Austin Real Estate Taxes: What Actually Moves the Needle

Austin funds its infrastructure, schools, and a big chunk of what keeps this city running through property taxes. For most of Austin, the combined tax rate hovers around 2.1 percent, give or take depending on where you live. But here’s the part most people misunderstand. The tax rate itself is not always the most important number.

Yes, tax rates can change. They shift based on elections, bonds, school funding, and what the city and county need to finance. But the biggest driver of your tax bill is not the rate. It is the assessed value of your home.

The county determines what they believe your property is worth based on their own valuation criteria. Texas is technically a non-disclosure state, which means the state does not automatically have access to actual sales prices. Historically, this worked in homeowners’ favor. For years, many homes were worth far more on the open market than what the county had them assessed at. It was not uncommon to see a property’s true market value be $100,000 higher than its taxable value.