Austin Property Tax Increase 2026: How Much More Will You Pay?

Austin residents are preparing for a complicated property tax season in 2026. Two of the biggest taxing authorities — the City of Austin and Travis County — are moving in different directions when it comes to how their increases are approved. Add in school taxes, community college taxes, and healthcare district taxes, and it’s clear that your property tax bill next year may look very different.

• Travis County has already approved a 9.12%. Under Texas law, disaster exceptions allow counties to raise rates above the usual 3.5% cap without voter approval. The new revenue is earmarked for flood recovery efforts.

• The City of Austin, on the other hand, has adopted a rate that exceeds the state’s voter-approval threshold, so Austin residents will decide in November 2025 whether to approve the higher tax rate. The city says the increase is necessary to fund housing affordability, public safety, and essential services.
  
  

How Each Entity Affects Your 2026 Tax Bill

Here’s how the major taxing entities stack up for FY 2025-26, with their rate changes and what that means for a home valued at $500,000:

➡️ Net change for a $500,000 home inside Austin: +$573 per year

Note: These figures are approximate, based on published tax rates from each jurisdiction. Actual rates and costs varies per property.

Historical Context: Combined Tax Rates

While individual rates shift up and down, the combined effect is what homeowners actually feel. Here’s how the total tax rate for a property inside Austin city limits (City + County + AISD + ACC + Central Health) has changed over recent years:

Note: These figures are approximate, based on published tax rates from each jurisdiction.

The big takeaway: while individual rates (like AISD’s) can decline, the overall combined tax rate has remained near or above $2.00 per $100 — meaning the average Austin homeowner continues to see property taxes as one of the largest costs of ownership.

What This Means If You’re a Homeowner

• Plan for higher bills: Expect about $573 more per year on a $500K home, before factoring in any appraisal increases.

• Check exemptions: Make sure your homestead, senior, or disabled exemptions are filed — they can significantly reduce your taxable value.

• Protest your appraisal: Rising rates compound with rising appraisals. Filing a protest with the Travis Central Appraisal District (TCAD) can help keep your taxable value lower.

What This Means If You’re a Buyer

• Factor taxes into affordability: At ~$2.10 per $100, a $500K home in Austin equals about $10,500 annually in property taxes, or $875 per month — just for taxes.

• Compare inside vs. outside city limits: Homes outside Austin city limits don’t pay the City tax portion, which can lower monthly costs.

• Ask about exemptions: Exemptions don’t stop tax rates from going up, but they soften the impact by lowering the portion of your home’s value that gets taxed. Every homeowner should confirm they have all the exemptions they qualify for on file with TCAD.

What This Means If You’re a Seller

• Expect more buyer questions: Taxes are part of affordability. Be ready to explain the tax rate breakdown.

• Emphasize exemptions: Buyers may value properties with exemptions already locked in.

• Adjust pricing expectations: Rising taxes shrink buyer budgets, which can affect what offers you receive.

Make Your Voice Heard

If you’re concerned about rising property taxes, you do have options:

• Vote: The City of Austin’s higher rate will be on the ballot in November 2025. Mark your calendar — this vote directly determines whether the city’s increase sticks.

• Attend public hearings: Both the City and County hold public budget and tax hearings each summer. You can speak directly to elected officials about your concerns.

• Contact TCAD: If your appraisal feels too high, file a protest with the Travis Central Appraisal District (traviscad.org) during the spring protest window.

• Email your representatives: City Council members and County Commissioners want to hear from their constituents. Writing or calling their offices can help highlight affordability concerns.

Bottom Line

Homeowners inside city limits face both a locked-in County increase and a City increase that will be decided by voters. On a $500K home, the net change is about $573 more per year, even with AISD’s slight rate reduction.

For homeowners, buyers, and sellers alike, understanding these changes — and knowing how to vote, protest, or plan around them — will be critical for navigating Austin’s affordability challenges in the year ahead.