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 government action will cause tax bills to soar.
Given the very real prospect of near-term 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 getting priced out.
To better illustrate what may be at stake, consider the city of Killeen.
According to its newly-published Notice of Public Hearing on Tax Increase, the average Killeen homeowner’s tax bill could soon rise by 12.58%, or an additional $183 per year. Should local elected officials adopt the proposed tax rate, then the city’s total tax burden will grow from $1,454 to $1,637 annually.
One reason for such a heightened increase is that Killeen city officials are considering imposing higher tax rates while at the same time property values grow.
For 2025-26, officials have proposed increasing the tax rate from $0.6573 per $100 of value to $0.7014 per $100 of value, representing a growth of 6.7%. Meanwhile, the average homestead’s taxable value is expected to rise by 5.52%. The combination of these two factors—higher rates, higher values—will force tax bills up.
Of course, there is no requirement that Killeen officials adopt the proposed tax rate. In fact, there is a better, friendlier option available for officials to consider, which is the no-new-revenue (NNR) tax rate. 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 ($0.6487 per $100 of value) is considerably less than the proposed tax rate ($0.7014 per $100 of value), with the difference equating to more than 5-cents.
Tax-weary Texans will be able to voice their concerns at an upcoming formal hearing. Per the city’s public notice, the date, time, and location are listed below.
