McLennan County raises property tax rate 11.9% for 2026 budget

McLennan County commissioners approved a 2026 property tax rate increase to fund the county’s fiscal year 2027 budget, lifting the county rate to $0.3748 per $100 of taxable value. The higher rate is expected to generate about $12.9 million more in property tax revenue and raise the county portion of the typical homestead bill.

Why it matters: - McLennan County property owners will pay more in county taxes after commissioners approved an 11.9% increase in the county’s tax rate. - The change adds pressure to household budgets at a time when property taxes and inflation are already straining homeowners. - The county portion is only one part of a total property tax bill, but it still affects what homeowners owe each year.

What happened: - McLennan County commissioners voted Tuesday, Aug. 25, to adopt a property tax rate of $0.3748 per $100 of taxable value for 2026. - The rate is up from $0.334805 in 2025. - Commissioners approved the increase while adopting the county’s fiscal year 2027 budget. - The new rate is about 11.9% higher than the prior year.

The details: - County records show the new budget is expected to generate about $12.9 million more in property tax revenue than the previous year. - That would be an increase of about 13.7%. - Taxable property values in McLennan County total about $29.5 billion for fiscal year 2027, up from about $29.3 billion in the current fiscal year. - The county’s projected total revenue for the coming fiscal year is about $159.4 million, compared with about $147 million in the current year. - Projected expenditures are about $164.9 million, up from about $161.5 million. - Commissioners also reduced planned expenditures by about $2.8 million during the budget process. - The tax rate applies only to the McLennan County portion of a property owner’s tax bill. - Cities, school districts and McLennan Community College set their own property tax rates. - A homeowner with a homestead exemption and the county’s median taxable value of $271,968 would pay about $1,019 in county property taxes under the new rate. - That is about $123 more than under the previous rate. - The amount any property owner pays will vary based on taxable value and any exemptions that apply.

Between the lines: - The budget math shows higher revenue is doing most of the work, even as commissioners trimmed spending. - The county is still projecting spending above revenue, which suggests continued budget pressure despite the tax increase. - Patrick O’Connor, president of O’Connor, called the increase “regrettable” and said governments should look for lower-cost ways to meet needs before raising taxes.

What's next: - Property owners will see the higher county rate reflected in future tax bills tied to the 2026 tax year. - Final tax bills will still depend on local taxable values and any exemptions applied by individual owners. - Homeowners who want to challenge their assessments can pursue property tax appeals through consulting firms such as O’Connor.

The bottom line: - McLennan County raised its tax rate to help balance its budget, and the typical homeowner will pay more as a result.