Top New Laws in Texas for 2026

Happy (early) New Year! Every year, January 1 brings with it a slate of new laws, and 2026 is no different. My criteria as to what constitutes a “top new law” are: what I find interesting, what will impact Heckman Law, PC clients the most, and how broad the change will be. These are focused largely on construction and real estate, but also with an eye toward business generally. Unless otherwise stated, these laws went into effect on January 1, 2026.

And I have done the same for California here.

Texas entrepreneurs, developers, property owners, and real estate professionals are entering 2026 with a wave of legislative changes designed to streamline regulation, support business growth, and clarify property rights.

5. Mechanic’s Lien and Trust Fund Clarifications (SB 841/SB 929)

The 2025 legislature amendments clarify deadlines for mechanic’s lien filings and expand protections under the Construction Trust Fund Act, giving contractors and suppliers stronger legal rights and clearer procedures. These changes went into effect on March 1, 2025 (but since we didn’t cover them last year, I figured it was worth bringing in here).

4. Real Estate Licensing and Regulation Reform (SB 1968)

SB 1968 revises regulations governing real estate professionals under the Texas Real Estate Commission. This update modernizes licensing requirements and professional standards, impacting agents, brokers, and firms statewide starting January 1, 2026. If you haven’t already, familiarize yourself with the changes (including the new REALM Portal).

3. The Responsible Artificial Intelligence Governance Act (HB 149)

Effective January 1, 2026, HB 149 establishes a regulatory framework for AI use in Texas. The law regulates AI use by government and, to a more limited extent, the private sector. The goal is transparency and consumer protections, empowering the Texas Attorney General to enforce compliance with civil penalties (hopefully balancing innovation with prevention of misuse). HB 149 also creates the Texas Artificial Intelligence Council to advise on AI policy.

2. Eviction and Squatter Removal Reform (SB 38)

SB 38 amends the Texas Property Code to simplify eviction procedures and strengthen property owners’ ability to remove unauthorized occupants more quickly. Supporters argue that it sets up clearer venue requirements, limits counterclaims and unrelated disputes in justice courts, and directs courts to resolve eviction suits more quickly. Critics and tenant advocates have raised concerns that the changes could reduce procedural safeguards for occupants, although significant revisions were made before enactment to focus the expedited process on truly unauthorized occupants rather than traditional tenants.

1. Business Tangible Personal Property Tax Exemption (HB 9 and Proposition 9)

HB 9 and its counterpart Proposition 9 exempt up to $125,000.00 (up from $2,500.00) of business inventory from local property taxes, reducing operating costs for many companies including developers and real estate-related businesses. This tax provision takes effect January 1, 2026.

Conclusion

Texas is reinforcing a legal environment that favors development, efficiency, and innovation. The legislature has moved to protect property rights, streamline dispute resolution, modernize the treatment of AI, and strengthen lien protections that underpin construction activity. Texas remains broadly pro-business and pro-growth, but success in 2026 will increasingly depend on understanding and managing the evolving legal risks that accompany that momentum.