Austin homeowners may face a significant property tax increase due to pending decisions by the Travis County Commissioners Court and the Austin City Council.
A preliminary budget for the 2026 fiscal year released by county commissioners would increase the tax rate by over 9 percent. The report estimates that the proposal will increase the average property tax bill by $200.64, not including certain homestead exemptions.
Because portions of Travis County were declared a disaster area by Gov. Greg Abbott during the Central Texas floods a few weeks ago, Texas tax code allows the county to calculate and set a higher tax rate without voter approval.
Jose Melendez, campaign director for the Texas Public Policy Foundation’s Taxpayer Protection Project, told Texas Scorecard, “Natural disasters require a serious response but they should not be used as a cover for bloated budgets and financial mismanagement.”
The commissioners have until October 1 to officially set a new tax rate.
Meanwhile, the Austin City Council has already approved a 3.5 percent tax rate increase, the maximum allowed by law in a single fiscal year. This is coupled with the 6.2 percent increase in the proposed city budget.
Together with the 5 percent increase from the previous fiscal year, the city’s budget is set to increase by nearly 11 percent in just two years.
However, city council members have proposed a tax rate election that would increase the tax rate to as much as 7 percent. Austin City Councilman “Zo” Qadri made the announcement on X.
Councilmen cited threatened federal and state level cuts to grant funding as the impetus for this election, though the city has not lost any federal or state funding as of now.
TPPF’s Taxpayer Protection Project Policy Director James Quintero notes, “Left-leaning politicians constantly bemoan Texas’ affordability crisis, but they never resist an opportunity to raise taxes. Their actions speak louder than their words.”
The Austin City Council will meet again on August 13 to consider a proposed tax rate and hear public comments.
Gov. Greg Abbott has placed “legislation imposing spending limits on entities authorized to impose property taxes” on the special legislative session agenda.
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