Property Taxes in Austin
As the base Austin record already flags, property taxes are the direct tradeoff for Texas having no state income tax, and Travis County runs well above the national average -- a blended effective rate cited around 1.65% for a typical Austin-area homeowner, against a roughly 0.9%-1.1% U.S. average. Two mechanics matter most for anyone moving here: the recently expanded homestead exemption, and Texas's 10% annual appraisal cap, which works differently than the caps used in some other high-property-tax states.
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Learn moreRates: County-Level vs. Blended Estimate
Per the base Austin record, Travis County's own county-level rate runs around 1.54% effective, but that is only one of several taxing entities layered onto a given property -- city of Austin (or another municipality), the local school district, Austin Community College, Central Health, and other special districts each add their own rate. Blended estimates for a typical Austin-area homeowner run 1.65%-2.4% depending on the exact combination of overlapping jurisdictions; 1.65% is used as a representative figure, not a precise citywide constant. Confirm your specific parcel's current combined rate against the Travis County Tax Office or your county appraisal district before budgeting precisely.
Homestead Exemption: Recently Raised
Texas's standard homestead exemption for school-district property taxes was $100,000 following a 2023 constitutional amendment, and a statewide ballot measure passed in the November 2025 election (commonly referenced as Prop 13) raised that school-district homestead exemption to $140,000, effective starting the 2026 tax year. This is a statewide change, not Austin-specific, but it applies fully here and will meaningfully reduce many Austin-area homesteaded owners' effective tax bills relative to the prior $100,000 exemption level -- worth factoring in if comparing against older cost estimates that still assume $100,000.
Texas's 10% Homestead Appraisal Cap (Not the Same as Florida's Save Our Homes)
For a homesteaded property, Texas Tax Code Section 23.23 caps the annual increase in a home's appraised value (for tax purposes) at 10% of the prior year's appraised value, plus the value of any new improvements -- regardless of how much the home's actual market value rises in a given year. This is a genuinely different mechanic than Florida's 3%-or-CPI Save Our Homes cap used in that state's high-property-tax metros: Texas's cap is a flat 10% ceiling, not a lower percentage-or-inflation formula, and it takes effect starting the January 1 following the year a homestead exemption first qualifies. Over a period of rapid appreciation like Austin's 2020-2022 run, this cap can still create a meaningful, growing gap between a longtime owner's capped assessed value and the home's true market value -- though a smaller gap than Florida's tighter 3% cap tends to produce over the same period.
Over-65 and Disabled Homeowner Exemptions
Homeowners age 65 or older, or those with a qualifying disability, are eligible for an additional exemption on top of the standard homestead exemption, and their school-district property taxes are frozen at the amount owed in the year they first qualify (a 'tax ceiling'), regardless of subsequent appraisal increases -- a genuinely valuable protection for anyone retiring in place in Austin. See the retiring topic page for more on how this factors into a retirement-specific relocation decision.
New Buyers Start at Full Market Value
Unlike a longtime homesteaded owner protected by the 10% cap, a new buyer's home is reappraised at full current market value in the year of purchase -- the prior owner's capped assessed value does not transfer to a new owner the way it might under a portability-style benefit in some other states. Budget your first-year property tax bill off the home's actual purchase price and current market conditions, not off whatever the prior owner was paying.
Key takeaways
- Travis County's county-only effective rate runs around 1.54%; a typical blended rate across all overlapping taxing entities runs 1.65%-2.4% depending on source and jurisdiction -- confirm your specific parcel with the county.
- The school-district homestead exemption was raised from $100,000 to $140,000 starting the 2026 tax year, per a November 2025 statewide ballot measure -- a real, recent reduction in many homesteaded owners' effective bills.
- Texas caps annual appraised-value growth for homesteaded properties at 10% per year (Tax Code Sec. 23.23) -- a different, less restrictive mechanic than Florida's 3%-or-CPI Save Our Homes cap, though it still creates a real gap during rapid-appreciation periods like Austin's 2020-2022 run.
- Homeowners 65+ or disabled get an additional exemption and a school-tax "ceiling" that freezes that portion of their bill going forward -- a genuine benefit for anyone retiring in place.
- New buyers are reappraised at full market value in their purchase year -- a prior owner's capped assessed value does not transfer to you.
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