Leander property owners are expected to see the city maintain its current property tax rate for the upcoming fiscal year, despite the City Council approving a higher rate ceiling.
City officials said the proposed tax rate for fiscal year 2026-27 will remain at $0.417282 per $100 of property valuation, according to an Aug. 28 news release.
While the City Council approved a maximum tax rate of $0.467986 per $100 valuation Aug. 20, city leaders said the budget is being built around the current rate. A public hearing on the proposed tax rate and budget is scheduled for Sept. 17.
By the numbers
By maintaining the previous year’s property tax rate, a Leander resident would pay around $1,760 in property taxes to the city, using the 2025 appraised value for the median home in Williamson County of $422,218.
Since property values have increased, city officials are looking to maintain the current combined property tax rate. Of the $4.9 million of additional property tax revenue this rate will bring, about $2.4 million comes from new properties added to the tax roll, according to the news release.
Most of the tax rate is made up of the maintenance and operations tax rate, which funds daily operations for services like the library, payroll for city employees and public parks programming. Released documents from the city of Leander indicate leaders are considering slightly increasing the city’s M&O rate by less than a percent to $0.274483 per $100 valuation for the FY 2026-27 budget.
Meanwhile, the city’s debt service rate—which raises revenue to pay off the city’s debt—may fall by less than a percent from last year’s rate to $0.142799 per $100 valuation.
While a tax rate hasn’t been passed yet, city documents state that the approved ceiling of $0.467986 per $100 valuation provides “flexibility” for city leaders. This rate is the highest the city can set without needing voter approval.
“Staff is not going to be presenting to council a budget that is going to exceed [$0.417282 per $100 valuation],” City Manager Todd Parton said. “It’s really for council to be able to have a little bit of additional latitude if there’s something that you need to add to the budget.”
Looking ahead
During the Sept. 17 budget workshop, city staff will present details on the proposed budget and tax rate.
