HB 1040 introduced text
• HJR 71 introduced text
• The Texas Dispatch: surplus revenue for school tax cuts
• Legislative calendar

Related guides

• How to protest property taxes in Texas