🏘️ New 2026 Texas Laws: What Houston Families & Homeowners Need to Know
As we step into 2026, several significant changes to Texas law have officially taken effect today.
Living in Houston, we’ve seen everything from rapid growth to major weather events recently. Many of the new laws passed by the 89th Legislature directly address these local issues—from property tax protection after disasters to new safety tools for parents.
Here is a quick breakdown of what you need to know:
💰 1. Relief for Homeowners & Small Businesses
The "Disaster" Tax Shield (HB 30): After the record-breaking storms we've faced, this is a major win. Local governments can no longer use "disaster loopholes" to hike property taxes above the 3.5% voter-approved limit without an election. This ensures your tax bill stays predictable, even after a rough hurricane season.
Increased Homestead Exemption (Prop 13): Following the November vote, the state homestead exemption for school taxes has officially increased from $100,000 to $140,000. This means more of your home's value is protected from taxes, putting more money back in your pocket.
Inventory Tax Break (HB 9): Do you run a small business or side-hustle? The tax exemption for business inventory has jumped from $2,500 to $125,000. For many local entrepreneurs, this effectively eliminates the "business personal property" tax.
🏫 2. Major Changes for Houston Students
A New Approach to Testing (HB 8): The high-stress, end-of-year STAAR test is being phased out. It’s being replaced by the "Student Success Tool," which uses smaller "check-ins" throughout the year. The goal is to reduce test anxiety and give parents a clearer, real-time picture of their child's progress.
Mandatory Life Skills: High schoolers are now required to earn credit in Personal Financial Literacy to graduate. They’ll be learning about budgeting, credit, and taxes—essential skills for the next generation of Houstonians.
🛡️ 3. Neighborhood Safety & Property Rights
Faster "Squatter" Removal (SB 38): This law creates a streamlined process for property owners to remove unauthorized occupants. Instead of months in civil court, clear cases of "squatting" can now be resolved in a matter of days, protecting our local property values.
Enhanced HOA Security (HB 26): Specific to Harris County, HOAs can now contract directly with the Sheriff or Constables for extra patrols without needing lengthy approvals from the County Commissioners. This allows neighborhoods to prioritize safety more efficiently.
Why this matters: Whether you are settled in your forever home or just relocated to the Bayou City, these laws are designed to make Texas more affordable and schools more supportive.