Georgetown's Tax Rates Went Up This Fall. Why Didn't the Average Bill?

"Because of decreasing property values the 36.32 cents per $100 of valuation rate means the average property tax bill is expected to remain the same." That sentence comes from the City of Georgetown's announcement of its FY2027 budget, adopted Sept. 8, 2026.

Home values in Georgetown fell, and the City raised its rate. The average homeowner's city tax bill came out nearly where it started. Meanwhile, water, wastewater, trash and stormwater charges went up, and none of those depend on what a house is worth. In many newer neighborhoods, a growing share of the MUD tax now goes to paying off debt. If you're comparing Georgetown homes this fall, the price cut on the listing is only half the math. The other half depends on which side of the city limits line the house sits on and which districts tax it.

Six Dollars on the Average Homestead

The City's required tax notice lays out the trade in one table.

The 2026 rate equals the City's voter-approval rate of $0.363167, the highest it could adopt without an election. It's just above the no-new-revenue rate of $0.362168. The council approved it 7-0. According to the Williamson County Tax Office's 2026 Truth-in-Taxation summary, the City's rate was $0.374 in 2022 and 2023 and $0.3647 in 2024, before dropping to $0.353 last year. This year's increase reverses part of that decline.

The average homestead bill fell from $1,428 to $1,422. The total levy rose by just over $2 million, or 3.91%. Those two figures can both be true because the average existing homestead is only part of the tax base. The City collects more in total while the typical homestead pays about the same.

A Flat Bill Did Not Mean a Comfortable Budget

Lower values cost the City more than a rate adjustment could cover. Community Impact reported on Oct. 23 that certified 2026 property values fell 1.8%, when the City had projected an 8% rise. City documents say that gap reduces debt and spending capacity by almost $100 million over the next three fiscal years.

At an Oct. 13 workshop, council members backed a revised capital schedule:

• Blue Hole Park construction moves to FY2027-28.
• The Recreation Center renovation and expansion moves to FY2028-29.
• The final year of 2015 Road Bond sidewalk work moves to FY2028-29.
• The planned May 2027 bond election is pushed back at least a year, and the City will revisit timing next summer when new valuations come in.
• The $12 million animal shelter expansion stays funded for FY2026-27, and design for Fire Station No. 9 is scheduled for FY2029-30.

So the City responded to the value drop in two ways. It set the rate at its ceiling, which kept revenue from the average homestead steady, and it delayed projects it could no longer afford on the old schedule. Neither change shrank the average bill.

The Charges That Ignore What Your House Is Worth

Utility rates went up at the same time, and those charges don't fall when appraisals do. As of Oct. 1, 2026, Georgetown's water base charge is up 4%, volumetric water charges are up 14% and wastewater rates are up 12%. The City estimates the combined increase at about $14 a month for a residential customer using 10,000 gallons. Over a year, that's roughly $168. The average city tax bill moved by about $6.

The City's published utility rate schedule also charges different amounts depending on where a customer lives. Here are the monthly fixed charges for a standard 5/8-inch residential meter:

Per-gallon water tiers are the same on both sides of the line. The fixed portion is $17.25 a month higher outside city limits before trash is counted. Some charges apply only inside city limits. The streetlight fee is $2.40 a month, and the residential stormwater rate goes from $6.50 to $8. Trash follows four tiers. Tier I is inside city limits. Tier II, at $38.50, covers MUDs contractually required to use City service. Tier III covers other MUDs and Tier IV covers the ETJ, both at $35.90, and that rate doesn't include bulky-waste or yard-trimming pickup. Those services are sold separately by TDS.

Two Georgetown homes listed at the same price can have different monthly utility costs, and those costs change on a different schedule from home values.

A MUD Rate That Holds Steady Can Still Be Changing

Many Georgetown-area subdivisions add a municipal utility district tax on top of the other rates. The City's trash FAQ lists the MUDs contractually obligated to use City services as MUD 15 Teravista, MUD 25 Water Oak, MUD 26 Cimarron Hills, MUD 30 Crescent Bluff and Parkside on the River MUDs 1 and 2. The table below covers the Georgetown ones from that list, plus Berry Creek Highlands. The County's Truth-in-Taxation summary shows each district's total rate and how it splits between operations and debt service.

