Leander City Council voted to maintain the city’s property tax rate after passing a $453 million budget Sept. 17.
Under the approved budget, the average homeowner's property tax bill will fall by roughly $102 as the city keeps its tax rate of $0.417282 per $100 of property valuation. The average homeowner will pay around $2,092 based on the area’s median home valuation of $501,383, according to city documents.
The budget for fiscal year 2026-27 increased city spending by about 2.6%.
"This budget also ensures a long-term structural balance while establishing a transparent framework to support Leander's ongoing growth," Otis Williams, chief financial officer for Leander, said.
By the numbers
While average home values have fallen, the addition of new properties—both homes and businesses—has led to increased revenues for the city. Leander's property tax base grew by over $636.8 million, with $552.7 million of that growth coming from new development, city documents state.
Although the city’s overall tax rate will remain flat at $0.417282 per $100 of property valuation, the distribution of this tax rate changed slightly. The maintenance and operations tax—which pays for routine expenses like payroll for city staff and public parks—increased by less than a percent to $0.274483 per $100 valuation for FY 2026-27.
Meanwhile, the city’s debt service rate fell by less than a percent from last year’s rate to $0.142799 per $100 valuation.
While property taxes make up one portion of funding for the city, increasing sales tax revenues have helped support the city’s growth. Sales tax revenue for the upcoming fiscal year is expected to pull in $13.8 million, a 6.8% increase from the previous year.
By the numbers
The city's largest expenditures will go toward general capital projects and utility capital projects, which fund infrastructure improvements like roads, water lines and traffic lights. While funding for capital projects fell by 19.1%, or $33 million, spending on utility capital projects increased by 30.7%, or $24.9 million.
“This budget puts us in a good place to continue to improve our city, make sure that we have essential services and provide quality services to our citizens,” council member Stephen Chang said.
The city's general fund increased by about $3 million, which reflects increased spending on city services like parks, police and fire. Through the general fund, the city employs 456 full-time employees, including the addition of 21 new full-time roles.
Additionally, the city has applied for grant funding to hire four additional police officers and 15 new firefighters. If awarded these grants, the city will support 25% of the funding for the new roles, which has already been allocated under the general fund.
Looking ahead
The city of Leander will hold a second reading of the tax rate Sept. 22.
Although municipal tax rates will remain flat, Leander ISD is seeking to increase property tax rates for the school district by 3 cents to $1.1169 per $100 valuation. The proposed tax rate increase for the school district will appear on the Nov. 3 ballot.
Meanwhile, Williamson County property owners may see a slight decrease in their county taxes owed, as county officials approved a no-new-revenue tax rate Sept. 1.
Travis County homeowners are expected to see a very slight increase in their property taxes as compared to last year; however, the budget and tax rate have not yet been adopted.
