Austin's City Tax

Cities across the country tax their residents in order to provide a variety of services. The taxes are used to pay for infrastructure improvements and maintenance, public transportation, police and fire department services, and a variety of other necessary items.

While maybe not be terribly popular, the taxes levied by city councils do pay for a wide variety of services that people typically use and appreciate. For example, the majority of public parks and recreation areas are maintained by a tax levied by the city.

Rather than a sales tax, Austin has opted to impose a property tax on its residents' homes in order to pay for city services. The taxable value of any home is based on the value placed on the home by the Travis County Central Appraisal District.

The tax on property is broken into two categories. The first, known as the debt service fund, pays for things that the city has financed through the sale of bonds and other debts. Thus, this portion of the tax funds the construction of police stations, the purchase of fire trucks, and a variety of other things that required the city to go into debt. It is the smaller portion of the property tax.

The second portion of the tax pays into the general operating fund. This fund receives roughly 75% of all of the property taxes collected by the city. It pays for a variety of city services, including the salaries of police officers and fire fighters.

The tax rate is decided on an annual basis when the City Council sits down to create its budget for the next fiscal year.

Contact Us

To learn more about the taxes in Austin on property and other items, contact the Austin real estate agents of the Carvajal Group at 512-419-7770.