Buda Proposes $81.7M Budget, Higher Property Tax Rate: What Homeowners Need to Know

Buda officials recently unveiled the proposed $81.7 million budget for FY 2025-26, which includes a slight increase in property tax rates for local homeowners. The budget, presented during an Aug. 13 City Council special meeting, outlines major investments in infrastructure, public safety, and parks—but also means residents will see some changes to their monthly bills.

Breaking Down the Budget

The proposed budget allocates:

• $54.2 million toward operating expenses
   
• $27.5 million for capital projects, including mobility improvements, public safety initiatives, and upgrades to the city’s sportsplex
   

Property Tax Impacts

The proposed tax rate is set at $0.3576 per $100 valuation, up from last year’s $0.3395.

• Average home value (FY 2025): $411,609 (a $21,000 decrease from the prior year’s appraisal)
   
• Average property tax bill (FY 2025): $1,454
   
• Estimated bill under new rate: $1,471, or about $122.66 per month
   

While the increase may seem modest, city officials note it represents a 5.74% increase in total property tax revenue, adding roughly $625,586 to the city’s coffers.

Utility Rate Changes

In addition to property taxes, homeowners will see a 9% water rate increase, equating to about $6.23 more per month for the average customer. Sanitation fees will remain unchanged.

What This Means for Homeowners

For Buda residents, these changes highlight the balance between paying a bit more each month and funding key improvements that will support the city’s rapid growth. Investments in mobility, safety, and community amenities may help sustain property values long term, but in the short term, rising costs can feel like added pressure for homeowners already juggling rising expenses.

Get Involved

The City of Buda will host two public hearings at City Hall for residents to share their input:

• Sept. 2 at 6 p.m.
   
• Sept. 16 at 6 p.m.
   

If the new tax rate is adopted, qualified voters may also petition the city to hold an election to determine if the rate should be reduced.

Homeowner Tip

Budget and tax rate changes are a reminder to review your homestead exemption and ensure you’re receiving every property tax break you qualify for. A Realtor familiar with local tax structures can also help you understand how rising rates might affect your home value and monthly budget.

About Karlyn Ellis

Karlyn Ellis is a trusted local real estate broker specializing in South Austin, Buda, and Kyle, Texas. Known by her clients as one of the best realtors in Buda, Kyle, and Austin, Karlyn provides homeowners with expert guidance on everything from understanding property tax impacts to navigating buying and selling in a competitive market. Whether you’re a first-time buyer or preparing to sell, Karlyn is your go-to local realtor for real estate insight and personalized service.