Rodney Ellis

Harris County Commissioners Court voted Thursday to raise the county's property tax rate, a move that will increase tax bills for homeowners and other property owners across the county. Commissioners Leslie Briones, Adrian Garcia and Rodney Ellis approved the increase, which residents cannot directly control but can offset by ensuring they claim all exemptions for which they qualify.

Experts point to three key exemptions: the homestead exemption for a principal residence, which Harris County supplements with a 20% optional homestead exemption; the over-65 exemption, which varies by taxing jurisdiction; and the disability exemption, which school districts must offer at a minimum of $10,000 (homeowners generally cannot claim both over-65 and disability exemptions). Exemptions lower taxable value but don't eliminate tax bills, which still depend on rates set by local taxing entities.

Homeowners are also advised to keep property records current ahead of the next appraisal protest period. Analysts note the rate hike could ripple beyond homeowners, raising costs for businesses that may pass expenses on to consumers through higher prices.

Harris County's population grew by only about 1% over the past year, according to Rice University political science professor Mark Jones, who says the modest growth is driven almost entirely by natural births and international migration. Without immigration, he says, the county's population would already be shrinking.

Harris County Commissioners Court voted 3-1 to approve a $3.1 billion budget that raises the combined property tax rate about 7.9%, to a cap of 67 cents per $100 of taxable value, effective October 1, 2026. The county estimates the average homeowner will pay roughly $193 more per year. Commissioners Adrian Garcia, Rodney Ellis and Lesley Briones supported the hike, blaming state and federal policy under President Trump and Governor Abbott for shifting about $250 million in costs onto the county, including unfunded mandates and Medicaid non-expansion. Commissioner Tom Ramsey voted against it; Judge Lina Hidalgo abstained, warning the increase won't fix long-term finances. Jones warns slower growth means the tax burden falls on fewer residents, risking further migration to Fort Bend and Montgomery counties. Southwest Houston businesses report declining sales tied to immigration enforcement fears.

Harris County spends about $1.2 million a day to provide free health insurance to nearly 46,000 employees and retirees, an unusual benefit compared to peer governments and private employers that typically split premium costs with workers. The expense has doubled over the past decade and is now a central issue in the county's budget crisis, with a projected $181 million deficit and a possible 10% property tax increase under consideration.

The county's budget shows healthcare claims are expected to exceed revenue and reserves by $8 million in fiscal year 2026 and $102 million in fiscal year 2027. Commissioners rejected proposals requiring employees to pay into a base plan, though one pharmacy-related change affecting five people is projected to save $9 million. Commissioner Adrian Garcia floated grandfathering current employees while charging premiums to new hires. Critics, including Commissioner Tom Ramsey and Baker Institute fellow Bill King, argue the county has a spending problem driven by staffing growth and rising payroll, while other commissioners defend healthcare benefits as a commitment to workers amid broader budget pressures tied to state and federal funding cuts.