Texas Governor Greg Abbott is pushing back against a proposed property tax hike in Austin, calling on state lawmakers to stop what he sees as excessive local spending and taxation. The plan, approved by the Austin City Council, could raise the maximum property tax rate by 25% in the next fiscal year — but only if voters agree in November.
The vote
The Austin City Council recently voted unanimously to set the city’s maximum property tax rate at 60 cents per $100 of property value, up from the current 47.76 cents. The vote means the city can now ask voters to approve the higher rate in the upcoming election. The proposed increase is part of a broader effort to manage rising costs, but it didn’t sit well with the state’s top official.
Abbott’s response
Governor Abbott responded to the council’s decision by sharing an article from The Austin American-Statesman urging lawmakers to take action. “Hey #txlege [Texas Legislature]—This. Right here. … We must stop them from raising property taxes [and] stop spending increases.”
Tax cut
While Austin is preparing to ask voters for a tax hike, Governor Abbott is backing a plan to cut property taxes across Texas. Earlier this year, he signed two bills that will go to voters in November. If approved, they would increase the homestead exemption from $100,000 to $140,000 for all homeowners — and up to $200,000 for seniors and people with disabilities.
The upcoming election
Along with approving its $6.3 billion budget for 2025–26, the Austin City Council also voted to pursue a tax rate election. If voters approve the measure, it would raise the city’s property tax rate by 5 cents, bringing it to the full 60 cents per $100 of property value. That would amount to about $25.22 more per month for the average Austin homeowner compared to the previous year. City leaders say the added revenue is needed to cover a $33.4 million structural deficit and to maintain essential services like public safety, health, infrastructure and housing support.
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Author: Isabella Torregiani
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