New Texas Laws for 2026: What Families and Businesses Need to Know
Texas’s legislature meets only every other year, so most of the laws shaping 2026 actually took effect September 1, 2025 — the default effective date for bills passed in the 2025 regular session — with a second, smaller wave starting January 1, 2026. Between the two, family law, business, insurance, and property rules all saw real changes. Here’s what’s actually relevant as 2026 gets underway.
Family Law: Custody, Support, and Protective Orders All Changed
Several updates from the 2025 session reshaped how Texas family courts handle some of the most common — and most contentious — issues:
- Child support calculations changed. Effective September 1, 2025, the net monthly resources cap used to calculate the maximum guideline child support obligation rose from $9,200 to $11,700. The percentage guidelines themselves (20%–40% depending on the number of children) didn’t change, but higher-earning parents can now be ordered to pay more before the cap kicks in.
- HB 2350 made it easier for extended family to seek custody after both parents have died, expanding standing to petition for conservatorship to great-aunts, great-uncles, and first cousins, and making it easier for more relatives to intervene in existing custody cases.
- Protective orders got stronger. HB 793 requires courts to protect an applicant’s home address and contact information when confidentiality is requested; SB 1559 clarified that protective orders take priority over conflicting custody or divorce orders regarding contact and exchange locations; and SB 1120 extends protective orders up to two years past a final divorce decree or custody order.
- HB 3181 raises the stakes for violating custody orders: after three contempt findings for denying court-ordered possession, judges can no longer waive probation or attorney’s fees, must order double makeup time, and the third finding alone counts as a “material change in circumstances” that can support a custody modification request.
Business Courts and Corporate Governance
Texas created its specialized business courts in 2023, and the 2025 session refined how they work. HB 40 clarified jurisdiction and procedure for the business courts that now handle complex commercial disputes — mergers, shareholder fights, and similar high-stakes business litigation — giving Texas one of the clearer specialized commercial court systems in the country (a contrast worth noting for anyone comparing it to neighboring states still fighting over whether to create one at all).
SB 2411, effective September 1, 2025, expands exculpation provisions that let corporations limit officers’ personal monetary liability and streamlines the approval process for major business transactions. Combined with an increased R&D franchise tax credit under SB 2206 (up to 8.722%, or 10.903% for university research partnerships), the 2025 session leaned toward making Texas more business-friendly on both the litigation and tax side.
Insurance: Insurers Now Have to Explain Themselves
HB 2067, effective January 1, 2026, requires insurers to provide written reasons when they decline to issue a policy, cancel one, or refuse to renew — and requires regular ZIP-code-level reporting to the Texas Department of Insurance. For policyholders who’ve had a policy dropped or non-renewed without a clear explanation, this gives them a statutory right to one, and it creates a public data trail that can reveal patterns in how insurers treat particular neighborhoods or regions.
Property, Real Estate, and Disaster Recovery
- SB 38, effective January 1, 2026, speeds up eviction procedures in justice courts specifically for unauthorized occupants — commonly called squatters — while preserving basic tenant notice and hearing rights.
- HB 30, also effective January 1, 2026, protects homeowners and local governments after a natural disaster by preventing certain post-disaster property tax increases above voter-approved limits without an election, and allows local governments to use a “disaster debris rate” to cover cleanup costs.
- SB 840 now allows apartments and mixed-use development on commercially zoned property in large cities without requiring a rezoning process — a significant change for developers and property owners in fast-growing areas.
- HB 9 raises the business personal property tax exemption to $125,000, letting businesses exclude more inventory, equipment, and tangible property from local property tax rolls.
Employment and Emerging Technology
HB 3699, effective January 1, 2026, streamlines the initial unemployment compensation claims process so claimants can receive benefits faster. On the technology side, HB 149 establishes a regulatory framework for artificial intelligence systems, restricting harmful or discriminatory uses and requiring disclosure when AI is used in certain contexts — an early sign of how Texas intends to handle AI governance as more businesses adopt it.
Why This Matters
Because Texas only legislates every two years, the laws that took effect in the second half of 2025 are still the newest rules on the books heading into 2026 for most Texans — and many people won’t run into them until they’re already negotiating a divorce, filing an insurance claim, or dealing with an eviction. Knowing which rules changed, and when, is the difference between being caught off guard and being prepared.
Franden Farris represents clients across Texas in the family law, insurance, business, and property matters most affected by this year’s changes. If one of the updates above touches something you’re dealing with, [reach out to our team] to talk through what it means for you.
This post is for general informational purposes only and does not constitute legal advice. Laws and effective dates are subject to amendment or legal challenge — contact our office to discuss how current Texas law applies to your specific situation.