Texas Taxes
Our Tax System Is Upside-Down.
Texas depends heavily on sales and property taxes—about 80% of all state and local revenue. Despite the “low-tax” reputation, Texans actually face some of the highest property taxes in the country, while overall revenue remains only middle-of-the-road. The result? A system that asks the most from those who can afford it least—and delivers less to them in return.
Right now, low- and middle-income Texans, especially communities of color, are paying more while building less wealth. At the same time, corporations and the wealthy benefit from tax breaks and untaxed income.
A fair tax system should support strong schools, good jobs, affordable health care, and thriving communities—and it should do so in a way that reflects people’s ability to pay.
Tax Fairness
Without a fair and adequate tax system, the state’s ability to invest in schools, public safety, roads, and other public services will continually become more difficult. Click to learn more about Tax Fairness.
Tax Breaks & Incentives
In the search for new sources of state revenue to fund the much-needed remodeling of our school finance system, many observers have looked to tax exemptions and other tax breaks that reduce our state’s ability to maintain public services. But finding new revenue simply by repealing exemptions is not as simple as it looks. Click to learn more about Tax Breaks & Incentives.
Property Taxes
Property taxes account for half of all state and local taxes paid in Texas. Click to learn more about Property Taxes.
Our Priorities
Every Texan provides targeted solutions to:
Reject tax cuts that undermine our vital state and local public services, like education, good jobs, affordable healthcare, infrastructure, public safety, anti-poverty programs, and more.
Improve the fairness of the tax system and explore new sources of revenue to reduce pressure on low-income Texans and ensure everyone pays their fair share.
Get rid of costly tax exemptions that mostly benefit the wealthy.
Reduce costly and unnecessary economic development tax incentives and strengthen oversight and transparency.
Reject state or local spending or revenue caps that weaken the ability of elected officials to meet the needs of their constituents and communities.
Every Texan deserves a tax system that is fair, balanced, and built for the future—one that raises enough revenue to invest in education, infrastructure, and opportunity for all.
About Texas Taxes
In Texas, all property taxes are local; we do not have a state property tax. About half of property tax revenue is collected by school districts, while the rest is collected by cities, counties, and other local taxing authorities such as hospital districts, community college districts, and municipal utility districts.
Related Resources
Texas Taxes Are Upside-Down. Big Tax Cuts Don’t Help.
March 17, 2025
HB 1367 Would Equitably Cut County Property Taxes
May 14, 2025
Testimony to Senate Local Government Committee Against SB 9
August 1, 2025
Testimony to House Ways and Means Committee Against SB 10 (89(2))
September 8, 2025
Your Support Makes a Difference
We believe Texas can be the best state in the United States, and our public policy work is an indispensable part of getting there. Your support improves equity in health care, food security, education, and financial stability.