Austin property taxes fund essential services like schools, roads, police, and parks. Here’s what you need to know:
- Austin’s 2024-2025 property tax rate is $0.4776 per $100 of taxable value.
- The median home value in Travis County is $519,677, with a median taxable value of $401,879 after exemptions.
- Property taxes account for nearly 50% of Austin’s General Fund, supporting public safety, education, and community services.
- Rising property values and population have increased property tax revenue by 4.1% in 2025, with assessed values reaching $482 billion.
Quick Example: A $550,000 home in Austin faces an average tax bill of $11,244, split between city, county, school districts, and others.
Key Takeaways:
- Exemptions matter: Homestead exemptions can save you over $117,000 in taxable value.
- Taxes fund critical services: Police, fire, schools, parks, and infrastructure rely heavily on property taxes.
- Review your assessment: Protesting inflated property values can lower your tax bill.
Understanding your property taxes empowers you to manage costs and stay informed about how your money supports the community.
Austin Property Tax Numbers: Rates and Revenue
Tax Rates and What Homeowners Pay
For the 2024-2025 fiscal year, Austin’s property tax rate is $0.4776 per $100 of taxable value. This means homeowners are charged 47.76 cents for every $100 of their property’s assessed value, after any exemptions are applied.
This rate reflects a 34% increase from the 2021-2022 rate, meaning homeowners with median-priced properties are paying about one-third more than they did just a few years ago. The actual amount depends on a property’s assessed value. For instance, a home valued at Austin’s median price of $577,400 results in annual property taxes of approximately $10,451. With an overall property tax rate of 1.81%, Austin ranks among the highest in Texas.
However, the tax burden can vary depending on the county. Most of Austin is in Travis County, where the median home value is $519,677, and the median taxable value is $401,879. County-specific rates significantly influence the total taxes homeowners pay.
Now, let’s look at how these rising rates and increasing revenue shape the city’s budget and funding.
Revenue Changes Each Year
The growth in property tax revenue tells a broader story about Austin’s fiscal landscape. Rising property values and population growth have driven significant increases in revenue. Travis County’s property tax revenue highlights this trend:
| Year | Property Tax Revenue | Per Capita Revenue | Total Net Assessed Value |
|---|---|---|---|
| 2024 | $939,858,858 | $693 | $314,839,000,000 |
| 2023 | $908,172,188 | $679 | $286,348,000,000 |
| 2022 | $825,091,208 | $626 | $235,069,000,000 |
| 2021 | $798,311,569 | $613 | $217,252,000,000 |
| 2020 | $744,590,781 | $577 | $204,547,000,000 |
The assessed value in Travis County climbed 4.1% to $482 billion in 2025, continuing a steady rise. Across Texas, property tax levies have grown by an annual average of 5.6% from 1998 to 2023.
Property taxes now account for a larger share of Austin’s general fund than a decade ago. Back in 2010, they made up less than 38% of the fund, but today they cover nearly 50% of spending. This shift underscores the city’s growing reliance on property taxes to fund essential services.
Still, the city faces financial challenges. City Manager T.C. Broadnax addressed these concerns, stating:
"Given the uncertainty in the global and national economy and the effect of property tax caps, we knew we’d be facing headwinds this year. We’ve prepared for them and will adjust as necessary. My job is to present a balanced budget for the City Council’s consideration in July, and we will get there while keeping the priorities of our community front of mind."
Looking ahead, Austin could encounter annual budget shortfalls of up to $80 million by the 2029-30 fiscal year, illustrating the ongoing tension between rising costs and revenue limitations.
Tax Exemptions and Savings
Homeowners in Austin can take advantage of several exemptions to lower their property tax bills. The most common is the homestead exemption, which reduces the taxable value of your primary residence.
It’s important to verify exemptions every year to ensure you’re receiving all the savings you qualify for. Leana Mann, Chief Appraiser for the Travis Central Appraisal District, highlights the need for vigilance:
"Property owners can review their 2025 values on our website and should expect to receive their Notices of Appraised Value over the next few weeks. This is the perfect time to review your property’s information, verify your exemptions, and learn more about the protest process."
The difference between a property’s market value and its taxable value illustrates how exemptions work. For example, in Travis County, the median market value for residential homestead properties is $519,677, while the median taxable value is $401,879. That’s a savings of over $117,000, thanks to exemptions and other reductions.
