Adjusts the exemption amount for ad valorem taxation of income-producing tangible personal property valued under $2,500 to reflect inflation.

Texas HB4389 amends the Tax Code to adjust the exemption amount for ad valorem taxation of income-producing tangible personal property valued under $2,500 to reflect inflation. The comptroller will use an index to adjust the taxable value annually. For the 2026 tax year, the comptroller must publish the adjusted taxable value in the Texas Register and on the comptroller's website. The changes apply to tax years beginning on or after January 1, 2026.

Adjusts the exemption amount for ad valorem taxation of income-producing tangible personal property valued under $2,500 to reflect inflation.

Texas HB4389 amends the Tax Code to adjust the exemption amount for ad valorem taxation of income-producing tangible personal property valued under $2,500 to reflect inflation. The comptroller will use an index to adjust the taxable value annually. For the 2026 tax year, the comptroller must publish the adjusted taxable value in the Texas Register and on the comptroller's website. The changes apply to tax years beginning on or after January 1, 2026.