Eliminating school district property taxes for Texas homeowners would cost the state about $8.6 billion a year, and roughly $12 billion a year by 2032, Tetyana Melnyk, chief revenue estimator for the state comptroller’s office, told the Texas House Ways and Means Committee at a September 15 hearing. Community Impact reports that Texas school districts collect about $29 billion a year in maintenance and operations taxes, with the $8.6 billion figure representing the homeowner share and the rest coming from commercial and industrial property.
The current state budget for 2026-27 sets aside $51 billion for property tax relief. Gov. Greg Abbott has said he wants to end school district property taxes for homeowners and have the state cover the replacement revenue, according to a September 17 statement from campaign press secretary Eduardo Leal.
Texas Education Commissioner Mike Morath framed the question at the hearing as two separate ones: how much the state wants to spend on schools, and where that money comes from. State Rep. Barbara Gervin-Hawkins, D-San Antonio, asked whether removing the school tax piece would harm districts.
The school district share is the largest single line on most Lake Houston area tax bills, so any change at the state level would land on Humble ISD, New Caney ISD and Sheldon ISD taxpayers.
