Officials in Harris County, Texas, home to over 5 million people and Houston, have approved a record property tax rate to address a budget deficit exceeding $180 million. The decision, which raises affordability concerns for homeowners, was passed with a 3-2 vote by county commissioners. Harris County is the third-largest in the United States, following Los Angeles County and Cook County, Illinois.

Understanding the Property Tax Rate Increase

The proposed increase of 7.6 percent would mean a change from 62 cents to 67 cents for every $100 in taxable property value. This hike aims to address a fiscal shortfall chiefly resulting from law enforcement salary increases, healthcare costs, and fees for court-appointed lawyers representing low-income defendants.

Similar challenges are faced by local governments nationwide, with rising public safety, healthcare costs, and mandates that outpace revenue growth. This issue is particularly pressing for Harris County, one of America’s largest local governments.

Dr. Esmaeil Porsa, President and CEO of Harris Health, noted that the increase would support continued expansion and upgrades in infrastructure and technology.

History of Budget Deficits

For Harris County residents, budget shortfalls are not unfamiliar, with consecutive deficits reported for four years since 2023. However, the property tax hike presents a new challenge for them, requiring a high cost to balance the county’s budget.

Details of the Vote

If approved, the tax hike would add approximately $198 per year to the amount the average homeowner currently pays. According to the Harris County Office of Management and Budget, this measure would generate an estimated $15 million surplus.

The vote struck down an amendment by Commissioner Tom Ramsey, a Republican, to maintain the current rate. County Judge Lina Hidalgo joined him in supporting an unchanged rate. Hidalgo emphasized fiscal responsibility, noting her support for programs only with available funding. Despite initially supporting a smaller rate increase, Commissioner Adrian Garcia eventually voted for the 67-cent rate.

Newsweek reached out to several county officials for comments following the vote.

Property Tax Context in Texas

The decision in Harris County comes amidst broader efforts by Texas legislators to restrain property taxes. Governor Greg Abbott and other state leaders highlight the challenge of rising tax bills in a state with no personal income tax.

Texas has previously enacted multi-billion-dollar tax relief measures to reduce school district taxes and increase homestead exemptions, helping residents keep their homes amid rapid growth.

Despite these state-level actions, local governments like Harris County continue to face financial pressures, struggling to close budget gaps without raising property taxes.

Impact on Homeowners

For Harris County homeowners, the proposed tax increase adds to homeownership costs. The Houston area has seen rising home prices, higher insurance costs, and increasing tax bills.

Redfin data shows that the median sale price of a home in Houston rose from $250,000 in 2019 to $359,720 in July. Similarly, Harris County’s median home price increased from $286,000 to $327,041 over five years.

Between 2015 and now, the Texas property tax burden increased by $40.7 billion, according to Texans for Fiscal Responsibility. At the same time, homeowners insurance premiums rose 30 percent between 2019 and 2024 and have continued growing, reaching an average cost of $4,644 annually for standard coverage.

Next Steps

The proposed rate increase isn’t final. A public hearing is scheduled for September 17 at 9 a.m. Commissioners may still approve a lower rate before the budget finalization deadline on October 1. If approved, the hike would mark one of the largest in Harris County’s history.

Contact for more information: Newsweek editor Edward Pearcey.