Austin property taxes for 2026 come out to about $8,215 a year on a $500,000 homestead inside Austin city limits, Travis County and Austin ISD, according to Community Impact’s breakdown of the new rates. The City of Austin and Travis County raised their rates this year, Austin ISD lowered its rate, and bills are due February 1, 2027. As an Austin real estate agent, here’s how it works in plain English and how to make sure you’re not paying more than you should.

Key takeaways

• All Austin-area rates combined come to about $2.12 per $100 of taxable value for a home in Austin, Travis County and Austin ISD, before exemptions.
• Austin ISD is the biggest slice, about 40% of a typical bill.
• The school district homestead exemption is now $140,000, plus another $60,000 if you’re 65 or older or have a disability.
• 2026 bills are due February 1, 2027.
• Your tax rate depends on your exact address, so check it before you buy.

What are the Austin property tax rates for 2026?

Here are the 2026 rates per $100 of taxable value, as reported by Community Impact:

• City of Austin: $0.579948 (up from $0.524017)
• Travis County: $0.386210 (up from $0.375845)
• Central Health: $0.132863 (up from $0.118023)
• Austin ISD: $0.9184 (down from $0.9252)
• Austin Community College: $0.103643 (up from $0.1034)

Added together, that’s about $2.12 per $100 of value before exemptions. That’s not your final rate though, because each one applies its own homestead exemption. I know I know….Its confusing!!

How much are property taxes on a $500,000 home in Austin?

About $8,215 a year, for a $500,000 homestead inside Austin city limits, Travis County and Austin ISD, with each entity’s standard homestead exemption. Here’s roughly where it goes:

• Austin ISD: about 40%
• City of Austin: about 28%
• Travis County: about 19%
• Central Health: about 6%
• Austin Community College: about 6%

For the typical homeowner, the city portion goes from about $2,074 to about $2,190 this year. The Austin ISD bill for the median homeowner actually goes down, from $3,525 to $3,461 (Community Impact).

Did that number surprise you? It surprises a lot of people moving from out of state.

Looking at a specific home? Text TAXES and the address to 563.650.0452 and I’ll pull the full tax rate, any MUD or PID, and the HOA dues for you. Free.

Why are property taxes so high in Texas?

Texas has no state income tax (Texas Comptroller), so local governments and school districts rely heavily on property taxes. That’s the trade-off. You keep more of your paycheck, and you pay more on your house.

That’s also why the address matters SO much. Two homes 10 minutes apart can have very different rates depending on the city, school district, and whether there’s a MUD (municipal utility district) or PID (public improvement district). Newer communities in the suburbs often have one, and it can add a noticeable amount to your monthly payment.

How do I lower my property taxes in Austin?

File your homestead exemption

This is the big one, and it’s free. In November 2025, Texas voters raised the school district homestead exemption from $100,000 to $140,000 (Fox 4). Homeowners who are 65 or older or have a disability get another $60,000 on top of that, for up to $200,000 off their school taxable value (Fox 4). File with your county appraisal district once you live in the home. I remind every one of my buyers after closing. I also can help you protest your taxes when that time comes around!

Protest your appraisal

Every spring, the appraisal district mails a notice of appraised value. If you think it’s too high, you can protest. Bring recent sales of similar homes nearby. I’m happy to pull those for you, even if we closed years ago.

Know your homestead cap

Once you have a homestead exemption, the taxable value of your home generally can’t go up more than 10% a year, even if the market value jumps. One more reason to file right away.

When are Austin property taxes due?

2026 property tax bills go out in the fall and are due February 1, 2027 (Community Impact). Most homeowners with a mortgage pay through escrow, so the lender collects it monthly and pays the bill for you. If your taxes go up, your monthly payment usually adjusts at your next escrow review.

How do property taxes affect buying a home in Austin?

They’re a big part of your monthly payment, so I always compare total monthly cost, not just price. A cheaper house with a high tax rate can cost you more each month than a pricier house with a lower one. If you’re also comparing suburbs, read Round Rock vs Austin and what to know before moving to Austin.

What is a MUD or PID, and how does it affect my taxes?

A MUD (municipal utility district) or PID (public improvement district) is how a lot of newer communities around Austin pay for roads, water lines and drainage. Instead of the developer paying for it all up front, homeowners pay it back over time through an extra line on their property tax bill or a yearly assessment.

It’s not automatically bad. A community with a MUD might have newer infrastructure, great amenities and a lower price. But it can add a noticeable amount to your monthly payment, so it has to be part of the math. For example, Georgetown’s planned Yearwood community will have a MUD with a maximum rate of $0.65 per $100 of value, according to Community Impact. Read my Georgetown update for the details.

Before any of my buyers write an offer, I look up whether the address has a MUD or PID, what the rate is and whether it’s scheduled to drop. Sellers in Texas also have to disclose a MUD in writing. Have you seen a MUD on a listing and wondered what it meant?

My honest take on Austin property taxes

Here’s what I’d actually do. Before you fall in love with a house, get the full tax rate for that exact address and plug it into your payment. After you close, file your homestead exemption the same week you get the keys. And every spring, open that appraisal notice instead of tossing it in the junk drawer. (I see you.) Those three things save my clients real money every year.

FAQ

What is the property tax rate in Austin, Texas for 2026?

For a home inside Austin city limits, Travis County and Austin ISD, the combined rate is about $2.12 per $100 of taxable value before exemptions. The City of Austin’s 2026 rate is $0.579948 per $100.

How much are property taxes on a $500,000 house in Austin?

About $8,215 a year for a homestead inside Austin city limits, Travis County and Austin ISD, with standard homestead exemptions, according to Community Impact.

When are 2026 property taxes due in Austin?

2026 property tax bills are due February 1, 2027.

How much is the homestead exemption in Texas?

The school district homestead exemption is $140,000. Homeowners 65 or older or with a disability get an additional $60,000, for up to $200,000.

Do Austin suburbs have lower property taxes?

Not always. Many newer suburban communities have a MUD or PID that adds to the rate. Compare the total rate for each specific address.

Want help comparing homes by total monthly cost?

I’ll build you a side-by-side of homes you like with the full tax rate, HOA and MUD for each. Book a free 15-minute call or grab my free Austin Buyer Guide. Need a lender who explains it all? Here’s how to find the right lender.

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Sarah Maddali, REALTOR® | Serendipity Realty Group at Compass | 563.650.0452
Serendipity Realty Group is a real estate team affiliated with Compass. Equal Housing Opportunity.