El Paso Lowers Property Tax Rate, Bills Rise Due to Home Values

The City of El Paso is proposing to reduce its property tax rate for Fiscal Year 2026 to $0.759649 per $100 of valuation, the lowest rate in a decade, as approved unanimously by the City Council. Despite this reduction, many residents will see an increase in their property tax bills due to rising home values, which increased from an average of $209,718 to $221,191, resulting in an average tax bill increase of $83 annually. City officials emphasized that the city does not control property valuations, which are determined by the Central Appraisal District under state law. The FY 2026 budget of approximately $1.4 billion includes investments in public safety, infrastructure, and restored funding for city services previously cut. The budget also increases the Over 65/Disabled exemption from $42,500 to $45,000, benefiting over 57,000 homesteads. City leaders highlighted that the tax rate reduction and budget reflect careful financial stewardship amid rising property values.