Could the 2026 Midterm Results Change Your Property Taxes?
Property tax relief is a major issue in this year's midterm elections, with candidates promising changes that could affect how much homeowners pay each year.
In Texas, Republican Gov. Greg Abbott wants to eliminate school property taxes for homeowners, while Democratic challenger Gina Hinojosa proposes redirecting corporate subsidies toward property tax relief.
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And Texas isn't alone. Property tax reform is being debated in other states as well, according to the Associated Press.
But can the outcome of an election actually lower your property taxes? The answer is yes, although what happens after Election Day matters just as much as who wins.
Can Elections Lower Taxes?
Governors and state legislators can influence property taxes by supporting changes to exemptions, tax limits and other forms of relief.
According to the Tax Foundation, property values increased nearly 27% faster than inflation between January 2020 and July 2024, intensifying concerns about rising property tax bills.
The nonprofit says states have several options for providing relief. They can increase homestead exemptions, which reduce the taxable value of qualifying homes, or place limits on how much property taxes can increase.
Which approach lawmakers choose matters because different policies provide different levels of relief, and not every homeowner will qualify.
How Much Could You Save?
Consider a Texas homeowner whose house is valued at $400,000.
Chad Cummings, a tax attorney and university professor, explained how a proposal from Texas Lt. Gov. Dan Patrick to increase the school homestead exemption from $140,000 to $180,000 could affect that homeowner.
“On a qualifying home appraised at $400,000, with a 1% school tax rate, the school bill would fall from $2,600 to $2,200," Cummings said. “That saves $400 a year, assuming the rate stays put. City and county taxes remain untouched.”
That's why it's important to look at exactly what a property tax proposal covers. You might save money on school property taxes while still paying the same amount in city and county property taxes.
The Hidden Trade-Offs
What happens when local governments collect less money from property taxes?
Property taxes are the largest source of local government revenue, helping pay for schools and other local services.
Cutting property tax rates reduces that revenue, potentially affecting those services, said Wayne Winegarden, an economist at Pacific Research Institute.
However, Winegarden explained that lower rates could also increase property values and encourage development. Over time, that growth could expand the property tax base, allowing local governments to recover some of the lost revenue.
Homeowners could face other costs, Cummings said.
“Schools need funding,” he explained. “Replace local revenue with sales taxes, and families repay some savings at checkout. Cut school budgets, and declining school quality can damage resale values.”
When Will Bills Change?
Election results don't automatically change what homeowners pay in property taxes.
“A governor can promise relief, but legislatures authorize exemptions and local officials set rates,” Cummings said.
For example, in Texas increasing the constitutional school homestead exemption would require approval from two-thirds of both legislative chambers, followed by voter approval.
“Homeowners must then wait for the effective tax year and a bill reflecting the change,” Cummings said.
Homeowners can follow local news coverage or check their state legislature's website to see which property tax proposals move forward and when any changes could take effect.
The outcome of the midterms could put property tax relief within reach. But the amount homeowners ultimately save will depend on which proposals become law and how those changes affect their individual tax bills.
Editor’s note on political coverage: MoneyLion is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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