Gina Hinojosa won the Texas governor’s race on Tuesday night, the first Democrat to win the office since Ann Richards left in 1995. The Associated Press called the race at 10:17 p.m. Central, and Greg Abbott conceded. During the campaign, no issue drew more heat than a state income tax: Abbott’s campaign ran ads and billboards saying she has long favored one, and Hinojosa repeatedly said she has never supported one and never would.
If you live in Texas, or moved here partly because there’s no state income tax, the practical question now is simple: could that change? This guide lays out what Hinojosa has said and how she has voted, what the Texas Constitution requires before any income tax could exist, who would actually have to agree, and which taxes you pay today. There’s also a property tax estimator using the current homestead exemptions and a vote-count tool showing what it takes to change the constitutional ban.
Seven Straight Answers for Texas Taxpayers
The questions people are typing into search bars this week, with the short version first.
Not by her decision alone. The constitution bans it, and changing that takes two-thirds of both chambers plus a statewide vote.
She says no and has said she would never implement one. Abbott’s campaign pointed to a 2016 interview and her 2019 vote to argue otherwise.
Yes, she voted no on the 2019 amendment. She said an older rule already required voter approval for any income tax.
Early results show Republicans holding the state Senate. Control of the House was still being counted on Wednesday.
No. There is no state income tax withholding in Texas, and nothing in the election changes that.
A one-time $1,500 payment per household from the rainy day fund, and ending sales tax breaks for data centers. Both need the Legislature.
Yes. Voters added bans on state capital gains and inheritance taxes to the constitution in November 2025.
What Hinojosa Has Said and How She Voted
The income tax fight in this race came down to three pieces of record: a 2016 interview, a 2019 vote, and what she said on the trail this fall. Here’s each one, with the context both campaigns gave it.
The interview before her first House race
Before her first run for the Texas House, Hinojosa told an Austin TV station that Texas relied too heavily on property taxes because it lacked what she called the “third leg of that stool,” which she said would include income taxes. Abbott’s campaign built billboards and ads around that clip. This fall, Hinojosa said the interview was filmed more than a decade ago, that at the time she believed property taxes were high because Texas had no income tax, and that she now attributes high property taxes to what she called “grift in the system.” She has said repeatedly that she has never supported a state income tax.
The vote on HJR 38
This is the part of the dispute that confused a lot of voters, so we went back to the bill analysis for House Joint Resolution 38. Before 2019, Section 24 of Article 8 of the Texas Constitution, known as the Bullock amendment after the Democratic lieutenant governor who championed it in 1993, allowed the Legislature to pass an income tax law by simple majority, but it could not take effect unless voters approved it statewide. HJR 38 did two things: it repealed that Section 24 and added a new Section 24-a that flatly bans a tax on individuals’ net income. After that, any income tax would first need a new constitutional amendment, which requires two-thirds of each chamber before going to voters.
Hinojosa voted no. The House record shows HJR 38 passed 100 to 42, with three members present and not voting. One hundred is the exact minimum for a constitutional amendment in the 150-member House, so the measure cleared with no votes to spare. Around 20 House Democrats voted for it. The Senate passed it 22 to 9, and voters approved it that November as Proposition 4, with roughly three in four voting yes.
The two campaigns described the same vote very differently. Abbott’s campaign called it a vote against banning an income tax. Hinojosa described it as a vote against repealing the existing ban, the Bullock amendment’s voter-approval requirement, and said she would never implement a state income tax. A CBS Texas anchor noted that her framing was not fully consistent with the legislative record, since the measure she opposed was the one that wrote a flat ban into the constitution. Both statements contain a real piece of the history: HJR 38 did repeal Section 24, and it also replaced it with a stricter, outright prohibition.
Campaign material on both sides compressed this history into slogans. If you want to check a claim yourself, the most reliable records are the enrolled text of HJR 38 on Texas Legislature Online, which shows the vote counts, and the House bill analysis, which explains exactly what the old and new constitutional sections said. Hinojosa’s 2016 interview and her October 2026 interviews with CBS Texas and others are on the public record and are worth watching in full rather than in clips.
