Institute on Taxation and Economic Policy (ITEP)

Texas

Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

State Rundown 1/7: New Year, New Opportunities for Progressive Revenue

As we kick off a new year, several states are facing revenue shortfalls. Some lawmakers are approaching the challenge with sustainable and equitable solutions.

Every Texan: Highest Tax Rates in the State Fall on Texans of Color

December 19, 2025

The income groups paying the highest tax rates in Texas are disproportionately Hispanic and Black, whereas the lowest-taxed group (the wealthiest 5%) is predominantly white. Read more.

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Texas Property Tax Plan Mimics California’s Damaging Prop 13

December 19, 2025 • By Neva Butkus, Rita Jefferson

Texas Property Tax Plan Mimics California’s Damaging Prop 13

This proposal would disrupt the state’s housing market and jeopardize local revenues while doing very little to help workers and families struggling to pay their property tax bills – just as Prop 13 did in California.

State Rundown 12/17: Tax Policy ‘Naughty or Nice’ List Has Late Entrants

With a little over a week left, some states are solidifying their spots on the tax policy “naughty or nice” list.

The Texas Tribune: Gov. Greg Abbott Wants a Tighter Lid on Home Values. Tax Policy Experts Warn That’s a Bad Idea

December 11, 2025

Gov. Greg Abbott wants to put a tighter lid on how fast property values can rise in a bid to deliver property tax relief to homeowners and businesses — but tax policy experts across the political spectrum warn the proposal wouldn’t address the root causes of higher tax bills and would backfire with severe consequences. […]

State Rundown 12/10: ‘Tis the Season to Reclaim Lost Revenue

property tax debates are taking place throughout the nation.

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State Rundown 12/3: Property Tax Cuts and Deficits

December 3, 2025 • By ITEP Staff

State Rundown 12/3: Property Tax Cuts and Deficits

States are increasingly facing difficult choices as revenues stagnate and deficits come clearer into focus.

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States Are Opening a Pandora’s Box of Data Centers

November 19, 2025 • By Page Gray

States Are Opening a Pandora’s Box of Data Centers

State governments are rushing to offer billions of dollars in subsidies to data center construction, apparently without understanding their full costs.

State and Local Policymakers Can Resist Austerity Even Amid Historic Federal Retreat

The progressivity of the federal tax code has been waning. State and local policymakers should respond by protecting their revenue bases, promoting equity, and safeguarding vulnerable communities from harmful budget cuts. 

In 2025, Voters Said Yes to Public Resources and Community Investments

Important tax measures were on the ballot this week, and the outcomes are clear: many voters support new state and local spending to support critical services in their communities.

State Rundown 11/5: Voters Say “Yes!” to Public Investments

Despite being an off-year election, voters made a call for shared public investments at the polls.

The Nation: Texas Republicans Are Doubling Down on Banning Capital Gains Taxes

October 31, 2025

If passed, the constitutional amendment would lock out a potential source of future state funding and disproportionately benefit wealthy households. Read more.

State Rundown 10/27: As Temperatures Cool Tax Policy Heats Up

States across the nation are debating how best to respond to costly new federal tax cuts.

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The Potential of Local Child Tax Credits to Reduce Child Poverty

October 8, 2025 • By Kamolika Das, Aidan Davis, Galen Hendricks, Rita Jefferson

The Potential of Local Child Tax Credits to Reduce Child Poverty

Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.

Houston Chronicle: Texas Oil Companies Forecast Billions in Tax Breaks from Trump’s ‘Big Beautiful Bill’

September 9, 2025

The Houston oil-company Occidental Petroleum reported last month it was expecting a large tax break from President Donald Trump's tax and spending cut package known as the One Big Beautiful Bill — to the tune of $700 to $800 million over the next two years.

State Rundown 9/4: Colorado Tackles Offshore Corporate Tax Avoidance, Paves Way for State Conformity Best Practices

Despite an increasingly bleak state revenue outlook, state lawmakers across the country continue to prioritize regressive tax cuts.

State Rundown 8/20: States to Face Serious Conformity, Revenue Issues as Summer Ends

While tax news has slowed as summer comes to an end, there are rumblings beneath the surface that could be an inauspicious sign of the times ahead for states and state budgets.

State Rundown 8/6: Tax Policy is Hot in the Middle of Summer

As states prepare for the revenue loss and disruption resulting from the federal tax bill, tax policy is being considered in legislatures across the country.

State Rundown 7/24: States Begin Preparing for Federal Megabill Fallout

All eyes in statehouses in recent weeks have been on federal budget negotiations, and now that the “megabill” has passed, they are focused in on their own budgets in search of ways to cope with the enormous consequences coming their way. All states will see fewer federal dollars flowing through their coffers, higher needs due […]

Sales Tax Holidays Miss the Mark When it Comes to Effective Sales Tax Reform

Sales tax holidays are often marketed as relief for everyday families, but they do little to address the deeper inequities of regressive sales taxes. In 2025, 18 states offer these holidays at a collective cost of $1.3 billion.

Anti-Tax Revolts Backfire: What We’ve Learned from 50 Years of Property Tax Limits

Across-the-board property tax cuts create less fair local tax systems in the long run. State legislators and local governments should prioritize the residents who can least afford their property taxes, not the residents and businesses who can.

How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

10 Crazy Comparisons Showing How Much Trump and Congress Just Cut Taxes for the Rich

$117 billion is a big number, so we thought it could use a little context.

State Rundown 7/8: State Tax Cuts Continue Despite Federal Megabill Passing

The last states are wrapping up legislative sessions, and some are crossing the finish line with major income tax cuts.