Texas Election 2026: What's Ahead for Home Buyers, Sellers & Property Taxes?

Texas voters went to the polls on November 3, and the results have sparked plenty of conversation about what comes next for our state.

Democrat Gina Hinojosa won the governor's race, Democrats won a majority in the Texas House, and Republicans kept control of the Texas Senate. Because the two chambers are now controlled by different parties, any property tax change will need support from both.

For homeowners, buyers and sellers across Dallas–Fort Worth, there's good reason to pay attention. Property tax relief and the cost of homeownership were central issues in the race, and the 2027 legislative session presents an opportunity to address them.

The good news is that buyers and sellers can continue making plans with the information available today, while keeping an eye on potential opportunities for property tax relief. The election itself hasn't changed existing property tax laws, homestead exemptions or mortgage rates.

Property Tax Relief: What Could Be Ahead?

Property taxes are one of the largest ongoing costs of owning a home in Texas, and both major candidates for governor made relief a centerpiece of their campaigns, with different approaches.

Gov.-elect Hinojosa proposed funding property tax relief by cutting corporate subsidies, along with a one-time $1,500 payment to Texas households from the state's Rainy Day Fund. Those proposals would require legislative approval, and a Rainy Day Fund withdrawal may require a supermajority, depending on the applicable constitutional provisions.

While the details will take time to develop, the attention being given to property tax relief is encouraging for homeowners and future buyers.

The important distinction: proposed relief and existing tax benefits are two different things. You don't need to wait for new legislation to use the exemptions already available.

Understanding today's homestead exemption

For the 2026 tax year, qualifying Texas homeowners receive a $140,000 general residence homestead exemption from their home's taxable value for school district taxes.

Homeowners who are 65 or older or who qualify because of a disability may receive an additional $60,000 school district exemption, bringing the combined exemption to $200,000.

These exemptions apply to school district property taxes. Other taxing jurisdictions may offer separate exemptions, depending on eligibility and local rules.

Texas also generally limits annual increases in the appraised value of a qualifying residence homestead to 10%, subject to applicable rules and exceptions. For a deeper look, see my guide to Texas property taxes.

What could that mean for a $400,000 home?

Consider a hypothetical North Texas home with an appraised value of $400,000.

At an illustrative school district tax rate of $1.00 per $100 of taxable value, the exemption reduces the school district portion of the annual tax bill by approximately $1,400.

Actual savings depend on the home's value, applicable tax rates, exemptions and eligibility. City, county and other property taxes are calculated separately.

The example illustrates how existing exemptions can provide meaningful savings without waiting for future legislation.

When could anything change?

1. Now through December 2026: Election results are certified, and lawmakers can begin filing legislation.
2. January 2027: The new governor takes office, and the Legislature's regular session begins.
3. Spring 2027: Property tax relief, school funding and other proposals may be debated, amended, approved or rejected.
4. Later in 2027 and beyond: Approved legislation could begin taking effect, depending on its provisions. Some proposals may require constitutional amendments and voter approval.

The timing and impact of any changes will depend on the legislation ultimately approved. There's no guarantee that a particular proposal will pass or affect homeowners' 2027 tax bills.

What This Means for Dallas–Fort Worth Homeowners

DFW offers a wide range of communities, from established Fort Worth neighborhoods to growing areas in Mansfield, Midlothian, North Richland Hills and beyond.

Property taxes are an important part of comparing those communities. Two similarly priced homes can carry different tax bills depending on the school district, city, special taxing districts and applicable exemptions.

What About Mortgage Rates?

The Texas governor doesn't set mortgage rates.

Mortgage rates are influenced primarily by national economic conditions, the bond market, inflation expectations and Federal Reserve policy.

While broader economic and political developments can influence financial markets, a change in Texas leadership doesn't automatically translate into lower or higher mortgage rates.

The encouraging news is that buyers don't have to predict where rates are headed to explore their options.