How the Income Tax Fight Played Out in the Campaign
For readers who missed the ads, here’s how each side argued the issue in the final two months, described as each campaign put it.
| Point | Abbott campaign’s account | Hinojosa’s account |
|---|---|---|
| 2016 interview | Shows long-held support for an income tax as the “third leg” of Texas taxes | Recorded over a decade ago; she now blames high property taxes on “grift in the system” |
| 2019 HJR 38 vote | A vote against banning a state income tax | A vote against repealing the existing Bullock voter-approval protection |
| Current position | Said she is misleading voters about her record | Has never supported, and would never implement, a state income tax |
| Broader tax record | Pointed to votes it said raised property taxes | Said property taxes rose sharply under Abbott and pledged relief |
The Abbott campaign made the issue a centrepiece from September onward, with billboards, ads and statements built around the 2016 clip and the 2019 vote. In interviews with CBS Texas in late September and mid-October, Hinojosa disputed that she had voted for an income tax, describing her 2019 vote as one to keep the Bullock-era protection rather than to open the door to a tax. Abbott told the same outlet that his own aim in 2019 had been to make a state income tax unconstitutional. In the final week, as public polls showed the race tightening, Hinojosa told a Panhandle station she knew of no Texas politician who supports a state income tax, and accused Abbott of trying to distract from his own record on property taxes.
On 3 November, voters chose Hinojosa by a wide margin. Early AP figures reported on election night showed her with about 57% of the vote to Abbott’s roughly 42%. Exit interviews and post-election analysis will take time to show how much the income tax dispute moved voters, compared with issues like property taxes, school funding and the broader national environment.
What to Watch in the Next Legislative Session
If you want early warning of any change to Texas taxes, these are the signals worth following from January.
Emergency items in the governor’s first address
The governor’s State of the State address usually names emergency items. Whatever tax measures appear there are the ones most likely to move quickly.
Joint resolutions on taxes
Any attempt to change a constitutional tax ban would be filed as a House or Senate Joint Resolution. You can search for them on Texas Legislature Online by subject. Watch committee hearings and floor votes; the two-thirds threshold is visible in each vote tally.
The budget and the rainy day fund
The household payment proposal would surface in the budget debate or a standalone bill drawing on the Economic Stabilization Fund. The Comptroller’s revenue estimate, released before the session, sets how much lawmakers believe they can spend.
Property tax bills
Both candidates promised property tax relief in different forms. Changes to homestead exemptions or school tax rates usually require a constitutional amendment, meaning a November ballot, or a law changing school finance formulas.
Sales tax exemptions
Bills to change business sales tax exemptions, including for data centers, would go through the tax-writing committees: House Ways and Means and Senate Finance.
Could Texas Actually Get a State Income Tax Now?
This depends far more on the Legislature and on voters than on who’s in the governor’s mansion. Here’s the math.
Article 8, Section 24-a of the Texas Constitution says the Legislature may not impose a tax on the net incomes of individuals, including an individual’s share of partnership and unincorporated association income. Because it’s in the constitution, a regular bill can’t override it. Lawmakers would first have to pass a joint resolution proposing to repeal or change it, which needs two-thirds of the members of each chamber: 100 of 150 in the House and 21 of 31 in the Senate, assuming no vacancies. Joint resolutions don’t go to the governor for a signature or veto. If both chambers clear the bar, the question goes on a statewide ballot, and a majority of voters must approve. Only after all that could lawmakers pass an actual income tax law.
Now the arithmetic for the incoming Legislature. As of Wednesday morning, the Texas Tribune reported the state Senate holding at 19 Republicans and 12 Democrats, and the Associated Press projected Republicans would keep control of the chamber. Democrats were gaining in the House, where control was still being counted. Even with a Democratic House, 12 Democratic senators would be nine short of the 21 needed.
