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Texas Legislature 2027: Property Tax Plans and DFW Rentals

Published by the FundPlug desk, a disposition desk of Myers The Home Buyers of Dallas, LLC, TREC 9005311.

Short answer

The 90th Texas Legislature convenes at noon on Jan. 12, 2027, and bill filing opened Nov. 9, 2026. Before the Nov. 3, 2026 election, Lt. Gov. Dan Patrick called for a $180,000 homestead exemption for homeowners under 55 and Gov. Greg Abbott for a 3% yearly appraisal growth cap on all property; both lost reelection. A homestead exemption only covers an owner's principal residence, so raising it does not lower the tax bill on a rental house.

Property tax sits in every rental buyer's numbers, so the 2027 session matters to anyone who prices DFW rentals or assigns contracts to landlords. This post covers proposals made before bill filing opened on Nov. 9, 2026, not bills filed since.

When does the Texas Legislature meet in 2027?

The Texas Legislative Council lists Monday, Nov. 9, 2026 as the first day legislators and legislators-elect may file bills for the 90th Legislature. It lists Tuesday, Jan. 12, 2027 as the first day of the 90th Regular Session.

What property tax relief did Patrick and Abbott propose?

In a March 27, 2026 statement releasing the Senate's interim charges, Lt. Gov. Dan Patrick listed property tax relief via "Operation Double Nickel" among his priorities: a homestead exemption of $180,000 for homeowners under 55 and $240,000 for senior homeowners, and a homestead tax freeze at age 55 instead of 65.

Gov. Greg Abbott promoted his property tax plan in Bullard, KWTX reported on June 30, 2026. According to KWTX, the plan would, among other steps:

  • Cut the yearly homestead appraisal growth cap from 10% to 3%, and extend that 3% cap to all properties.
  • Ask voters, by constitutional amendment, whether to eliminate school district property taxes for homeowners.

What did the Nov. 3, 2026 election change?

Democrats Gina Hinojosa and Vikki Goodwin beat Republicans Abbott and Patrick, according to Secretary of State returns updated Nov. 4, 2026. Both winners take office in January 2027.

Hinojosa's campaign platform promises to end corporate subsidies and use the savings to cut property taxes, with a goal of eliminating residential property taxes; it does not say whether rental houses count. She also proposed a one-time $1,500 refund check to each Texas household from the rainy day fund, about $17 billion in all. KPRC reported Nov. 4, 2026 that both need legislative approval.

Does a bigger homestead exemption lower taxes on a rental house?

No. The Texas Comptroller says a residence homestead exemption requires an ownership interest in the property and use of it as the owner's principal residence. Under Tax Code Section 11.13, school districts must give a $140,000 exemption on a residence homestead, plus $60,000 more for owners 65 or older or disabled.

A house you rent to a tenant is not your principal residence, so it gets none of that. Patrick's exemption and freeze plans and Abbott's school tax plan are aimed at homeowners; Abbott's 3% cap would also have covered rental houses.

Rental houses have a separate limit through Dec. 31, 2026. The Comptroller says Tax Code Section 23.231 holds the yearly increase in appraised value of most non-homestead real property valued at $5,320,000 or less in 2026 to 20%, plus new improvements, until it expires. This is general information, not tax advice.

Did the Texas House study wholesaling or corporate landlords?

Speaker Dustin Burrows' March 2026 House interim charges sent Ways and Means to study school tax rate compression, a larger homestead exemption, appraisals, and local spending and debt. The charges list no item that names wholesaling, contract assignments or corporate ownership of rental homes.

A cap on corporate rental ownership has been filed before. SB 443, filed Nov. 21, 2024 by state Sen. Juan Hinojosa for the 89th Legislature, would have barred a corporate owner from holding an interest in more than 10 single-family rental homes in Texas, with a $100,000 civil penalty for each home over the limit. It was referred to Senate State Affairs on Feb. 3, 2025, and LegiScan lists it as died in committee. Gina Hinojosa, now governor-elect, authored the House version, HB 2910.

What this means for your next DFW rental deal

A proposal is not a number for a buyer's spreadsheet.

  • Price the deal on the property's actual tax bill: the appraisal district's value and the adopted rates, not a proposed change.
  • Track bills on Texas Legislature Online (capitol.texas.gov). Read bill text, not headlines, and check whether relief stops at the residence homestead or reaches all property.
  • Search filed bills for homestead, appraisal, 23.231, single-family and assignment.

Sources

General information, not legal advice. Checked against these on November 5, 2026.

  1. Texas Legislative Council, Dates of Interest: 89th Legislature (accessed Nov. 2026)
  2. Office of the Lieutenant Governor, Lt. Gov. Dan Patrick Releases 2026 Interim Charges to the Texas Senate (March 27, 2026)
  3. KWTX, Texas Gov. Greg Abbott touts 'taxpayer empowerment' property tax plan in Bullard (June 30, 2026)
  4. Texas Comptroller of Public Accounts, Property Tax Exemptions (modified Dec. 11, 2025)
  5. Texas Comptroller of Public Accounts, Valuing Property (modified May 18, 2026)
  6. Texas House of Representatives, Interim Committee Charges, Speaker Dustin Burrows (March 2026)
  7. Texas Legislature Online, S.B. 443 introduced text, 89th Legislature (accessed Nov. 2026)
  8. LegiScan, TX SB443, 89th Legislature (accessed Nov. 2026)
  9. Texas Secretary of State, Election Results, Nov. 3, 2026 General Election (updated Nov. 4, 2026)
  10. CBS Texas, Democrat Vikki Goodwin upsets incumbent Dan Patrick in Texas lieutenant governor race (Nov. 4, 2026)
  11. CBS Texas, Hinojosa defeats Abbott, makes history as Texas' first Democratic governor in decades (Nov. 3, 2026)
  12. KPRC 2, Gina Hinojosa's plans for Texas: $1,500 checks, data centers and medicaid (Nov. 4, 2026)
  13. Gina Hinojosa for Texas, An Affordable Texas That Works for Everyone (accessed Nov. 2026)
  14. Texas Legislature Online, H.B. 2910 introduced text, 89th Legislature (accessed Nov. 2026)
  15. Legiplex, Gina Hinojosa, 89th Legislature authored legislation (accessed Nov. 2026)

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