Highland Village's Proposed Tax Rate Would Add About $0.028 per $100 to Your Property Bill

If you own property in Highland Village, the number that matters right now is $0.528541.

That's the proposed tax rate per $100 of assessed value for FY 2026-27 — the voter-approved rate the City Council formally set this summer. The current rate is $0.500984, making the difference roughly $0.028 per $100, which the city rounds to "approximately a three-cent increase" in its own materials.

The math is straightforward. Multiply your home's taxable value by 0.028, then divide by 100. On a $400,000 home, that's around $112 more per year from the city's slice of your bill. On a $600,000 home, closer to $168. Your actual increase depends on your appraised value.

As for why the rate is going up — the city describes FY 2026-27 as an important transition for a mature, largely built-out community. Operational costs have climbed alongside inflation, revenue growth has flattened, and state-imposed caps on what cities can collect aren't going away anytime soon. Property tax revenues are projected to rise slightly, offsetting a decline in sales tax and interest income and producing a 2.1% increase in total revenue over last year. The commercial sales tax cushion that funded Highland Village's growth years simply isn't expanding the way it once did.

Budget work sessions through July brought the numbers closer to balance, with Council working through several decision items to reduce the proposed funding gap and limit the draw on the General Fund reserve — keeping the projected reserve above the city's own policy floor of 20–25%.

A public hearing on the proposed tax rate was scheduled for September 15, which has now passed. The final vote on the budget and tax rate needs to happen before FY 2026-27 begins October 1.

To watch that vote or speak during a public comment period, Council meets in the Chambers at the Municipal Complex. Residents who want to address the Council in person can submit a Speaker's Request Form for any item on the posted agenda. Check highlandvillage.org for the confirmed meeting date, location, and agenda before you go.