| Rule | In force | What it said | To create an income tax |
|---|---|---|---|
| Bullock amendment (Art. 8, Sec. 24) | 1993 to 2019 | Income tax law needs statewide voter approval; most revenue tied to property tax relief and schools | Simple majority in each chamber, then a public vote |
| Proposition 4 ban (Art. 8, Sec. 24-a) | 2019 to now | Legislature may not tax individuals’ net income | Two-thirds of each chamber for an amendment, a public vote, then a tax law |
| Capital gains ban (Prop. 2) | Approved 2025 | No state tax on realized or unrealized capital gains | Another amendment |
| Death tax ban (Prop. 8) | Approved 2025 | No new state estate, inheritance or gift taxes | Another amendment |
The Tax and Money Proposals Hinojosa Campaigned On
Here’s what she said she wants to do, described as she presented it. Each needs the Legislature, which convenes on 12 January.
A one-time $1,500 payment per household
Hinojosa proposed drawing the state’s Economic Stabilization Fund, often called the rainy day fund, down from about $27 billion to $10 billion and returning the difference to Texas households, which she put at about $1,500 each. Asked how it would work if lawmakers balked, she pointed to the size of the fund. She said details such as eligibility would be set by the Legislature. Withdrawals from the rainy day fund need legislative approval under special voting rules, so this proposal depends on lawmakers.
Ending sales tax breaks for data centers
She said she would end sales tax exemptions for data centers, which she said cost the state more than $1 billion a year, and review other business incentives she described as corporate welfare. Changing a tax exemption requires a bill passed by the Legislature and signed by the governor.
Property taxes and school funding
Hinojosa campaigned on property tax costs and more state money for public schools, and opposed the private school voucher program that began this year. She criticised property tax growth during Abbott’s tenure. Abbott, for his part, had campaigned on asking voters whether to eliminate school property taxes for homeowners. How property tax policy changes now depends on the new Legislature.
No state income tax
Her stated position in the final weeks: she has never supported a state income tax and would never implement one. She also said she knew of no Texas politician who supports one.
The 90th Texas Legislature convenes on Tuesday, 12 January 2027. Under the Texas Constitution, the new governor is installed on the first Tuesday after the Legislature organises, which points to 19 January. Regular sessions run 140 days. Bills passed during the session generally take effect later in the year unless they win a two-thirds vote for immediate effect, so even approved tax changes rarely hit household budgets before the second half of next year.
What a Texas Governor Can and Can’t Do About Taxes
Texas has what political scientists often call a constitutionally weak governor. On taxes, the office’s power is real but indirect, and it helps to know where the edges are.
Set the agenda with emergency items
The Texas Constitution normally bars the Legislature from passing bills in the first 60 days of a regular session, except for matters the governor declares emergencies. Governors use this to signal priorities. If Hinojosa names property taxes or her household payment as emergency items, lawmakers can take them up early, though they still decide whether to pass them.
Propose a budget, then veto line items
The governor submits budget recommendations, but the Legislature writes the actual two-year budget. Once it passes, the governor can veto individual spending items in the appropriations bill without rejecting the whole budget. That line-item veto is one of the office’s strongest money tools, but it cuts spending; it can’t add new taxes or new programs.
Sign or veto tax bills
Ordinary tax laws, such as changes to sales tax exemptions or the franchise tax, need the governor’s signature or must survive a veto, which takes two-thirds of each chamber to override. This is where a governor can block changes she opposes.
Call special sessions
Only the governor can call a special session, which lasts up to 30 days, and only on topics she lists. That gives the office control over what lawmakers can consider outside the regular session.
No role in constitutional amendments
Joint resolutions proposing constitutional amendments go straight from the Legislature to the ballot. The governor can’t sign, veto or block them. That’s why the income tax question rests with the Legislature and voters, whoever holds the office.
Why Texas never adopted an income tax
Texas has funded itself without a personal income tax for its entire history. The state adopted a general sales tax in 1961, and that, along with oil and gas revenue, business taxes and local property taxes, has carried the budget ever since. In 1991, Lieutenant Governor Bob Bullock, a Democrat, floated a state income tax paired with property tax cuts. The idea met strong resistance, and two years later Bullock championed the opposite: the 1993 amendment requiring statewide voter approval for any personal income tax, with most of any revenue earmarked for property tax relief and schools. That’s the provision Hinojosa referred to this fall.
