Politics
Waco Freezes Property Taxes for 2027, Keeping City Bills Unchanged
Waco property owners will pay the same city tax amount on their homes next year after the council locked in the no-new-revenue rate.
How we reported this
The City of Waco set its property tax rate at the no-new-revenue level for fiscal year 2027 during the July 7 council meeting, a step that keeps the city portion of tax bills unchanged for properties inside city limits.
Why the decision arrives now
Texas law requires cities to calculate and publish the no-new-revenue rate each year, which produces the same tax revenue as the prior year after accounting for new construction and value changes. Waco officials completed that calculation using appraisal data released by the McLennan County Appraisal District in June. The move comes as the city prepares its full operating budget, which covers police, fire, streets and parks services funded partly by property taxes.
Local households will see the effect on their January 2027 tax statements. A home valued at the city median will generate the identical city tax levy as this year, before any county or school district portions are added.
How the rate change reaches daily costs
Residents who pay property taxes through mortgage escrow accounts will notice no adjustment in those monthly payments tied to the city rate. Renters may see indirect effects if landlords pass along stable rather than rising tax costs in lease renewals. The budget also allocates funds for street maintenance and public safety overtime drawn from the same revenue total, so service levels remain funded at prior amounts.
City budget documents show property taxes supply roughly one-quarter of general fund revenue. With the rate held flat, that share stays constant even as overall spending rises with inflation on fuel, supplies and wages.
The rate takes effect October 1. Tax bills mailed in late 2026 will reflect the unchanged city levy, and the first payments under the new rate are due by January 31, 2027.