As Austin-area homeowners receive their latest property tax bills this winter, they should expect to see an increase.
According to an analysis by the Travis County Tax Office, the average property tax bill this year for homeowners who live in their homes is $1,123 higher than last year, or about an 11% increase.
This is the largest projected jump in the average tax bill since at least 2014.
The increase comes after voters approved several propositions at the ballot box in November. Voters supported measures to increase teacher pay and help lower the cost of child care in the area, all of which will be paid for by raising tax rates.
Annual increases in property tax bills have been the norm for Travis County homeowners for at least the past decade. Since 2013, the average annual increase has oscillated between $282 and $536, according to a KUT analysis of tax office data. Property taxes fund the vast majority of public services in Texas, including those provided by cities, counties and public schools.
The rise in property tax bills this year comes even as Austin City Council members voted for property tax relief earlier this year and amid a yearslong fall in home values. In 2022, interest rates on mortgages began to rise following historic lows. The increase has made buying a house more expensive and pushed down prices and values of homes in Austin and across the country.
This year’s likely property tax increase comes after concerted efforts from lawmakers to bring bills down. In 2023, Texas voters approved a proposition put forward by lawmakers that allowed the state to take several actions to lower property taxes, including excluding a larger portion of a home’s value from the amount that is taxed.
In response, homeowners in Travis County got a respite last year from rising property taxes. The owner of an average-priced home likely saw a decrease in their bill of nearly $500 from the year before.
“Last year, the state provided some relief for property tax payers and it was certainly welcomed,” said Bruce Elfant, the Travis County tax assessor-collector. “This year, we’re kind of back to normal.”
Homeowners this year will likely also be hit by the ever-growing cost of insurance. Last year, rates on homeowners’ insurance in the state rose 21%, according to Rich Johnson, communications director for the Insurance Council of Texas.
Homeowners in Austin tend to pay more than homeowners across the country. According to census data, 17% of homeowners with a mortgage in the U.S. paid $2,000 or more a year for homeowners’ insurance. In Austin, that portion was closer to 27%.
While Johnson said insurance rates for this year are not yet final, he expects insurance providers to raise rates again, likely by at least 10%. He attributed the continued increase to a number of damaging storms and the resulting claims filed by homeowners this year.
“It was a pretty big year for losses,” Johnson said. “Everything from hail storms from San Antonio up through Dallas … and then the hurricane [Hurricane Beryl] that came through. All of that has to come into account when we’re looking at homeowner rates.”
Support for KUT’s reporting on housing news comes from the Austin Community Foundation. Sponsors do not influence KUT’s editorial decisions.
