Here’s some background as to why “TX” is so commonplace in OSM:
Ignoring the states that held out against the convention of state postal abbreviations, Texas was one of the last states to get moved over to that convention. In 2014, it was still pretty easy to find “SH” on Texas roadways.
That would be incorrect. TxDOT has standardized on “SH” as the only acceptable abbreviation for “State Highway” on signs. I’m unaware of any source in the media or the software industry that reserves “SH” for toll roads only. The main parties that consistently use “TX” are OSM, TomTom (in navigation guidance data), and roadgeek websites.
Internally, TxDOT uses an elaborate system of two-letter abbreviations for various highway designations. Some of them are quite obscure, like “SL” for State Highway Loops. I don’t think we need to conform to what TxDOT uses internally, but “SH” (and to a much lesser extent “IH”) have been adopted by the public because of signage and frequent mentions in the media. Waze has similarly standardized on the “common speech” approach to tagging numbered routes. We’re almost there, except for this “TX” prefix.
These street name signs’ red color is a telltale indication that a county or local agency put them up. Small towns across the country often generically refer to “Highway” because they only have to worry about a single highway within their jurisdiction. Noncompliant red street name signs also seem to be a favorite of rural small towns in some states (Indiana being another).
Texas regulations allow 13 different designs for street name signs, none of which are red. The department doesn’t always follow the TMUTCD to a tee, but they normally wouldn’t go out of their way to violate it by procuring a custom rectangular red sign blank.