Austin voters are set to decide on a Tax Rate Election (TRE) on November 4, 2025. The proposal asks residents to approve a property tax rate increase of 16.9%, which is above the state-mandated cap of 3.5% that requires voter approval.
The City of Austin’s proposed budget for the next fiscal year totals $6.3 billion, including $415 million in new spending and over 100 new city positions. According to city data, property tax revenues have increased by 329% since 2004, with the last decline occurring in 2005.
The impact on homeowners would be significant if the TRE passes. A typical homeowner could see their annual city property tax bill rise by about $302.64, or $25.22 per month. When accounting for additional charges such as utilities and fees, the average Austin resident would pay an estimated $417.24 more per year.
Businesses in Austin also stand to be affected by these changes due to their substantial share of property taxes paid in the region. Increased operating costs may influence business growth and workforce stability, particularly as economic indicators show signs of slowing housing demand and sales tax revenue.
If Proposition Q is approved by voters, property tax revenues will increase by the full proposed amount of 16.9%. If it fails, state law still allows for a maximum increase of 3.5% without further voter input.
Revenue from the TRE would fund core city services such as homelessness response, public safety initiatives including EMS and parks, youth programs, and general maintenance efforts. Additional allocations include rapid rehousing programs, shelter operations, wildfire risk management measures, new EMS positions, parks upkeep, and public health resources.
According to an analysis from the City of Austin (CBQ #75), “each penny added above the voter-approval rate yields ~$21,617,590 in additional property tax revenue for the City.”
City officials advise residents to check their registration status through county elections offices or state portals ahead of voting day and encourage community members to learn about polling locations via official election websites in Bastrop County, Caldwell County, Hays County, Travis County, and Williamson County.
“Make sure your voice is heard this November,” urges city communications material directed at all stakeholders impacted by these potential changes.
