homesteads are capped at 10% increase in valuation. City budgets are capped at 3.5% without a vote. The largest share of property taxes is actually school dist

homesteads are capped at 10% increase in valuation. City budgets are capped at 3.5% without a vote. The largest share of property taxes is actually school districts which run roughly 50% of the property tax in austin. The city is 25% and the other 25% is the county, health district, and community college. Tax rates float. If the valuations double, but the taxing entity budgets stay the same, then the tax rate will drop in half. Rising valuations dont have much to do with the increase in taxes over time.