Austin voters will decide on a Tax Rate Election (TRE) on November 4, 2025. The City of Austin is seeking approval for a property tax increase of 16.9 percent to support its $6.3 billion city budget, which includes $415 million in new spending and over 100 new city positions.
Under Texas law, any property tax increase above 3.5 percent requires voter approval. If Proposition Q passes, the full 16.9 percent increase will take effect; if it fails, taxes will still rise by the maximum allowed without voter approval—3.5 percent.
According to the City of Austin’s analysis (CBQ #75), each penny added above the voter-approval rate generates about $21,617,590 in additional property tax revenue for the city.
The proposed increase would mean that a typical homeowner could see an annual property tax bill rise by about $302.64, or roughly $25.22 per month. When including other costs such as utilities and fees, the average Austin ratepayer’s total annual increase is estimated at $417.24.
Since 2004, property tax revenues in Austin have increased by 329 percent; the last decline was recorded in 2005.
The revenue from this TRE is intended to fund core city services such as homelessness response, public safety, EMS, parks maintenance and youth programs. Additional funding under the proposal would go toward rapid rehousing efforts, shelter operations, new EMS positions, wildfire risk management and public health initiatives.
Austin businesses pay a significant share of local property taxes and may face higher operating costs if the measure passes. The press release notes that affordability challenges could impact workforce stability and business growth at a time when regional economic indicators suggest a slowdown in housing demand, office space leasing and sales tax revenues.
“Your property tax bill is a direct result of the budget and spending choices made by local elected officials,” according to information provided by city officials.
Estimates suggest that every $1,000 increase in costs could price out approximately 750 families from living in Austin.
Voters are encouraged to check their registration status through official county election offices or state portals ahead of early voting or Election Day polling dates across Bastrop County, Caldwell County, Hays County, Travis County and Williamson County.
Additional resources are available through links provided by the Board of Directors’ statement on Proposition Q and advocacy materials related to Opportunity Austin’s work.
