Austin voters will decide on a Tax Rate Election (TRE) on November 4, 2025. The City of Austin is seeking approval for a property tax rate increase of 16.9%, which would fund the city’s $6.3 billion budget and add over $415 million in new spending, including more than 100 new city positions.
Under state law, any property tax increase above 3.5% requires voter approval. If Proposition Q passes, property tax revenues will rise by the full proposed amount. If it fails, taxes will still increase by 3.5%, the maximum allowed without a vote.
The average homeowner could see their annual city property tax bill rise by about $302.64, or $25.22 per month under the TRE proposal. When considering other costs such as utilities and fees, the total average monthly increase for ratepayers would be $34.77, totaling $417.24 per year.
Since 2004, Austin’s property tax revenues have increased by 329%. According to estimates, every additional $1,000 in living costs may price out approximately 750 families from the area.
Revenue generated from the TRE would go toward core city services such as homelessness response, public safety, EMS staffing, parks maintenance, youth programs, and public health initiatives like rapid rehousing and wildfire risk management.
Austin businesses contribute significantly to local property taxes; higher rates can impact their operating costs and affect workforce affordability at a time when economic indicators suggest regional slowdowns in housing demand and sales tax revenue.
A statement from city officials notes: “Your property tax bill is a direct result of the budget and spending choices made by local elected officials.”
Each penny added above the voter-approval rate brings in an estimated $21.6 million in additional revenue for the city.
Voters are encouraged to check their registration status with county election offices or through state portals ahead of early voting and Election Day.
For more information about Proposition Q or to access resources on how this measure could affect residents and businesses:
– Board of Director’s Statement [here]
– Learn more about Prop Q [here]
– One pager explainer sheet [here]
– Advocacy work details [here]
The adopted FY 2025–26 tax rate is set at $0.574017 per $100 of assessed value—up from last year’s rate of $0.4776 per $100—according to official City of Austin documents.
