Politics
Lubbock's Property Tax Rate Among the Lowest in Texas, But Residents Still Pay More Than Most Peers
A comparison of city budget structures across Texas shows Lubbock residents face a relatively high property tax burden in dollar terms despite a competitive nominal rate, driven largely by rising appraised values and growing demand for city services.
How we reported this
Lubbock's adopted property tax rate for fiscal year 2025-2026 sits at approximately $0.424 per $100 of assessed valuation, a figure the city has held near its current level after voters approved a revenue cap under Texas Senate Bill 2, the 2019 property tax reform law that limits annual city and county revenue growth to 3.5 percent before triggering a mandatory rollback election. The policy affects every homeowner, landlord and commercial property operator within city limits, and its downstream effects show up in everything from the Lubbock Police Department's staffing budget to the condition of streets in East Lubbock neighborhoods.
The comparison to peer cities matters right now because the Lubbock City Council is expected to begin preliminary budget discussions for fiscal year 2026-2027 this month, with a formal public hearing required before any rate adoption in September. Texas law under the Tax Code, Chapter 26, requires taxing units to publish an effective tax rate and a rollback rate, giving residents a formal window to evaluate whether their city is keeping pace with, or pulling ahead of, comparable communities on the cost-of-government spectrum.
How Lubbock Stacks Up Against Amarillo, Midland and Abilene
Among the four major cities on the Texas South Plains and Permian Basin corridor, Lubbock's nominal rate is comparable to Amarillo's, which adopted a rate near $0.37 per $100 valuation for 2025-2026, and below Midland's rate of roughly $0.46 per $100 valuation. Abilene has historically maintained a rate above $0.50 per $100 valuation to fund a wider set of municipal services. However, tax rate comparisons alone do not capture actual burden. Because Lubbock's median home value, estimated by the Texas Tech Real Estate Center at approximately $195,000 to $210,000 in recent appraisal cycles, has climbed faster than in Amarillo over the past three years, many Lubbock homeowners have seen effective annual tax bills rise by $200 to $400 even when the nominal rate held flat. That gap shows up in residents' actual escrow payments each month.
The city's general fund for fiscal year 2025-2026 totaled roughly $319 million, with public safety, including police and fire, consuming about 58 percent of that total. Street maintenance and transportation accounted for a further 12 percent. Those proportions are broadly in line with similarly sized Texas cities, according to data compiled annually by the Texas Municipal League, but they leave less budgetary room for parks, libraries and social services than cities such as Lubbock's size in North Texas, where a broader sales tax base and higher commercial density offset residential property tax reliance. Lubbock does collect a 2 percent local sales tax, the maximum allowed under Texas Tax Code Chapter 321, which contributes to economic development and street maintenance through dedicated sub-funds including the Type B Economic Development Corporation.
What the Numbers Mean for Residents Day to Day
For a homeowner with a property appraised at $200,000 and a standard homestead exemption of $100,000 now in effect under the Texas Legislature's House Bill 3 from 2023, the taxable value drops to $100,000, producing an annual city tax bill of roughly $424. That exemption increase, which the legislature raised from $40,000 to $100,000, delivered meaningful relief to Lubbock homeowners starting in tax year 2023 and has held in place through the current cycle. Renters do not receive the exemption directly, but policy analysts note that landlords typically pass appraised value increases through to lease prices over time, meaning renters in Lubbock's tight housing market, where vacancy rates in some ZIP codes remain below 5 percent, feel property tax pressure indirectly through rent adjustments.
The city is projected to present its proposed 2026-2027 budget to the full council in August, with public comment sessions expected at Lubbock City Hall, 1625 13th Street, before the required adoption deadline. Residents can access the current adopted budget, the effective tax rate calculation worksheets and prior-year comparisons through the city's Finance Department portal. Under SB 2, if the council proposes a rate that exceeds the 3.5 percent revenue growth threshold, Lubbock voters would have the automatic right to petition for a rollback election, a mechanism that has not been triggered in Lubbock since the law took effect but remains a formal check on local budget growth.