New 2026 Texas laws take effect, reshaping immigration, taxes, evictions and AI oversight
A slate of new Texas laws are taking effect in 2026, bringing changes that touch immigration enforcement, small businesses, housing disputes and the rapidly expanding use of artificial intelligence.
The measures, passed during the last legislative session, reflect lawmakers' priorities on public safety, economic relief and emerging technology for the new year.
Below is a breakdown of some of the key laws now in force.
ICE cooperation requirement for Texas county jails (SB 8)
Senate Bill 8 requires Texas sheriffs who operate county jails to cooperate with federal immigration authorities through the 287(g) program, a partnership with U.S. Immigration and Customs Enforcement (ICE).
Under the law, sheriff's offices must enter agreements that allow trained deputies to verify immigration status and carry out certain federal immigration enforcement duties inside local jails. Supporters have said the measure strengthens cooperation between state and federal authorities, while critics argued it places additional responsibilities and costs on local law enforcement.
The requirement applies to nearly all Texas counties that operate jails.
Business inventory tax exemption expanded (HB 9)
House Bill 9 expands a property tax exemption for businesses by exempting up to $125,000 of business personal property, including inventory, from taxation.
State leaders said the change is designed to provide tax relief for small businesses by reducing the amount of inventory subject to local property taxes. Business groups have praised the measure as a way to ease operating costs, particularly for retailers and manufacturers.
The exemption applies automatically, meaning qualifying businesses do not need to apply separately to receive the tax break.
Faster eviction process for squatters (SB 38)
Senate Bill 38 speeds up the eviction process in cases involving squatters or people occupying a property without legal permission.
The law shortens timelines for courts to act once a landlord files an eviction case related to unlawful occupancy. While landlords are still required to provide notice before filing, the measure limits delays that can keep property owners from regaining control of their homes or rental units.
Lawmakers backing the bill said it addresses growing concerns from property owners, while tenant advocates warned it could reduce legal protections in disputed housing situations.
New guardrails for artificial intelligence in Texas (HB 149)
House Bill 149 creates formal regulations governing the use of artificial intelligence by state agencies and contractors.
The law establishes standards aimed at increasing transparency, reducing bias and ensuring accountability when AI systems are used in government decision-making. It also sets up a framework for oversight as AI tools become more common in areas such as data analysis, public services and administrative processes.
Supporters said the legislation positions Texas to address AI risks early, while still allowing innovation to continue.