New Texas laws take effect Jan. 1, 2026. Here’s what’s changing

A set of new laws will take effect in Texas on January 1. (Jason Fochtman/Houston Chronicle via Getty Images)

Houston Chronicle/Hearst Newspap/Houston Chronicle via Getty Imag

The new year will bring several new laws to Texas.

New Texas laws taking effect Jan. 1, 2026, include changes to business property taxes, immigration enforcement by local sheriffs and eviction procedures that could affect renters and property owners statewide.

Here's a breakdown of the new laws scheduled to take effect in 2026.

House Bill 9: Business inventory tax exemption

House Bill 9 will exempt up to $125,000 of a business’s inventory from being taxed by counties, cities, and school districts, up from the current $2,500 exemption. Supporters have called the measure a win for Texas businesses, while state budget officials estimate it will reduce local tax revenues by about $442 million in fiscal year 2027 if local governments do not increase tax rates, according to the Texas Tribune.

The law will take effect Jan. 1 after voters approved a related constitutional amendment.

Senate Bill 8: Sheriff cooperation with ICE

Senate Bill 8 will require sheriffs in counties that operate a jail to formally cooperate with U.S. Immigration and Customs Enforcement under the federal 287(g) program, which allows local law enforcement to carry out certain immigration enforcement actions.

The law also allows participating counties to apply for state grants ranging from $80,000 to $140,000, depending on population, to help cover related costs, the Texas Tribune reports.

Backers of the law say it is aimed at improving public safety, while critics argue it could lead to increased racial profiling that affects immigrants and U.S. citizens alike. If a Texas sheriff is insubordinate or doesn't comply with SB 8, the attorney general has the authority to file a court order and face potential legal penalties.

The law, which applies to the vast majority of Texas counties, will take effect Jan. 1.

Senate Bill 38: Faster evictions for squatters

Senate Bill 38 will speed up the eviction process for squatters by targeting people who are illegally occupying properties.

The law streamlines eviction procedures by requiring justice courts to schedule hearings within 10 to 21 days of a case being filed and by limiting the issues those courts can consider.

Under the law, justice courts are barred from ruling on property title disputes, counterclaims or third-party issues, restricting cases strictly to whether a property is being unlawfully occupied.

The measure also allows judges to issue summary judgments in clear squatting cases and tightens notice requirements, directing landlords to deliver eviction notices in ways likely to ensure occupants actually receive them, such as direct delivery or posting notices in visible places.

Supporters of the law say it gives property owners a quicker way to regain control of their property, while housing advocates warn that the changes reduce protections for tenants and could increase the risk of people being wrongly evicted, according to the Texas Tribune.

Critics have also raised concerns that the law limits flexibility during emergencies by preventing the governor and the Texas Supreme Court from pausing or modifying eviction proceedings, as they did during the COVID-19 pandemic.

One section of the law took effect in September, while the remaining provisions are scheduled to take effect Jan. 1.