The total rate at Water Oak, Parkside on the River MUD 1 and Berry Creek Highlands has been the same every year since 2022. What changed is the split. Over that period, more of each dollar went to debt service and less to operations. Crescent Bluff is the only district in this table whose total rate went up, from $0.7355 to $0.7585.

Using the City's own formula, tax equals rate times taxable value divided by 100. On $400,000 of taxable value, a $0.92 MUD rate comes to $3,680 a year. That's more than twice the $1,422 average homestead city bill.

A MUD address is not always outside the city. A 2024 bond official statement for Berry Creek Highlands MUD says the district lies entirely within Georgetown city limits, north of Shell Road and west of SH 195, and gets retail water and wastewater service from the City. Those homes pay the city rate and the MUD rate, and they get inside-city utility pricing. Each address has its own combination, and the parcel record is where to look it up. The state's Texas.gov/PropertyTaxes portal links to each local tax database, and the Williamson County tax office can confirm which entities tax a specific property.

Georgetown ISD Is Following the Same Pattern on the Nov. 3 Ballot

Georgetown ISD's numbers look a lot like the City's. Its Prop A election page describes a voter-approval tax rate election to ratify a total rate of $1.1106. The maintenance and operations rate would rise 9 cents and the interest and sinking rate would fall 3 cents. The ballot language reads "THIS IS A TAX INCREASE."

The district's estimate rests on falling values too. GISD says its 2026 median taxable value is $444,465, down from $461,064 last year. Under Prop A, the estimated district bill on that median home is $3,381, which GISD puts at $7.97 more per year, or 66 cents a month. Homeowners 65 and older with a qualifying tax freeze won't see school taxes rise above their frozen amount.

Sources disagree on what happens if Prop A fails. The district's page says the rate would return to $1.0506. Community Impact's August report described a no-pass rate of $1.0206, based on a lower debt rate the district had adopted in its budget. Early voting runs through Friday, Oct. 30, and Election Day is Tuesday, Nov. 3. The result will set the school portion of every Georgetown ISD tax bill this year.

What September's Sales Say About Leverage

The sales data shows where buyers have room to negotiate. In September 2026, the three Georgetown ZIP codes recorded 225 closed sales, down from 276 in September 2025. Sales volume fell from $139.54 million to $109.54 million. Average price per square foot slipped only from $214 to $210, and average days on market went from 81 to 79, according to Unlock MLS data published by Community Impact on Oct. 14. The ZIP codes moved differently. Prices in 78626 were roughly flat, and homes there sold two more times than the year before but took over 30% longer to sell. Prices in 78628 rose about 6% and prices in 78633 fell about 6%.

That gives buyers some room on the purchase price. The price is a one-time number, though. The utility charges, the MUD and city rates, and the school rate decided Nov. 3 come back every month or every year after closing. This fall the utility charges and the city rate went up, and the MUD rates in the table held steady or rose.

Quick Answers

Did Georgetown property taxes go down in 2026? The City's rate went up, to $0.363167 per $100. Because the average homestead taxable value fell 3.6%, the City's average homestead tax went from $1,428 to $1,422. Your own bill depends on your taxable value and on every entity that taxes your parcel.

Is every MUD home outside Georgetown city limits? No. Berry Creek Highlands MUD lies entirely within city limits, according to its 2024 bond official statement, so homes there pay both the city and MUD rates.

How much did Georgetown water and sewer bills go up? The City estimates about $14 a month for a residential customer using 10,000 gallons. The new rates took effect Oct. 1, 2026.

This post is general information, not legal, tax or financial advice, so confirm the numbers for your own address with the tax office or a qualified professional. When I help buyers compare homes in Georgetown, I look up the tax rates and utility charges for each address next to the list price, so the monthly cost is clear before you write an offer. If you're selling, I can put together the same cost breakdown for your home along with a free valuation. Reach out to Christie Minalga and let's go through it together.