Travis County residents will soon have an opportunity to weigh in on a proposed property-tax increase supporting a preliminary $2.32 billion county budget for fiscal year 2027.

The Travis County Commissioners Court is scheduled to hold a public hearing and adopt the county’s property-tax rate Tuesday, Sept. 15. A separate public hearing and vote on the final FY 2027 budget are scheduled for Sept. 29.

According to the county’s official FY 2027 preliminary budget, the proposed spending plan totals $2,316,213,712 across all funds. That represents an increase of approximately $157.8 million, or 7.31%, from the county’s adopted FY 2026 budget.

The preliminary budget includes approximately $1.62 billion in the General Fund, which supports many of the county’s primary operations and services. That amount is approximately $65.3 million, or 4.19%, higher than the previous fiscal year.

Because the budget remains under consideration, spending amounts and individual allocations could change before commissioners take their final vote.

How would the proposed Travis County tax rate affect homeowners?

Travis County has proposed a tax rate of $0.386210 per $100 of taxable property value for the 2026 tax year, which funds the county’s 2027 fiscal year.

That is higher than both the current county rate of $0.375845 and the no-new-revenue rate of $0.378179. The no-new-revenue rate is the rate calculated to generate approximately the same property-tax revenue from properties taxed in both years.

The proposed rate is also equal to—but does not exceed—the county’s voter-approval rate. Therefore, the county is not required to hold an election before adopting it.

Although the proposed rate would rise by approximately 2.76%, the effect on an individual homeowner would also depend on the property’s taxable value and applicable exemptions.

The county estimates that the average taxable homestead value declined from $515,213 to $502,989. At the proposed rate, the county portion of the property-tax bill on that average homestead would increase from approximately $1,936.40 to $1,942.59—a difference of $6.19 per year, or about 52 cents per month.

For a median-value homestead, the county projects a different result. The median taxable homestead value declined from $391,064 to $372,633. Based on the proposed rate, the county estimates that the tax bill on that property would decrease by $30.64, from $1,469.79 to $1,439.15.

Those estimates apply only to the Travis County portion of a property owner’s total tax bill. School districts, cities, hospital districts, community colleges and other local taxing entities establish their own rates.

Countywide, the proposed rate would generate an estimated tax levy of approximately $1.248 billion—about $21.6 million, or 1.8%, more than the previous year.

What is included in the proposed Travis County budget?

County officials describe the FY 2027 preliminary budget as a plan to maintain existing services while addressing higher operating, healthcare, technology and personnel costs.

During development of the budget, offices and departments were required to identify possible reductions equal to 5% of their target budgets. The county ultimately recommended more limited reductions after revising its healthcare assumptions and making employee health-plan changes.

The preliminary budget assumes an 8% increase in healthcare rates for Travis County, employees and retirees. The county’s Health Benefit Fund would grow from approximately $126.1 million to nearly $145 million—an increase of roughly $18.9 million, or 14.97%.

Other proposed priorities include:

• Continuing mental and behavioral health services for people with serious mental health conditions
• Adding staff to support direct services through Health and Human Services
• Increasing direct-service support for veterans
• Providing additional resources for indigent defense and legal expenses
• Supporting jail-diversion efforts through Pretrial Services staffing and electronic monitoring
• Addressing higher operating, healthcare and facility costs within the Sheriff’s Office and Juvenile Probation
• Maintaining county buildings and technology systems
• Identifying additional polling locations that comply with federal requirements
• Preserving county parks and expanding recreational opportunities
• Adding resources for park rangers and natural-resource programs

The budget also includes funding through the voter-approved Raising Travis County initiative, which is intended to improve access to affordable child care.

Debt payments and employee healthcare contribute to budget growth

The county’s proposed General Fund is not the only portion of the budget increasing.

The Debt Service Fund would rise from approximately $169.4 million to $181.5 million, an increase of about $12.1 million. The debt-service portion of the proposed tax rate would increase by approximately 10.59%, from $0.042021 to $0.046473 per $100 of taxable value.

The maintenance-and-operations portion would rise more modestly, increasing from $0.333824 to $0.339737.

Other county funds would increase by approximately $71.9 million. These include programs supported by dedicated or restricted revenue sources, meaning the entire $2.32 billion budget is not financed solely through the General Fund or property taxes.

Travis County’s overall taxable property value is estimated at approximately $325.2 billion. That figure includes about $5.73 billion in new property added to the tax roll—approximately $1.5 billion less in new value than the county included in the previous year’s estimate.

Homestead exemptions continue for Travis County property owners

Travis County continues to provide the maximum general homestead exemption allowed under state law, reducing a qualifying residence’s taxable value by 20%.

Commissioners also increased the county’s additional exemption for homeowners who are 65 or older or have a qualifying disability. That exemption rises from $143,220 to $145,269 for the 2026 tax year.

County budget documents estimate that the change would reduce the Travis County portion of the tax bill for a qualifying homestead by approximately $7.91 compared with what the homeowner would have paid under the previous exemption at the proposed rate.

How can Travis County residents participate?

The public hearing on the proposed tax rate is scheduled for 9 a.m. Tuesday, Sept. 15, in the Travis County Commissioners Courtroom, located on the first floor of 700 Lavaca Street in Austin.

The proposed rate is scheduled for consideration following the hearing. Commissioners are then expected to hold the final FY 2027 budget hearing and consider adopting the budget Sept. 29.

Residents may review budget documents and provide feedback through the county’s FY 2027 Budget Development and Tax Rate Information page. Additional information about the proposed rate, including the county’s calculations for average and median homesteads, is available in the official notice of public hearing on the tax increase.

Until commissioners complete those votes, both the tax rate and the $2.32 billion spending plan remain proposed.

By Tiffany Krenek, My Neighborhood News 

Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.

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