If you think your property’s assessed value is too high, you can file a protest with the appraisal district. This process gives you the chance to challenge the valuation and potentially lower your tax bill. With Austin’s property values changing so quickly, it’s smart to review your assessment annually.
To stay informed and maximize your savings, visit the Travis Central Appraisal District website. Tax exemptions play a crucial role in reducing your overall property tax burden and are an important part of any homeowner’s financial strategy.
How Much Are Property Taxes in Austin? – CountyOffice.org
Where Austin Spends Property Tax Money
Understanding how Austin allocates property tax revenue sheds light on why tax rates continue to rise. These funds are distributed across key areas that keep the city functioning, with the largest shares going to public safety, education, and community-focused services. Let’s break down how these allocations impact the daily lives of Austin residents.
Police, Fire, and Emergency Services
Public safety takes the biggest chunk of Austin’s property tax–funded General Fund. In 2022 alone, police, fire, and emergency services accounted for $785 million in the proposed budget. From 2017 to mid-2024, spending on public safety dropped from 68% to 62% of the General Fund. Of that, 35% supports the Austin Police Department (APD), 18% goes to the Fire Department, and 9% is allocated to emergency services.
For 2024, APD’s proposed budget increased slightly to just over $490 million – a 2.7% rise compared to the previous year. However, Austin’s approach to police funding has been a hot topic since 2020, when the city reduced its police budget and redirected funds to alternative public safety programs. This move sparked statewide controversy, eventually leading to legislation that prohibits cities from cutting police budgets.
Schools and Infrastructure
Education and infrastructure also rely heavily on property tax revenue, though the funding processes can be tricky to navigate. For example, Austin ISD estimates that 52.4% of its local tax revenue will be subject to recapture in fiscal year 2024–25. This means the district expects to send $821 million back to the state during that period. Over the years, from FY2000–01 to FY2024–25, Austin ISD will have paid a staggering $8.3 billion in recapture funds to the state.
Transportation infrastructure is another major recipient of property tax dollars, often boosted by voter-approved measures. In 2020, Austin residents supported a 20% tax increase to fund Project Connect, a transformative light rail and rapid bus system. That same year, Proposition B allocated $460 million in bonds for infrastructure improvements like sidewalks, trails, and other large-scale projects.
On a broader scale, state lawmakers recently approved an $8.5 billion package for public schools, which includes teacher pay raises, special education funding, and early childhood programs. Another $10 billion was set aside for critical energy, water, and broadband infrastructure upgrades. These investments, paired with local initiatives, aim to address both immediate needs and long-term growth.
Parks, Libraries, and Community Services
Community services – including parks, libraries, public health, and housing programs – make up 23.6% of Austin’s General Fund. When you add in other departments like parks and recreation, Austin Public Health, and housing initiatives, the total allocation rises to roughly 30% of the General Fund. This funding directly benefits residents by maintaining parks, greenspaces, and community education programs.
Yasmine Smith from the Austin Area Urban League highlighted the importance of these services:
"We need is a city prepared to use our hard-earned taxpayer dollars on the priorities that unite people across this community: functioning parks, libraries, community centers".
In total, about 25% of Austin’s $3.9 billion budget comes from the General Fund, with 44% of that funded by property taxes. This means your property tax payments support a wide range of initiatives, even beyond those directly tied to the General Fund.
City Manager Spencer Cronk recently shared an optimistic view of Austin’s financial outlook:
"For the first time since the pandemic hit and the state revenue cap has been in place, our five-year projection … indicates balanced budgets over each of the next four years and only a nominal deficit in year five. Obviously, these are only projections, and given the tumultuous few years that we’ve all lived through, we would be wise to expect the unexpected."
To ease the property tax burden, the city is also working to diversify its revenue sources. By relying more on city fees for services like electricity and trash collection, Austin hopes to maintain essential services while reducing its dependence on property taxes.
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How Property Taxes Affect Austin Residents
Property taxes play a big role in shaping the financial landscape for Austin residents. They influence housing costs and help fund essential public services. Understanding how these taxes impact your budget and your community can help you make smarter financial choices and stay informed about local government priorities.
