Are you wondering how rising property taxes will affect your homeownership or sale strategy in Houston in 2026?
At The Jamie McMartin Group, led by Jamie McMartin, we know that understanding property-tax trends is crucial when planning to sell your home. The Houston real estate market continues to evolve, home values remain strong, but rising property taxes are starting to influence affordability, buyer behavior, and ultimately, seller strategy.
If you’re a homeowner in Katy, Fulshear, or anywhere in Greater Houston, here’s what you need to know about what’s driving property-tax increases in 2026, and how to prepare strategically if you’re considering selling a home in Houston this year.
Why Houston property taxes are on the rise
Texas doesn’t collect a state income tax, which means property taxes play a critical role in funding local services, from schools to roads to emergency response. For Houston homeowners, that’s a double-edged sword: while the economy stays vibrant, rising home values and voter-approved levies have pushed property taxes to some of their highest levels in years.
According to data from the City of Houston’s FY 2026 budget, total property-tax revenue is projected to rise from roughly $1.38 billion in FY 2025 to $1.46 billion in FY 2026.
This increase stems from:
- Higher property assessments across Harris, Fort Bend, and surrounding counties.
- Local rate adjustments for school districts and infrastructure projects.
- Population growth fueling demand for public services.
A recent report from ABC13 Houston noted that Harris County commissioners approved measures in late 2025 that translated into 8–10% higher tax bills for some homeowners, adding hundreds, even thousands, of dollars to annual expenses.
In short: even if you’re not moving, your cost of ownership is increasing, and if you are thinking about selling, that change can directly impact your pricing and marketing strategy.
How rising property taxes affect homeowners planning to sell
1. Buyers are becoming more price-sensitive
As property taxes rise, buyers focus not just on list price but on total monthly cost, including taxes, insurance, and HOA fees.
For sellers, that means:
- A higher tax bill may narrow your buyer pool in certain price ranges.
- You’ll need to emphasize the long-term value of your home, not just its size or finishes.
- Homes in lower-tax areas of Houston (e.g., parts of Fort Bend County) may become more competitive.
We help our sellers at The Jamie McMartin Group identify how tax variations influence buyer demand in specific neighborhoods so we can price accordingly and avoid over-estimating market value.
2. Neighborhood competitiveness can shift
Communities with newer infrastructure or expanding amenities often experience faster property-value growth, leading to larger tax jumps. Neighborhoods like Cinco Ranch, Cross Creek Ranch, and parts of Katy ISD have seen appraised-value increases exceeding 10% in recent assessment cycles.
For homeowners, this means that while your equity is growing, so is your tax obligation. When marketing your property, we help you highlight the lifestyle benefits, schools, amenities, walkability, and value retention, that justify the price point even amid higher taxes.
3. Appraisal appeals and transparency matter
Houston-area homeowners have the right to protest appraised values annually. While we don’t provide legal or tax advice, we encourage sellers to:
- Review their county appraisal notice carefully each spring.
- Verify that property-record details (square footage, improvements, etc.) are accurate.
- If needed, consult a property-tax consultant or attorney experienced in Texas appraisal disputes.
A successful appeal can temporarily reduce your annual tax bill and make your property more attractive to buyers comparing overall cost of ownership.
4. Timing your sale could make a difference
Because property-tax assessments in Texas are based on January 1 valuations, listing or closing at different times of year can change how taxes are prorated between buyer and seller.
For instance:
- Selling before mid-year means your share of that year’s taxes is smaller.
- Selling after assessments rise could make your home appear less affordable, even if market value is consistent.
At The Jamie McMartin Group, we help clients weigh both financial and market-timing factors so you can maximize proceeds and minimize friction during negotiation.
How property taxes influence Houston’s 2026 market dynamics
The Houston housing market is entering a phase of balance. Inventory is higher than during the boom years of 2021-2022, and mortgage rates, while easing, remain higher than pre-pandemic levels. When you add rising property taxes to the equation, it affects every side of the transaction:
- Buyers weigh affordability more carefully.
- Sellers need sharper pricing and professional marketing.
- Appraisers factor tax rates and demand shifts into valuations.
According to HAR (Houston Association of Realtors), single-family home inventory has grown to about 5 months of supply, up from roughly 3 months a year ago, signaling a more balanced environment. With tax bills climbing, motivated buyers are still active but increasingly selective.
This means that if you’re considering selling a home in Houston, expert positioning is more important than ever.
Steps Houston homeowners should take in 2026
1. Get a current market analysis (CMA)
We’ll evaluate your home’s true market value, factoring in both comparable sales and cost-of-ownership trends.
2. Review your property-tax statement
Understand how your current assessment affects buyer perception. If your taxes rose significantly, we’ll build that into your marketing narrative and pricing plan.
3. Strategize around timing
If you’re considering listing mid-year, coordinate with your Realtor to discuss tax prorations and closing credits. Timing your listing around assessment cycles can save thousands.
4. Use your equity wisely
If your home value has grown faster than your comfort with rising taxes, it may be time to leverage that equity. Selling now could let you downsize, relocate, or move into a community with a lower tax base, all while maximizing your returns.
5. Partner with a Houston realtor who understands tax dynamics
Navigating a rising-tax environment requires local expertise. Our team has decades of experience helping Houston homeowners price strategically and communicate value clearly, even when market costs increase.
Why The Jamie McMartin Group is your best partner in 2026
When market conditions tighten or shift, you need more than just a Realtor, you need a strategist. Jamie McMartin and our team combine deep Houston-area knowledge with proven marketing and negotiation experience to help sellers stay ahead of the curve.
- Local expertise across Katy, Fulshear, West Houston, and surrounding suburbs.
- Data-driven market insights to interpret how taxes, rates, and inventory influence buyer behavior.
- Compliance and integrity, following all Fair Housing, RESPA, NAR Code of Ethics, and Texas Real Estate Commission standards.
- Comprehensive marketing that highlights your home’s advantages while addressing cost-of-ownership concerns transparently and effectively.
Bottom line: taxes are rising, but strategy protects your value
While property taxes in Houston are rising in 2026, this trend doesn’t have to hurt your home’s value or sale potential. The key is preparation, clarity, and smart positioning.
Whether you’re planning to sell this year or just exploring options, we can help you:
- Evaluate your equity and pricing potential.
- Understand how taxes influence buyer demand.
- Create a tailored plan to market your home effectively in Houston’s evolving real-estate landscape.
Ready to find out how your rising property taxes impact your home’s value? Contact The Jamie McMartin Group today for a complimentary home-value and market-strategy consultation. Let’s turn today’s tax challenges into tomorrow’s selling advantage.