In 2006, lawmakers overhauled the business franchise tax into the current margins tax, partly to pay for school property tax cuts after court rulings on school finance. Then came the 2019 outright ban and, in 2025, constitutional bans on capital gains, securities transaction and inheritance taxes. Each step narrowed the options for raising state revenue, which helps explain why property tax relief has become the central fight in Texas tax politics, and why debates over an income tax tend to be framed around property taxes, as the 2016 interview at the centre of this race was.
With the race over, statements from both campaigns are now part of the record, and some will resurface in coverage of the next session. A practical way to judge any future claim about a Texas income tax: ask whether it involves a joint resolution with two-thirds support in both chambers, and a date on a statewide ballot. If neither exists, no state income tax is close to happening.
The Taxes Texans Actually Pay Today
For most households, the tax that hurts in Texas is property tax, not income tax. Here’s where each type stands.
| Tax | Status in Texas | Who sets it | Changes after the election? |
|---|---|---|---|
| Personal income (wages, salaries) | None; banned in the constitution | Constitution | No; needs an amendment and a public vote |
| Capital gains | None; banned in 2025 | Constitution | No |
| Estate and inheritance | None; new death taxes banned in 2025 | Constitution | No |
| Property tax | Yes; the main local tax | School districts, counties, cities, special districts | Possibly, through new laws and local rates |
| Sales and use tax | Yes; state rate plus local | State and local governments | Exemptions could change by law |
| Franchise (margins) tax | Yes, on many businesses | State law | Possibly, by law |
| Federal income tax | Yes, as in every state | Congress and the IRS | Not affected by state races |
Property tax: where the real savings are
Texas pays for much of its schooling and local government through property taxes, which is why they run higher here than in many income-tax states. The biggest lever homeowners have is the homestead exemption. After voters approved Propositions 13 and 11 in November 2025, the school district homestead exemption is $140,000 for every homeowner who lives in the home, plus another $60,000 for homeowners who are 65 or older or disabled, for $200,000 in total. Those exemptions apply to school taxes; counties and cities may offer their own, smaller ones.
We ran a sample home through the estimator below to show the scale: at a combined school tax rate of about $1 per $100 of value, the $140,000 exemption alone takes roughly $1,400 off the yearly school bill, and the extra $60,000 for seniors adds about $600 more. The exemption isn’t automatic when you buy; you apply through your county appraisal district. If you bought recently, check that it’s on file. For most households, that check is worth more than anything decided in this election.
Texas Property Tax Estimator and Amendment Vote Checker
One tool estimates your yearly property tax with the current homestead exemptions. The other shows exactly how many votes a constitutional change would need.
Rates shown are examples. Your appraisal district’s notice lists the real rates for your address.
Assumes no vacancies. Two-thirds of the full membership is required in each chamber.
The estimator subtracts the $140,000 school homestead exemption, plus $60,000 more for homeowners 65 or older or disabled, from your appraised value before applying the school rate. For counties, cities and other units, it applies any optional percentage homestead exemption you enter. It doesn’t include senior tax ceilings, other special exemptions, or the 10% annual cap on taxable value increases for homesteads, so your real bill may be lower. The vote checker uses the two-thirds rule for constitutional amendments: 100 of 150 House members and 21 of 31 senators. The Senate default of 12 reflects the early count of Democratic senators.
Which Situation Sounds Like Yours?
What the election means for your taxes depends on who you are and how you earn. Find the closest match.
Pensions, Social Security, IRA withdrawals and investment income aren’t taxed by Texas, and the constitutional bans on income, capital gains and inheritance taxes don’t change with a new governor. Your bigger lever is property tax: once you’re 65, apply for the extra $60,000 school exemption and the school tax ceiling on your homestead through your appraisal district.
Your Texas wages aren’t taxed by Texas. The thing to watch is your old state: if you still have income sourced there, such as rental property or a remote job tied to an office there, that state may still tax it. File a part-year return for your move year and update your domicile records, such as driver’s license, voter registration and vehicle registration, promptly.
