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Residents of Texas Alert: New $140,000 Tax Break Approved, Plus Billions in Unclaimed Cash

Austyn Kunde
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TEXAS - If you live in Texas, you know that while we don't have a state income tax, property taxes can be brutal. But there is huge news for 2026 that could slash your bill significantly. Voters recently approved a constitutional amendment raising the standard Homestead Exemption to a historic $140,000. This means a massive chunk of your home's value is now off-limits to school district taxes.


Residents of Texas Alert: New $140,000 Tax Break Approved, Plus Billions in Unclaimed Cash
Residents of Texas Alert: New $140,000 Tax Break Approved, Plus Billions in Unclaimed Cash

But that isn't the only money available to Texans this year. The Comptroller’s office is sitting on a massive "lost and found" pot of cash, and a state grant program is currently paying residents up to $5,000 to buy cleaner vehicles.

Here is your guide to maximizing your return in the Lone Star State.



1. The $140,000 Homestead Exemption

This is the single biggest financial update for Texas homeowners in decades.

The Change: For the 2026 tax year, the standard Homestead Exemption for school district property taxes has officially risen to $140,000.



2. The $2 Billion "Claim It" Pot

Texas currently holds over $2 billion in unclaimed property. Because there is no statute of limitations in Texas, the state holds this money forever until you claim it.

This includes:

How to Check:

3. The $2,500+ Vehicle Rebate (LDPLIP)

While federal EV credits are well-known, Texas has its own specific grant program called the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP).



The Texas Commission on Environmental Quality (TCEQ) offers rebates to people who buy or lease new vehicles that run on alternative fuels.

4. Sales Tax Holiday (Emergency Supplies)

While the "Back to School" tax holiday is famous, don't forget the Emergency Preparation Supplies Sales Tax Holiday which typically happens in late April.

Action Plan: 3 Steps to Take Today

  1. Search ClaimItTexas.org: Do it right now. It is the only way to check if you have mineral royalties or lost wages waiting for you.
  2. Verify Your Homestead Status: Go to your County Appraisal District's website (e.g., hcad.org for Harris, dcad.org for Dallas). Search your address and ensure the "Homestead Cap" and "Exemptions" lines are active to lock in the new $140k benefit.
  3. Check the LDPLIP List: If you are buying a car this month, check the TCEQ website to see if your model qualifies for the extra $2,500 state check.