Austin voters will soon decide whether to approve a significant property tax increase through a Tax Rate Election (TRE) scheduled for November 4, 2025. The City of Austin is seeking voter approval for a 16.9% increase in the property tax rate to support its proposed $6.3 billion city budget, which includes $415 million in new spending and more than 100 new city positions.
Under Texas state law, any property tax increase above 3.5% requires voter approval. If Proposition Q passes, the full 16.9% increase would take effect; if it fails, the city can still implement a 3.5% rise, which is the maximum allowed without voter consent.
For homeowners, the passage of Prop Q would mean an estimated annual property tax hike of about $302.64 per typical household—or roughly $25.22 more each month—according to figures from the City’s FY 2025–26 budget release. When including utilities, drainage, and other fees, the average ratepayer could see costs rise by $417.24 annually.
The TRE funds are intended for core services such as homelessness response, public safety, EMS expansion, parks maintenance, youth programs, and general upkeep of city services. Additional allocations under this proposal cover rapid rehousing efforts, shelter operations, wildfire risk management initiatives, and public health programs.
City analysis shows that every cent added above the voter-approval rate generates approximately $21.6 million in additional revenue for Austin’s municipal operations.
The backdrop for this decision includes economic challenges in Central Texas: regional indicators such as housing activity and sales tax revenues point to slower growth while businesses already face significant shares of local property taxes—affecting their operating costs and overall affordability for both employers and residents.
“Your property tax bill is a direct result of the budget and spending choices made by local elected officials,” states information provided by city officials.
Residents are encouraged to check their voter registration status through their county elections office or state portal and learn about early voting locations ahead of Election Day.
Several statewide ballot initiatives also appear on this year’s ballot—including proposals aimed at workforce development funding and small business tax cuts—which supporters say could benefit Central Texas communities and businesses.
Further details on Proposition Q can be found at official city resources:
– Learn more about Prop Q [here]
– Board of Director’s Statement [here]
– Business Coalition Joint Statement Letter [here]
– One pager explainer sheet [here]
– Advocacy work overview [here]
For context on historical trends: since 2004 there has been a 329% increase in Austin’s property tax revenues (with only one year-over-year decline recorded in 2005). Estimates suggest that every additional $1,000 in living costs could price out around 750 families from affording life in Austin.
