Budgets · Property taxes · Elections
Follow the rate, the budget, and the outcome year over year
Less than a year after Austin voters rejected a 57.4017¢ city property tax rate, the City Manager has proposed a 57.9530¢ rate for fiscal year 2026-27. This time, the City describes the proposal as the voter-approval rate—the highest calculated rate it can adopt without another tax-rate election.
The proposal is part of a $6.625 billion citywide operating budget. For the City's example median non-senior homestead, the estimated City property tax bill rises from $2,074.28 to $2,248.15, an increase of $173.87. The City says the combined annual increase from property tax and proposed utility and service rates would be $345.95 for its typical tax-and-ratepayer example.
On July 30, Council approved a maximum proposed rate for the required notice and public hearing. The action record expressly says that was not the final vote to set the FY 2026-27 tax rate; adoption remains scheduled to begin August 12.
Important distinction: Proposition Q asked voters for a rate five cents above the 2025 voter-approval rate. The 2026-27 proposal goes up to the newly calculated voter-approval rate, so it is a different legal path even though the proposed total rate is now higher than the rate voters rejected.
| Fiscal year | Original Council / Manager position | Effective or proposed rate | Median homestead City tax | Outcome |
|---|---|---|---|---|
| 2024-25 | Rate adopted within the legal limit | 47.7600¢ | $1,969.52 | Baseline year |
| 2025-26 | 57.4017¢ adopted contingent on Proposition Q | 52.4017¢ | $2,074.28 | Voters rejected the extra 5¢; Council amended the budget |
| 2026-27 | 57.9530¢ proposed at the voter-approval rate | 57.9530¢ proposed | $2,248.15 estimated | Not final as of August 1, 2026 |
Tax bills use the City's median non-senior homestead examples and include the 20% general homestead exemption. Because the example home value changes each year, tax-bill changes do not equal the percentage change in the tax rate.
Council set a 57.4017¢ rate—five cents above the 52.4017¢ voter-approval rate—and placed Proposition Q on the November ballot.
63.47% voted against the higher rate and 36.53% voted for it. The contingent five-cent increment could not take effect.
The final rate became 52.4017¢. The General Fund was reduced by $95.38 million from the August version, including $109.48 million less property tax revenue, while selected EMS, mental-health, and homelessness items were restored or increased.
The City Manager released and presented a $6.625 billion proposal using a 57.9530¢ voter-approval rate. The plan also proposes $5.1 million in social-service provider grant reductions and moves $19.4 million into City-operated shelter budgets; the City says that transfer does not change total funding.
Council approved the maximum proposed rate and set an August 12 tax-rate hearing, without taking final action on the rate. It also advanced an efficiency-initiative charter amendment to the November 3 ballot and approved a comprehensive citywide efficiency-study contract.
Council can amend the Manager's proposal before adopting the final budget and tax rate. This archive will replace proposed figures with adopted figures when that vote is complete.
Election Day: November 4, 2025
Proposition Q would have added five cents above the voter-approval rate and approximately $109.5 million in General Fund property tax revenue. After it failed, the tax rate fell from the contingent 57.4017¢ rate to 52.4017¢.
The City's own examples show that the typical median homeowner's City property tax still increased by $104.76 for FY 2025-26. Compared with the contingent budget's estimate of a $302.64 increase, the election outcome avoided roughly $198 of that proposed annual increase for the City's example homeowner.
The November 2025 amendment reduced the General Fund from $1.579 billion to $1.484 billion. It did not reduce the headline all-funds budget by the same amount because Austin Energy, Austin Water, Aviation, and other enterprise funds make up most of the citywide total.
For 2026-27, the Manager proposes increasing citywide spending by 4.8% to $6.625 billion while making departmental reductions and reallocations. The proposal is not final; service cuts, grants, rates, and fees can still change during Council adoption.
On July 30, 2026, Council authorized a comprehensive efficiency study of City departments with Public Works LLC. The contract has an initial three-year term, up to two one-year extensions, and a maximum value of $5.23 million, subject to future funding.
Council also approved placing a charter amendment on the November 3, 2026 ballot that would require an independent affordability and efficiency initiative before any tax-rate increase and require the contractor to identify annual and multi-year savings. These are separate Council actions, not findings of a completed audit; this archive will track the study, the charter vote, and any documented savings.
Each budget cycle will be added to the record using the same questions:
Primary documents are used for rates and dollar figures. Local reporting is included for context and to preserve the public record.
Research was expanded with the local STORM knowledge-curation project, then every figure published here was checked against the linked City documents. Campaign-era pages are preserved as historical material and may contain estimates or arguments that differ from final adopted figures.
Open the complete 2025 Proposition Q campaign archive →
Original campaign analysis, letters, share graphics, and election materials
These related properties share the same evidence library and update cycle while keeping distinct editorial purposes.