Houston City Council Freezes Property Tax Rate at 0.5192 for 2027

Houston City Council on July 6 approved the fiscal year 2027 budget that keeps the property tax rate unchanged at 0.5192 cents per $100 of appraised value. The decision covers all taxable residential and commercial properties inside city limits and takes effect with bills mailed in January 2027.

Property taxes remain the largest single line item in most Houston household budgets. Council members reviewed revenue projections showing that holding the rate steady would produce $1.48 billion in general-fund revenue while avoiding an automatic increase tied to rising appraisals.

Effect on monthly household cash flow

A homeowner whose property is appraised at $350,000 will continue to pay the same $1,817 in city taxes next year. Residents in neighborhoods such as Sharpstown, Sunnyside and the East End will see no change in that portion of their monthly expenses, freeing the same dollars for groceries, utilities or car insurance.

The budget also allocates $12 million to expand the existing senior and disabled homestead exemption by an additional $20,000 of appraised value. City records show 87,400 households already receive the exemption; the increase is projected to reduce their city tax by an average of $104 per year.

Local advocates note that the freeze on the rate coincides with continued pressure on other costs tracked by the Bureau of Labor Statistics Houston metro index, including a 4.1 percent rise in food-at-home prices over the past twelve months.

Next steps for implementation

The Harris County Tax Assessor-Collector will apply the new rate when preparing 2027 statements. Property owners may file for the expanded exemption through the county appraisal district beginning October 1. Council is scheduled to review mid-year revenue collections in January 2027 before considering any adjustments.