Most city, county, and school district officials 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 skyrocket.
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 McKinney.
According to the city’s Notice of Public Hearing on Tax Increase, the average McKinney homeowner’s tax bill could soon rise by 7.32% or by an additional $156.15 per year. Should officials adopt the proposed tax rate, then the city’s total tax burden will grow from $2,132.69 to $2,288.84 annually.
One reason for the dramatic tax increase is that city hall appears tempted to hold rates steady while property values also rise.
For 2025-26, officials have proposed adjusting the tax rate from $0.415513 per $100/value to $0.413921 per $100/value, which represents a very small decrease of 0.38%. At the same time, the average homestead’s taxable value is also expected to grow by 7.73%. The combination of these two factors—a steady rate & higher values—will force tax bills up.
Of course, there is no requirement that McKinney officials adopt the proposed tax rate. In fact, officials have the discretion to choose a better, friendlier option, 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 2025-26, the NNR rate ($0.398018 per $100/value) is less than the proposed tax rate ($0.413921 per $100/value), with the difference equating to almost 2-cents per $100/value.
Tax-weary Texans will be able to voice any concerns about the higher rate and the growing cost of government at an upcoming formal hearing. According to the city, interested parties should be on the lookout for:
- A PUBLIC HEARING ON THE PROPOSED TAX RATE WILL BE HELD ON September 2, 2025 AT 6:00 PM AT City of McKinney – Council Chambers, 401 E Virginia St., McKinney, TX 75069.