Tax Bills and Payment Dates
Austin homeowners face some of the highest property tax rates in Texas. As of 2025, the average property tax rate is about 2.1%. For a home valued at $550,000, this translates to an annual tax bill of approximately $11,244. This amount is divided among several taxing entities:
| Taxing Entity | Rate (per $100) | Example Tax on $550,000 Home |
|---|---|---|
| City of Austin | $0.4623 | $2,542.65 |
| Travis County | $0.3745 | $2,059.75 |
| Austin ISD | $1.1027 | $6,064.85 |
| Austin Community College | $0.1048 | $576.40 |
| Total Combined Rate | $2.0443 | $11,243.65 |
Property tax payments are due by January 31st (or the next business day). Late payments come with a 6% penalty plus 1% interest starting February 1st. Additional monthly penalties and interest can increase the total by as much as 41.6% by July 1st.
Even renters feel the pinch, as landlords often pass on higher property tax costs. With Austin’s median monthly rent at $1,753 as of September 2023, these increases can strain budgets. While the tax burden can be heavy, the revenue funds critical services that improve the community.
Service Improvements from Tax Revenue
For the fiscal year 2024–25, property tax revenue is expected to grow by 8.1%, adding $84,195,062 to the budget, along with $25,951,155 from new developments. Property values in Travis County have surged by over 50% since last year. This growth cycle allows for expanded funding of schools, roads, and emergency services, directly benefiting the community.
Texas relies heavily on property taxes to meet local funding needs. The Texas Comptroller’s office explains:
"Texas has no state property tax. Local governments set tax rates and collect property taxes to provide many local services including schools, streets, roads, police and fire protection".
Statewide property tax collections have climbed more than 20% since 2017, with Texans paying an estimated $73.2 billion in 2021. These funds are vital for maintaining the infrastructure and services that make Austin an appealing place to live and work.
For homeowners looking to manage rising tax bills, there are options to ease the financial strain. Taking advantage of exemptions, like the homestead exemption, can lower your annual tax bill significantly. Additionally, property owners can protest their appraised value if it seems inflated compared to similar properties. Staying engaged in local elections and government meetings is another way to stay ahead of proposed budget and tax rate changes.
In short, property taxes are a double-edged sword – while they can strain your wallet, they also fuel the services that support Austin’s vibrant community. Understanding how they work can help you make informed decisions about your housing and finances.
How Austin Sets Property Tax Rates
Setting property tax rates in Austin is a detailed process that begins with property valuations and concludes with decisions about the city’s budget. The Travis Central Appraisal District (TCAD) handles property assessments, which the city then uses to estimate revenue and establish tax rates. This process explains why your property tax bill can fluctuate from year to year.
Property Value Assessment
The Travis Central Appraisal District is tasked with appraising all properties in Travis County. Their mission is:
"to provide accurate appraisal of all property in Travis County at one hundred percent market value, equally and uniformly, in a professional, ethical, economical and courteous manner, working to ensure that each taxpayer pays only their fair share of the property tax burden".
To determine property values, TCAD uses three main appraisal methods, depending on the property type:
| Appraisal Method | Best Used For | How It Works |
|---|---|---|
| Sales Comparison (Market) Approach | Single-family homes and vacant land | Compares recent sales of similar properties |
| Income Approach | Apartments, retail, office buildings | Calculates value based on income potential |
| Cost Approach | New construction and unique properties | Estimates replacement cost minus depreciation |
TCAD follows strict standards, complying with the Uniform Standards of Professional Appraisal Practice (USPAP) to ensure consistency when appraising similar properties. Factors like square footage and location are also considered, as these can significantly impact a property’s market value.
Texas law requires appraisal districts to reappraise all properties at least once every three years. This ensures valuations stay current with market conditions.
What You Can Do: If you think your property’s assessed value is incorrect, you can file a rendition by April 15th (or May 15th with an extension) to provide your own valuation. Additionally, if your property value increases by more than $1,000 from the previous year, you have the right to protest the valuation with the Appraisal Review Board (ARB) [36,37].
Once these appraisals are complete, the city uses the assessed values to guide its budget and tax rate decisions.
City Budget Planning
After TCAD determines property values, the city uses those figures to estimate revenue and develop its annual budget. This budget dictates how much funding is available for essential services, such as public safety and infrastructure.
Revenue Projections: The city calculates revenue by multiplying assessed property values by potential tax rates. For fiscal year 2024–25, property tax revenue is projected to grow by 8.1%, adding $84,195,062 to the budget. An additional $25,951,155 is expected from new developments.
Balancing Needs and Costs: Austin constantly navigates the challenge of funding services for a growing population while maintaining affordability for residents. In 2024, the average property tax rate in Austin was 1.86% of the assessed value.
Public Input Matters: Texas law ensures transparency in the tax-setting process. As the Texas Legislature explains:
"The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your taxes should be directed to those officials".
