Texas lawmakers have approved a range of measures during the 2025 legislative session that are scheduled to take effect on January 1, 2026.
The changes span artificial intelligence regulation, tax policy, school finance, water infrastructure and court administration.
Collectively, the laws scheduled to take effect in 2026 reflect a mix of regulatory expansion, tax policy changes and administrative reforms. State agencies, local governments and businesses are expected to spend the coming months preparing for compliance ahead of the January deadline.
Below is an outline of the major statewide laws set to become effective at the start of the new year.
Texas Responsible Artificial Intelligence Governance Act (TRAIGA)
One of the most expansive measures taking effect in 2026 is the Texas Responsible Artificial Intelligence Governance Act, known as TRAIGA.
The law establishes a statewide framework governing the use of artificial-intelligence systems, particularly by government agencies.
It defines what qualifies as an AI system and prohibits certain uses, including systems intended to manipulate human behavior, unlawfully discriminate or produce illegal content.
TRAIGA also creates a regulatory sandbox program, allowing developers to test AI systems under state oversight, and establishes an artificial-intelligence advisory council to guide governmental use of the technology.
Enforcement authority rests with the Texas attorney general, with civil penalties available for violations.
Senate Bill 1023: Property Tax Electronic Calculation Reforms
Senate Bill 1023 changes how counties and other taxing units calculate property tax rates.
Beginning in 2026, jurisdictions will be required to use electronic, hyperlinked forms when determining tax rates.
Supporters of the measure said the goal is to improve transparency, reduce errors and make it easier for the public to review how tax rates are set. The bill does not alter tax rates themselves but modifies the process used to calculate them.
House Bill 22: Intangible Personal Property Tax Exemption
House Bill 22 removes intangible personal property from taxation in Texas.
The exemption applies to non-physical assets such as certain forms of business goodwill and other intangible holdings.
By making these assets non-taxable, the law narrows the state’s tax base and standardizes how intangible property is treated for tax purposes statewide.
Senate Bill 1058: Stock-Exchange Activity Franchise Tax Exemption
Under Senate Bill 1058, certain stock-exchange activities will be exempt from the Texas franchise tax starting January 1, 2026.
Lawmakers described the change during the legislative session as part of an effort to position Texas as a more competitive location for financial services and trading operations.
The exemption is limited to qualifying activities defined in the tax code.
Senate Bill 1502: School District Disaster Tax Rate Restrictions
Senate Bill 1502 restricts school districts from raising tax rates following a declared disaster without voter approval.
The law applies to events such as hurricanes, floods or other natural disasters.
Its provisions are intended to prevent automatic post-disaster tax increases unless local voters explicitly authorize them through an election.
House Bill 9: Business Personal Property Tax Exemption (Conditional)
House Bill 9 creates a partial exemption for the appraised value of business personal property.
However, the exemption is contingent on voter approval of a related constitutional amendment.
If voters reject the amendment, the exemption will not take effect, making this one of the few 2026 laws dependent on future electoral action.
Senate Bill 14: Water Conservation Impact Fee Credits
Senate Bill 14 allows political subdivisions, including cities and water authorities, to offer developers credits against impact fees.
 In exchange, developers must undertake qualifying water conservation or water reuse projects.
The law is intended to encourage water-saving infrastructure as Texas continues to manage long-term water supply concerns.
House Bill 16: Judiciary Reform Provisions (Partial)
House Bill 16 is a broad judiciary reform measure passed in 2025, with several sections taking effect on January 1, 2026.
These provisions address issues such as court security, record retention, warrant procedures and juvenile diversion programs. Other portions of the bill became effective earlier and are already in force.