The Princeton City Council has put forward a proposal to raise the local property tax rate for the upcoming fiscal year. According to a recent notice of public hearing, the suggested total tax rate stands at $0.549999 per $100 of assessed value. This figure represents a 24.94% jump compared to the previous year's rate.
The Texas Public Policy Foundation notes that this proposed increase coincides with an expected 3.8% decline in home values. The organization states that combining a substantial rate hike with stagnant property values will lead to higher tax bills for residents. Based on the city's own estimates, the typical homeowner’s annual tax obligation is projected to rise from $1,426.25 to $1,714.13.
This translates to an increase of $287.88 per household, or 20.18%, over the next year.
While the council has proposed this higher rate, the source indicates that officials retain the discretion to select a different option. The no-new-revenue (NNR) tax rate is cited as an alternative that would hold tax receipts constant, providing a more stable financial outlook for homeowners and businesses.
The NNR rate is described as a mechanism that allows residents to catch up with their financial obligations without immediate increases in total revenue collection.
Residents who wish to influence this decision have the opportunity to participate in a public forum. The city is hosting a hearing to solicit input from taxpayers and allow them to voice concerns regarding the proposed figures. This event is scheduled for August 17, 2026, at 6:00 PM.