Section 24-a specifically covers an individual’s share of partnership and unincorporated association income, so pass-through income to individuals is inside the ban. Many entities still owe the state franchise tax, though small businesses below the Comptroller’s revenue threshold owe nothing; they may still have reports to file. Any changes to business tax breaks discussed in the campaign would need the Legislature.
Property tax policy is where the next Legislature is most likely to act, since both candidates campaigned on it. In the meantime, the things in your control are filing your homestead exemption, protesting your appraisal if it looks high (the deadline is usually 15 May or 30 days after your notice), and checking local tax rates when they’re set each year.
You don’t pay property tax directly, but landlords pass it through in rent. Rental properties don’t get the homestead exemption, so any statewide change to school property taxes could reach renters only indirectly. Hinojosa’s proposed $1,500 household payment, if lawmakers approve it, would be described in legislation; she has said eligibility details would be set there.
Based on the constitutional process, a state income tax can’t arrive quickly or quietly: it would need a supermajority in both chambers, a statewide vote and then a tax law, and each step is public. That’s months to years, with plenty of notice. Decisions based on taxes are better made on the taxes you actually pay, starting with property and sales tax.
Wages, dividends, interest and capital gains face no Texas state income tax, and the 2025 amendment separately bans a state tax on realized or unrealized capital gains. Federal taxes are unaffected by state races. If you hold real estate, property tax remains your main Texas tax exposure.
Who to Contact About Your Texas Taxes
For property values and exemptions, your county appraisal district is the place to start. For state taxes and legislation, use these.
Bing map locator: tax offices near you
Questions People Are Still Asking
Can the governor raise taxes by executive order?
No. In Texas, taxes are set by laws passed by the Legislature, and some are limited or banned by the constitution. A governor can propose changes, call special sessions to consider them, and sign or veto bills.
Could a state income tax be passed in a special session?
A special session can consider a constitutional amendment if the governor includes it in the call, but the same two-thirds votes in both chambers and the statewide public vote would still be required.
Does Texas tax my Social Security or pension?
No. With no state income tax, Texas doesn’t tax Social Security, pensions or retirement account withdrawals. Federal tax rules still apply.
Will the $1,500 household payment happen?
Only if the Legislature approves it. Hinojosa proposed it as a draw on the rainy day fund; lawmakers would need to pass it, and the details, including who qualifies, would be set in that legislation.
Did any Democrats support the income tax ban amendment?
Some did. Around 20 House Democrats and three Democratic senators voted for HJR 38. Most House Democrats, including Hinojosa, voted against it.
Is there any tax on income in Texas at all?
Not on individuals. Businesses, however, may owe the franchise tax, which is calculated on their taxable margin, and Section 24-a doesn’t bar taxes on corporations.
When will we know who controls the Texas House?
Counting was still under way on Wednesday in several close districts. The final makeup will be clear once results are certified, well before the Legislature convenes on 12 January.
Does the ban cover cities and counties too?
Section 24-a limits the Legislature from imposing a tax on individuals’ net income. Texas cities and counties don’t have the authority to levy income taxes on their own, so local governments rely mainly on property and sales taxes.
If I work remotely for a company in another state, do I owe Texas tax?
No Texas income tax applies to your wages. A few states try to tax remote workers whose employer is based there, so check the rules of your employer’s state and keep records showing you work from Texas.
Where can I read the constitutional ban myself?
The Texas Constitution is published on the Texas Legislature’s statutes website. Look for Article 8, Section 24-a.
How this page was checked. Election results reflect the Associated Press race call and reporting as of 5 November; legislative seat counts were preliminary. Constitutional language and the HJR 38 vote come from the Texas Constitution, the House bill analysis and the enrolled resolution. Statements by Gina Hinojosa and the Abbott campaign are summarised from their own published remarks and interviews with Texas news outlets. Homestead exemption figures reflect amendments approved in November 2025. Calculator figures and illustrations are our own estimates.
This page is independent, nonpartisan general information. It doesn’t endorse any candidate or party and isn’t tax or legal advice.
Key sources: Texas Constitution · Texas Legislature Online · Texas Comptroller · Associated Press