Texas Governor Greg Abbott on Tuesday outlined a five-point tax plan aimed at delivering additional relief to homeowners while maintaining the state’s business-friendly environment.
The proposal centers largely on property tax reductions, with Abbott calling for at least $10 billion in new property tax relief. Key components of the plan include increasing the state’s homestead exemption, further compressing school district tax rates, and placing stricter limits on how much local governments can increase property taxes in the future.
Abbott also emphasized the need to use Texas’ budget surplus to fund tax cuts rather than new government spending.
“We must continue to cut property taxes and ensure Texans keep more of their hard-earned money,” Abbott said in outlining the proposal.
In addition to property tax relief, the governor’s five-point plan includes:
- Continuing to reduce school district maintenance and operations (M&O) tax rates
- Increasing the homestead exemption for homeowners
- Limiting future property tax increases by local governments
- Maintaining Texas’ position as a no-income-tax state
- Using surplus revenue to provide ongoing tax relief
Abbott framed the plan as part of a broader effort to keep Texas economically competitive.
“Texas is the economic engine of America because we keep taxes low and opportunity high,” he said.
While the proposal is expected to receive strong support from many Republican lawmakers, questions remain about how the state will balance continued tax cuts with funding needs for public education, infrastructure, and other services.
The plan will now move to the Legislature, where lawmakers are expected to debate the details and potential impacts in the coming weeks.