Public hearings are required when the city proposes significant tax rate increases, giving residents the chance to voice their opinions and learn how tax dollars will be distributed.
Spending Priorities: Property tax revenue is allocated based on community needs. Public safety services – like police, fire, and emergency response – often receive the largest share. Other priorities include infrastructure maintenance, parks, libraries, and community programs.
Exemptions and Limits: The city also considers various exemptions and caps that reduce the taxable value of properties. For instance, in 2025, the circuit breaker limitation applies to properties with a maximum value of $5,160,000. These exemptions lower overall revenue and are factored into budget planning.
This entire process ties property valuations to the funding of public services. While higher property values can mean more resources for community improvements, they also result in bigger tax bills for property owners.
Why Understanding Your Property Taxes Matters
Knowing how tax revenues support Austin’s services is just the start – understanding your own property taxes is essential for both your wallet and your role as a community member. Property taxes are Austin’s largest funding source for public services, making it crucial to grasp how the system works. With Austin’s median effective property tax rate at 1.59%, well above the national median of 1.02%, these taxes can significantly impact your monthly housing budget.
Take charge of your finances. Levi Rodgers, a Real Estate Broker and retired U.S. Army Green Beret, highlights the importance of understanding the appraisal process and available exemptions:
"Being familiar with the dynamics of how TCAD appraisals work, what exemptions you qualify for, and protesting overvaluations empowers you to minimize your annual tax burden".
For example, the homestead exemption offers a $100,000 reduction in taxable value for school district taxes, and seniors aged 65 and older can further reduce their taxable home value.
Plan ahead. Property tax rates and assessed values vary widely across Austin, depending on factors like school district boundaries and special taxing districts. Knowing these differences can help you make smarter decisions when buying a home or preparing for annual tax changes. Rodgers also emphasizes the importance of preparation:
"Proactive planning – such as budgeting for annual increases, researching neighborhoods thoroughly, and scheduling escrow payments – won’t catch you off guard or leave you red-faced either".
Stay informed and engaged. Property taxes fund critical services like schools, police, fire departments, road maintenance, parks, and libraries. In Texas, numerous local taxing units assess these taxes. By staying informed about local elections, school bond proposals, and rate changes, you can better predict future tax trends and hold officials accountable.
The cost of not paying attention can be steep. Missing exemptions, failing to challenge inaccurate appraisals, or being unprepared for rate increases could cost you thousands each year. Since local governments – not the state – set these rates, your involvement in local politics directly affects your tax bill.
Understanding Austin’s property tax system isn’t just about saving money – it’s about being an active participant in the decision-making processes that shape your community. This knowledge not only helps you manage your finances but also equips you to engage with local policies that influence Austin’s future.
FAQs
What steps can Austin homeowners take to maximize their property tax savings?
Austin homeowners have a great opportunity to cut down on property taxes by taking advantage of exemptions like the homestead exemption, which reduces the taxable value of their primary residence. There are also specific exemptions for seniors, disabled individuals, and veterans that can lead to even more savings.
To get the most out of these options, it’s important to apply on time, meet the eligibility criteria, and review your property’s assessed value each year to ensure it aligns with current market trends. Being proactive and staying informed can go a long way in reducing your tax burden.
What can Austin homeowners do if they think their property value has been overassessed?
If you think your property’s assessed value doesn’t reflect reality, the first step is to review your appraisal notice for any errors. Check for things like incorrect square footage, outdated property details, or other inaccuracies. Next, gather evidence to back your claim. This might include recent photos of your property, documentation of needed repairs, or sales data from similar homes in your neighborhood.
To challenge the assessment, you can file a protest with the Travis Central Appraisal District (TCAD). Submissions can be made online through their portal or by mail. Just make sure your protest is filed before the May 15 deadline to guarantee your case gets reviewed.
How does Austin’s property tax distribution affect funding for schools and public services?
In Austin, property tax revenue is a key source of funding for essential public services. A large chunk – about 52.2% – of the revenue collected is subject to state recapture, which directly affects local school budgets. Beyond education, these taxes also fund critical services such as police, fire departments, and city infrastructure, all of which contribute to the safety and daily quality of life for residents.
However, while higher property taxes can mean better funding for these services, they can also put added financial pressure on homeowners, impacting affordability and the overall well-being of the community. Knowing how these funds are distributed helps residents understand the link between their taxes and the services they depend on.
