Most cities, counties, and school districts are right now in the process of adopting budgets and determining tax rates for the next fiscal year. In some cases, these local decisions will increase the cost of government and put upward pressure on property tax bills. In a few cases, local governments appear ready to absolutely wallop taxpayers.
Given the very real prospect of tax increases, now is the time for Texans to learn what’s happening in their communities and get involved in the decision-making process—while there’s still time. Doing so could mean the difference between being able to afford your home or not.
To better illustrate what may be at stake, consider the city of Austin.
According to its newly-published Notice of Public Hearing on Tax Increase, the average Austin homeowner’s tax bill could soon rise by 25.3%, or an additional $617.16 per year. Should city hall move to adopt this increase and voters approve it in November, then the city’s total tax burden will grow from $2,438.01 to $3,055.17 annually.
City officials have offered up many reasons for this Texas-sized tax increase—none of which ever seem to mention the city manager’s “business-class flights, high-end dinners and retirement parties costing thousands of dollars”—but prior analyses show that Austin’s taxes, spending, and debt have long trended in a direction that is neither affordable nor sustainable. So, it’s not surprising that the most progressive city in Texas is clamoring for another significant tax hike that will grow its levy by 24.2%.
If Austin wanted to do right by struggling taxpayers, city officials would reject the proposed tax rate and adopt the no-new-revenue (NNR) tax rate instead. The NNR rate is the tax rate that would effectively hold tax receipts constant and “giv[e] homeowners and businesses a chance to catch their breath.” For FY 2026, the NNR rate is $0.483319 per $100 of value or an astounding 12-cents less than what has been put forward.
A formal hearing on the city’s proposed tax rate is set to occur shortly. For anyone interested in showing up and speaking out, the public notice provides the following detail:
- A public hearing on the proposed tax rate will be held on August 13, 2025 at 10 a.m. at Austin City Hall, 301 W. Second Street, Austin, Texas.
