Government

City of Katy property owners have a new tax rate for 2026, and the city's required notice makes clear that the maintenance and operations portion will collect more than last year. According to the City of Katy, the adopted tax rate will effectively raise maintenance and operations taxes by 0.66%, increasing that portion of the tax bill on a $100,000 home by approximately $2.42.

The notice was issued by order of the Katy City Council following the city's Sept. 28, 2026 tax-rate proceedings. The city had scheduled a public hearing on the 2026 tax rate for 6:30 p.m. that evening at Katy City Hall, continuing the annual process in which the council sets the municipal property tax rate for the coming fiscal year.

What Katy Homeowners Should Know About the 2026 Tax Rate

Katy's tax information page lists the city's current 2025-2026 total property tax rate at $0.425000 per $100 of taxable value and the proposed 2026-2027 total rate at $0.420000 per $100. The city's newly issued adopted-tax-rate notice is specifically focused on the maintenance and operations portion of the rate, stating that it will generate more maintenance and operations taxes than last year's rate.

For additional context, the City Council approved a maintenance and operations rate of $0.374632 per $100 of assessed valuation for the 2025-2026 fiscal year. The city's latest notice does not provide a line-by-line breakdown of the newly adopted rate, but it does quantify the effect on the maintenance and operations portion using the $100,000-home example.

Actual city tax bills will vary by a property's taxable value and any exemptions that apply. The City of Katy offers a 20% residence homestead exemption, with a minimum exemption of $5,000, and also lists additional exemptions for qualifying residents age 65 or older, residents with disabilities and disabled veterans. Property owners must apply for exemptions through the appraisal district for the county in which the property is located.

Why the Change Matters Locally

For Katy homeowners, the practical takeaway is that the maintenance and operations portion of the city's property tax levy is expected to rise modestly even though the city's tax information page lists a lower proposed overall rate for 2026-2027 than the current year. Residents comparing year-over-year bills should look at their taxable value, exemptions and the final city tax-rate components rather than relying on the headline percentage alone.

The City of Katy publishes tax-rate information and financial documents through its Finance Department and public meeting pages. My Neighborhood News will continue following local budget and property tax updates that affect Katy-area households.

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