Austin Tax Rate Election
Austin City Council has called a special Tax Rate Election (TRE) for November 2025. This critical vote will determine whether property taxes increase by 5¢ per $100 valuation, generating an additional $110M in revenue. Get the facts to make an informed decision.
📢 Total Tax Burden Update
It's not just the City! Travis County increased property taxes from $0.344445 to $0.372 (8% increase, $0.0275556). Central Health went from $0.107969 to $0.118023 (about 1 cent). Last year saw massive increases: AISD ($0.091) and Travis County "day care" TRE ($0.025). The City's new rate would be $0.574017 — an increase of $0.096417 over last year's $0.4776. That's $96.42 per $100k valuation or $482 on a $500k home.
🏛️ Understanding Tax Rate Elections - What is it?
What You Need to Know
- ✓ A Tax Rate Election (TRE) asks voters to approve a property tax rate above the state's voter-approval cap
- ✓ If approved: The higher rate applies immediately and becomes the new baseline for future years
- ✓ If rejected: The rate defaults to the voter-approval rate, requiring budget adjustments
- ℹ️ This affects only the city portion of your property tax (separate from county, school, and special districts)
📢 Latest Updates
The Real Tax Impact: Almost $0.10 per $100
One thing we should highlight is that the City has baked in the 3.5% increase. That basically adds a penny or two to the 5 cents the TRE raises.
Last Year's Tax Rate
2025 with Successful TRE
Unless your valuation went down, the increase is just shy of $0.10 or $500 on a $500,000 home.
Real Impact Examples:
- $300k home: ~$300 annual increase
- $500k home: ~$500 annual increase
- $750k home: ~$750 annual increase
Stay Informed
We'll continue to update this section with the latest developments about Prop Q and the Tax Rate Election. Check back regularly for new information.
Have questions or want to share information? Contact us at austintaxrateelection@gmail.com
📊 Budget Facts
⚠️ The "Shortfall" Myth
The alleged budget "shortfall" justifying the TRE could be resolved by just 0.5% of the $6.3 billion budget. This year's budget increased by $400 million from last year's $5.9B — that's 14 times the "deficit". Meanwhile, population growth has stalled and inflation is under 3%. The TRE creates an undefined slush fund for pet projects and friends of City Hall, not essential services.
Budget Growth vs. Population
City budget exploded from $3.5B (2015) to $6.3B (2025) while population grew only ~10%. This is crazy!
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Per-Resident Spending Surge
Spending per resident jumped from $3,800 (2015) to $6,300 (2025).
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Our Debt is Growing
General debt service nearly doubled from $149M to $288M yearly.
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Administrative Hiring is Out of Control
"Internal Services & Transfers" - the people working in the offices of the various city departments - primarily burecrats - exceeds $500M annually — more than Parks, Libraries, and Public Health combined.
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Budget Priority Comparison
Administrative costs now dwarf direct citizen services. We are paying salaries for people to coordinate, not actually provide direct city services, like Police, Fire, and Sanitation.
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Austin Energy Inefficiency
Not only is the budget out of control, Austin Energy's budget increased 67% while electricity delivered grew only 30%.
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🚇 Project Connect: A Financial Disaster
Project Connect (ProCON) is collapsing under its own weight:
- 💸 Cost ballooned from $5.1B to over $7B in just one year
- ⚠️ FTA federal funding is unlikely and faces legal challenges
- 🚫 $200M/year operating costs remain completely unfunded
- 💰 Austin already transfers over $180M/year to this boondoggle
Austin does not have the financial capacity to fund Project Connect. It's only a matter of time before it collapses, yet the City wants more tax money.
⚖️ Prop Q: Vote No
✓ Love Austin Campaign (Yes)
What does this even mean? That we don't have to be responsible for our city budget because we dislike Abbot/Trump policies? This is a child's argument.
While police staffing and response times lag despite record spending.
False canard — there's plenty of money and a duty to fund parks, emergency services, and homeless programs. The City just prioritizes bureaucracy over services.
Meaning no pressure to address inefficiencies or bloated departments.
✗ Vote No on Prop Q
NGOs receiving $650M+ for homelessness with minimal results or oversight.
Police and core services should come before bureaucratic expansion.
Council ignores deteriorating quality of life while raising taxes.
Spending growing 8x faster than population with little improvement.
Administrative costs crowding out frontline services.
Higher taxes push residents toward financial crisis.
🎭 Myth vs. Fact: Prop Q
"Trump slashed Austin's federal funding."
Federal money is set by Congress and formulas, not targeted at one city. If Austin lost a grant, it's on City Hall, not D.C.
"Abbott forced City Hall to raise taxes."
State law just says: if the city wants more than the cap, it must ask voters. That's protection, not a mandate to hike.
"Prop Q fixes a budget shortfall."
They never define the shortfall. Austin is pulling in record revenues — the issue is spending priorities, not missing money.
"Prop Q restores Trump's cuts."
There's no such thing as city-specific "Trump cuts." It's a slogan to cover bad budgeting.
"Prop Q guarantees funds for homelessness, safety, parks, and libraries."
The ballot language has no lockbox, no metrics, and no audits. Without accountability, it's just another blank check.
"Austin takes care of its own."
Exactly — and that means living within record revenues, funding essentials first, and demanding results, not excuses.
💰 How This Affects You
🏠 Homeowners
City tax rate × taxable value = your bill. The TRE alone means $96.42 per $100k valuation. For a $500k home, that's $482/year more just from the City. Add Travis County and Central Health increases, and you're looking at much more.
🏢 Renters
Property taxes are landlords' major expense. Rate increases typically pass through to rent over time.
🏪 Small Businesses
Commercial properties lack homestead protection. Rate changes directly impact operating costs.
🗳️ How to Vote
📚 Sources & Methodology
- Primary sources: City of Austin Approved Budget Books and CAFRs, FY2015–FY2026
- Austin Energy financial and operating reports
- Figures rounded for clarity; departments reorganized for consistency
- All data from publicly available documents