Abilene homeowners face new tax rates and rising property values

ABILENE, Texas (KTAB/KRBC) – As Abilene taxpayers brace for the 2026 tax season, economist Dr. John Hill offers insights into the anticipated changes, outlining what residents can expect as they finalize tax rates.

Understanding property taxes can be confusing, especially with terms like “appraised value,” “tax levy,” and “homestead cap.” Dr. John Hill, a professor of economics at Hardin-Simmons University, clarifies how these tax rates impact citizens. He provides an example of what someone would pay in yearly taxes under the new rates if their home is valued at $100,000. Dr. Hill notes that the city of Abilene’s new tax rate has actually decreased compared to last year.

“For each $100,000. Last year it was $760. This year it’s $750. So, the city is saving you $10.10 on $100,000,” Dr. Hill said.

Dr. Hill next outlined the new tax rates for both Abilene ISD and Taylor County. Similar to the city, Abilene ISD decided to lower its tax rate, while Taylor County opted to increase its rates. Dr. Hill explained the calculations using a home valued at $100,000 as a reference.

“Last year it was $992. This year, it’s $958, representing a savings of $34.40. Last year, Taylor County was $548. This year it’s $557. And so, we’ve got $9.20 as the bump,” said Dr. Hill.

While many of these numbers appear positive for tax savings, Dr. Hill discussed another factor affecting Key City that will reduce those savings.

“Everything’s been really steady. But all of a sudden, we’ve had this new component to our economy that’s put the gas on the fire, which is the arrival of Lancium,” Dr. Hill said.

Currently, about 2,200 workers have arrived in town for the Lancium project, with that number expected to rise to 5,000 when the project reaches phase two. As a result, the inflow of workers, rental prices, and overall property values are steadily increasing. Dr. Hill noted that these factors significantly contribute to the costs consumers face.

“When we move into 2026 with this new rate, you’re going to be facing a lower rate thanks to the schools and thanks to the city. But you’re going to be facing a higher valuation,” Dr. Hill said.

Essentially, this means that despite the reduced rates, the overall percentage a homeowner pays will be higher due to the new and increasing property value rates. KTAB/KRBC attempted to obtain Wylie ISD’s new tax rates to factor into the calculations for this story. Still, the district has not yet made that information available to the public.