Texas is about to usher in a new year with a sweeping slate of laws that will touch nearly every corner of life in the Lone Star State, from immigration enforcement to artificial intelligence regulation.
More than 30 new laws will take effect on January 1, 2026, following action by the Texas Legislature on issues ranging from property tax relief to eviction procedures and tech regulation. Many of these changes reflect the state’s ongoing political priorities, particularly around immigration enforcement and business-friendly tax policies.
Immigration Enforcement Expands
Perhaps the most contentious change comes through Senate Bill 8, which will require all Texas sheriffs to cooperate with federal immigration authorities. The law mandates that county jails enter into formal “287(g) agreements” with U.S. Immigration and Customs Enforcement (ICE) and serve federal immigration warrants, as outlined in the legislation.
To ease the financial burden on counties, lawmakers have established a state grant program to cover implementation costs, according to information from legal experts tracking the changes. The measure represents Texas’ latest move to take a more active role in immigration enforcement, traditionally a federal responsibility.
Business Inventory Tax Relief
Small businesses will see significant tax relief thanks to House Bill 9, which dramatically increases the exemption for business inventory from local property taxes. The threshold jumps from a mere $2,500 to a substantial $125,000, as reported by the Texas Tribune.
What’s the catch? This tax break comes with a price tag for local governments. Counties, cities, and school districts will collectively lose an estimated $442 million in revenue by 2027 unless they raise tax rates to compensate. For business owners, however, the change represents welcome relief from taxes on inventory they maintain.
Faster Evictions for “Squatters”
Senate Bill 38 aims to accelerate the eviction process for unauthorized occupants, commonly referred to as squatters. The law creates an expedited pathway for landlords to remove people from properties they don’t legally occupy or rent.
Critics have voiced concerns that the measure might inadvertently weaken protections for legitimate tenants caught in disputes, while supporters argue it simply gives property owners necessary tools to protect their investments more efficiently.
First-in-Nation AI Regulation
Texas is positioning itself at the forefront of artificial intelligence regulation with House Bill 149, establishing what supporters describe as a comprehensive framework for AI development and use in the state.
The law includes restrictions on misuse of biometric data, prohibitions on harmful AI applications, and creates both a regulatory “sandbox” for testing new technologies and a Texas Artificial Intelligence Council to guide policy, as detailed by Texas Scorecard.
App Store Age Verification
Parents concerned about children’s digital activities may welcome Senate Bill 2420, which requires mobile app stores to verify users’ ages through “commercially reasonable” methods. The requirement applies to new accounts and in-app purchases, with parental approval necessary for minors.
The measure joins a growing patchwork of state-level attempts to regulate digital platforms in the absence of comprehensive federal legislation on tech issues.
Unemployment System Changes
The state’s unemployment system will also see reforms, with hour-based requirements being eliminated for claims filed after January 1. “Now lawmakers say the goal is to make both systems clearer and more consistent for Texans,” according to statements from officials involved in the changes.
The modification aims to streamline the unemployment claims process, though the full impact on applicants remains to be seen as the system adjusts to the new rules.
As Texans prepare to ring in 2026, these laws represent just a fraction of the legislative changes that will reshape the state’s legal landscape. In a state where the legislature meets only every two years, each new batch of laws tends to bring significant shifts — and this round is no exception.
