Why more than 130 Texas cities can't raise property taxes in 2026

More than 130 Texas cities have been barred from raising property taxes after the Texas Attorney General's office determined they failed to meet state financial audit and transparency requirements.

The action stems from the Texas Legislature's passage of Senate Bill 1851 in 2025, which bars cities from raising property taxes above the no-new-revenue rate unless they meet certain requirements.

The investigation was opened in December 2025, when Texas Attorney General Ken Paxton announced that his office was reviewing more than 1,000 Texas cities — including Houston, Dallas and San Antonio — to determine whether they were complying with the law.

In April 2026, Paxton's office demanded documents from more than 1,000 Texas cities to ensure compliance.

On May 14, Paxton's office announced more than 130 Texas cities failed to comply with the statutory requirements for the new fiscal year, barring them from raising property taxes above the no-new-revenue tax rate.

Paxton's office noted that the letters it sent out were to an initial list of non-compliant cities and that the investigation is ongoing.

"I will not allow cities to unlawfully raise taxes on hardworking Texans. That is why I took aggressive action against over 130 Texas cities to hold them accountable and ensure they comply with state law,” Paxton said in a statement. “Cities cannot fail to abide by state audit requirements without consequences. My office will continue to aggressively enforce Texas law to protect taxpayers across the state."

What cities are impacted by the investigation?

Here is the list of Texas cities affected by the investigation, broken down by Texas regions.

North Texas

• Balch Springs.
• Blue Mound.
• Chico.
• Combine.
• Cross Timber.
• Gordon.
• Hillcrest Village.
• Howe.
• Keene.
• Pelican Bay.
• Southmayd.
• Tom Bean.
• Valley View.
• Campbell.
• Eustace.
• Wolfe City.
• Newcastle.
• Berryville.
• Yantis.

East Texas

• Chireno.
• Corrigan.
• Elkhart.
• Huntington.
• Livingston.
• Mount Enterprise.
• New Waverly.
• Rusk.
• Shepherd.
• Woodloch.

Northeast Texas

• Clarksville.
• Red Lick.
• Redwater.

Central Texas

• Baird.
• Blooming Grove.
• Buffalo Gap.
• Calvert.
• Cameron.
• De Leon.
• Eureka.
• Groesbeck.
• Hamilton.
• Hearne.
• Jewett.
• Kerens.
• Lott.
• Marquez.
• Mexia.
• Rockdale.
• Tehuacana.
• Valley Mills.
• Miles.

Brazos Valley

• Bedias.
• Centerville.
• Fairfield.
• Franklin.
• Midway.

Gulf Coast / Houston Area

• Brookside Village.
• Clear Lake Shores.
• Danbury.
• Eagle Lake.
• Hempstead.
• Kemah.
• Manvel.
• Oyster Creek.
• Panorama Village.
• Pleak Village.
• Plum Grove.
• San Felipe.
• Seabrook.
• Surfside Beach.
• Texas City.
• Tiki Island.
• Weston Lakes.
• Wharton.

Coastal Bend

• Bishop.
• Fulton.
• Gregory.
• Ingleside on the Bay.
• Port Lavaca.
• Taft.

Rio Grande Valley / South Texas Border

• Roma.
• San Perlita.
• Weslaco.
• Crystal City.
• Natalia.

South Texas (Inland)

• Kenedy.
• Smiley.
• Three Rivers.
• Cuero.
• Yoakum.
• Somerville.
• Industry.

Texas Panhandle

• Dalhart.
• Fritch.
• Groom.
• Higgins.
• Miami.
• Stinnett.
• Sunray.
• Texline.
• Turkey.
• Howardwick.

South Plains / Llano Estacado

• Hale Center.
• Lamesa.
• New Home.
• Farwell.
• Snyder.

Rolling Plains

• Aspermont.
• Crowell.
• Megargel.
• Paducah.
• Quanah.
• Spur.

West Texas / Permian Basin & Trans-Pecos

• Alpine.
• Balmorhea.
• Big Spring.
• Crane.
• Grandfalls.
• Kermit.
• McCamey.
• Mertzon.
• Sterling City.
• Wickett.
• Horizon City.
• San Elizario.

Concho Valley & Hill Country

• Menard.
• Rocksprings.
• Briarcliff.
• Jonestown.
• Spring Branch.
• Wimberley.

Southeast Texas

• Lumberton.

Victoria / South-Central Gulf

• Victoria.

Mateo Rosiles is the Texas Connect reporter for USA TODAY and its regional papers in Texas. Got a news tip for him? Email him at [email protected].