Depending on the property, lender and buyer qualifications, different loan programs, seller concessions and mortgage rate buydowns may help make a purchase more affordable.

A knowledgeable lender can compare financing scenarios side by side, including the costs and potential savings associated with each option.

What Today's DFW Market Looks Like

For buyers and sellers, understanding the local market is just as important as following statewide developments.

Recent market activity suggests that buyers in some North Texas neighborhoods have gained negotiating opportunities compared with earlier in the year.

In North Richland Hills, for example, my analysis of NTREIS MLS data indicates that homes sold for approximately 97.6% of their original asking prices in September 2026, compared with approximately 100% in June 2026.

That represents a difference of 2.4 percentage points in the sale-to-original-list-price ratio. It's a useful illustration of how negotiating conditions can change over a relatively short period.

However, these figures describe North Richland Hills during those reporting periods, not every neighborhood in DFW. Individual properties can perform differently based on condition, pricing, location and competition.

Source: Brent Reiter's analysis of NTREIS MLS data for North Richland Hills, comparing June and September 2026.

Opportunities for buyers

Depending on the neighborhood and property, buyers may find:

• Homes with recent price adjustments
• Sellers willing to consider closing cost assistance
• New construction communities offering financing incentives
• Properties with longer market times that may offer negotiating opportunities

These conditions vary by location, price range and individual seller. Not every property will offer the same flexibility. Still, buyers who haven't explored the market recently may be pleasantly surprised by some of the options available.

Opportunities for sellers

People continue buying homes because their lives change. Families grow, careers evolve, homeowners relocate and buyers look for properties that better fit their needs. Those motivations don't disappear because of an election.

For sellers, a thoughtful strategy remains essential:

• Price the home using recent comparable sales.
• Invest in professional photography and strong online presentation.
• Understand competing listings, including new construction incentives.
• Highlight features that distinguish the property.
• Evaluate buyer financing needs when comparing offers.

A well-presented, competitively priced home can still attract serious buyers.

The key for both buyers and sellers is to focus on the conditions in their specific neighborhood rather than treating DFW as one uniform market.

Should You Wait Until 2027 to Buy or Sell?

There's no universal answer, and every situation is different.

For buyers, the right opportunity may be finding a home that fits their needs at a monthly payment they can comfortably manage.

For sellers, the decision may be tied to relocation, a lifestyle change, retirement or purchasing their next home.

Potential property tax changes could eventually provide additional financial benefits, but the timing and details remain uncertain. That doesn't mean your real estate plans need to be put on hold.

The best real estate decisions are made with good information, realistic expectations and a strategy built around your goals.

What to Watch in 2027

I'll be following three developments during the upcoming legislative session.

Property tax relief: Changes to exemptions, appraisal rules or property tax structures that could reduce homeownership costs.

Housing affordability: Policies affecting new construction, housing supply and the overall cost of purchasing and owning a home.

Implementation: When any approved changes would take effect, who would qualify and how homeowners could benefit.

As proposals develop, I'll focus on explaining what they mean for buyers, sellers and homeowners here in North Texas.

Frequently Asked Questions

Looking Ahead: Opportunity, Information and Smart Decisions

The election has opened the door to new conversations about property taxes and housing affordability. While the details will take time to develop, there are opportunities worth exploring in today's DFW market.

For buyers, that may mean finding a home with favorable negotiating conditions, financing options or seller incentives.

For sellers, it means understanding what buyers are looking for and positioning their property to compete effectively.

For existing homeowners, it means making sure they're receiving the exemptions and protections already available while staying informed about potential changes.

You don't have to predict what the market or Legislature will do next to make a thoughtful real estate decision.

Whether you're buying, selling or simply planning ahead, understanding your options is the best place to start.

If you're thinking about buying or selling in Fort Worth or anywhere across DFW, I'd be happy to help you explore your options and make sense of the numbers.