Waco City Council Approves Property Tax Assessment Adjustments for Residential Households

The Waco City Council passed Ordinance 2026-15 on July 8, directing the city finance department to apply revised assessment caps to residential properties when preparing the 2027 tax rolls.

City budget documents released last month showed that property tax collections fund 62 percent of general government operations, including police, fire and parks maintenance. The adjustments respond to updated data from the McLennan County Appraisal District on home values recorded through June 2026.

Impact on Monthly Household Costs

Residents in zip codes 76704 and 76706 will receive notices this month explaining whether their property falls under the new calculation method. The change limits the taxable value increase applied to qualifying single-family homes when determining the amount due to the city each year.

City records list 48,200 residential parcels inside Waco limits. Households that receive the adjusted assessment will see the city portion of their tax bill calculated from the capped value rather than the full appraised amount for the coming cycle.

Local advocates note that property taxes appear on annual statements mailed by the McLennan County Tax Assessor-Collector, separate from monthly mortgage escrow payments. The ordinance does not alter school district or county tax rates, which remain set by those separate entities.

Implementation Timeline

City staff will apply the new rules when the 2027 tax statements are prepared in September. Property owners can review their individual assessment through the McLennan County Appraisal District online portal before the October due date.

The legislation states that the adjustments apply only to the city tax levy and will be reviewed again during the next budget cycle beginning in spring 2027.