Austin Proposition Q 2025: Property Tax Vote Explained

by Realty Haus

Austin voters will decide this November whether to approve Proposition Q, a 2025 property tax rate increase that could reshape city funding for homelessness services, parks, libraries, and public safety.

Whether you’re a homeowner concerned about costs or a resident watching city priorities, here’s a complete breakdown of what Prop Q means, how much it could cost, and where the money would go.

🗳️ Key Takeaways

Prop Q asks Austin voters to approve a property tax rate that exceeds the voter-approval threshold under Texas law.
The Austin City Council voted 10–1 in August 2025 to adopt a budget requiring the increase, triggering a mandatory election.
If Prop Q passes, the average Austin homeowner would pay about $302 more annually in city property taxes.
If Prop Q fails, the city projects it would need to cut $109.5 million from its adopted budget.

What Is Proposition Q in Austin?

Proposition Q is a ballot measure asking voters to approve the City of Austin’s adopted property tax rate for fiscal year 2025–26. The rate is high enough to trigger a voter-approval election under Texas’s Truth-in-Taxation laws.

In August 2025, the Austin City Council voted 10–1 to adopt this rate. Now, voters must decide whether to uphold that decision.

How Much Would Proposition Q Raise My Austin Property Taxes?

Estimated Cost to Homeowners

If Prop Q passes: The average Austin homeowner would pay $302.14 more per year in city property taxes.
If Prop Q fails: Taxes would still rise by about $104.76, due to rising property values.

That means the real difference on the ballot is roughly $200 per year for the average homeowner.

This is about a 20% increase in the City of Austin’s portion of your property tax bill—not your total tax bill. Your full bill also includes school district, county, and hospital district taxes.

Example: Median Austin Home

For a median-valued home of $494,803, Prop Q would increase the city portion of property taxes by about $302 annually, or roughly $25 a month.

What Would Proposition Q Fund?

According to the City of Austin Budget Office, the $109.5 million in additional revenue would support these priorities:

🏘️ Homeless Services (≈$22 million)

$12M for rapid rehousing
$8M for emergency shelter operations and housing navigation
$2M for street outreach

🚒 Public Safety and Emergency Services

New EMS positions to reduce response times
$8M to restore Fire Department overtime funding
Additional resources for police and emergency medical services

🏥 Public Health

$1.6M in one-time funding to stabilize local public health programs

🌳 Parks, Libraries, and Quality of Life

Funding for park maintenance, library operations, and pool facilities

What Happens If Austin Voters Reject Prop Q?

If Proposition Q fails, the city’s property tax rate would revert to 52.4017¢ per $100 of property value (the voter-approval rate). That would reduce expected revenue by $109.5 million, forcing Austin to rebalance its budget.

Austin’s City Charter requires a balanced budget, so any lost revenue would have to be offset by spending cuts.

Possible Cuts Discussed by City Council

In August budget sessions, the Council considered options such as:

Proportional cuts across all city departments
Reverting to a base budget proposed earlier by the City Manager
Targeted reductions to specific programs

City staff have said that “significant cuts would be necessary” if Prop Q fails.

Services Potentially Impacted

Homeless shelter operations
EMS and Fire Department staffing
Park and library hours
Public health programs

Who Supports Proposition Q?

Austin City Council Majority

The City Council voted 10–1 to adopt the rate.
Council Member Ryan Alter said:

“With this budget we get to put Austin’s values on the ballot... vital programs like homelessness, parks, and affordable housing.”
— Austin City Council Meeting, August 14, 2025

“Love Austin” Campaign

Led by Joe Cascino, this coalition argues the measure protects Austin’s quality of life by maintaining funding for essential services.

“Care Not Cuts” Coalition

Supported by groups including Austin EMS Association, VOCAL Texas, and Austin Area Urban League, emphasizing:

Public safety staffing
Homelessness prevention
Community health investments

Who Opposes Proposition Q?

Council Member Marc Duchen

The only “no” vote, citing affordability concerns for middle-income families.

Fiscal Concerns

Opponents argue:

Property values have already risen sharply
The city portion of taxes would increase about 20%
Inflation adds pressure to household budgets

Legal Challenge

Carmen Llanes Pulido filed a lawsuit in September 2025 over ballot language. The Texas Supreme Court let the election proceed, noting that voters—not courts—should decide.

Austin Property Tax Context

Median home value (2025): $494,803
Rising assessments: 20–40% increases in recent years
Homestead exemption: Caps taxable value growth for school taxes, not city taxes

Austin’s overall property tax burden is among the highest in Texas, though comparable to Houston and San Antonio when all jurisdictions are included.

How to Vote on Proposition Q

Ballot Language

Prop Q asks whether voters approve the city’s adopted tax rate for FY 2025–26.

Voting Options

Vote FOR: Approve the tax rate; maintain funding for homelessness, public safety, parks, and libraries.
Vote AGAINST: Reject the rate; require $109.5 million in budget cuts.

Early Voting

Early voting begins before Election Day in November 2025. Visit Travis County Elections for polling locations and hours.

What Real Estate Experts Say

Local real estate professionals note that Prop Q could have mixed impacts on home values:

If it passes:

Slightly higher tax burden
Better city services that help sustain property values

If it fails:

Lower taxes but possible service reductions that could impact livability

The Bigger Picture

Austin’s budget challenges stem from:

Rapid growth and service demand
State funding limits on cities
Rising operating costs for public services

Without Prop Q’s additional funding, city officials warn that maintaining current service levels will be difficult.

Frequently Asked Questions

Is this a 20% total tax increase?
No. It’s about a 20% increase in the city’s portion of your tax bill, not the total.

Why is this election required?
Texas law requires voter approval when tax rates exceed the voter-approval threshold.

Will renters be affected?
Possibly. Landlords may pass costs along through rent adjustments.

When would the increase appear?
If approved, higher rates would appear on October 2026 property tax bills.

Bottom Line: What Austin’s Prop Q Means

Vote YES:

Pay about $302 more annually
Maintain funding for public safety, homelessness, and parks

Vote NO:

Avoid the higher rate
Force $109.5 million in city budget cuts

Your November 2025 ballot will decide how Austin balances growth, affordability, and essential services.

How RealtyHaus Can Help

Property taxes affect homeownership, affordability, and investment returns.
At RealtyHaus, we help you:

Understand how tax changes impact buying power
Compare neighborhood tax rates
Plan pricing and investment strategies

Whether Prop Q passes or not, we’ll keep you informed about Austin’s real estate and tax landscape.

About This Analysis

This article is for educational purposes.
RealtyHaus does not endorse or oppose Proposition Q.
Information verified through:

City of Austin Budget Office
Austin City Council Meeting Minutes (August 14, 2025)
KUT, FOX 7 Austin, and ATX Today
Texas Supreme Court filings
Travis Central Appraisal District