Harris County, TX, August 17, 2026, Today Commissioners Court discussed proposed tax rates for the general fund, Harris Health (the public hospital system), and the Flood Control District for the upcoming fiscal year.
Harris County is currently facing a $189 million deficit, which is driven largely by law enforcement raises from last year, rising health care costs and inflation. While unfunded state mandates and federal cuts have contributed somewhat to the deficit, law enforcement raises and inflation are the largest factors driving the deficit.
The Office of Management and Budget (OMB) presented an FY27 budget proposal that maintains Harris County’s current level of service without cutting programs or laying off county employees. If Commissioners Court adopted a tax rate lower than the proposed voter approved rate of 3.5%, the highest tax rate option available to Commissioners Court, OMB would have to propose additional budget cuts.
The proposed tax rates that Commissioners discussed today, as well as their impact on Harris County residents, are as follows:
Harris County General Fund
Tax Rate Options
FY27 Tax Rate per $100 of Value
Projected Revenue*
Remaining Deficit
Impact on Avg. Homeowner
(appraised value of $402k)
FY26 No New Revenue (NNR) at 0%
$0.38667
$2.878B
$218M if all remaining OMB budget proposals accepted
+$43 annually
FY26 Voter- Approved Rate (VAR) at 3.5%
$0.41934
$3.096B**
$13M if all remaining OMB budget proposals are accepted
+$148 annually
Flood Control, Harris Health, and Port of Houston
Budget Impact
Flood Control
(VAR of 3.5%)
$0.05266
$266M
CLSS + service enhancements
+$13
Harris Health
$0.18692
(NNR)
$1.124B
$60M Surplus
(2% Margin)
+$10
$0.20374
(proposed)
$1.233B
$169M Surplus
(5.5% Margin)
+$64
$0.23917
(VAR of 8%)
$1.465B***
$402M surplus
(12.2% Margin)
+$178
Port of Houston
(NNR / 0%)
$0.00603
TBA
Debt obligations met
+$1
Total Tax Rate if all proposed rates are adopted: $0.681770
+$226
*Note: This is projected operating revenue, which includes M&O tax revenue and other sources (e.g. grant funds, fees collected).
**Estimated General Fund revenue includes a $16M draw-down of FY25 surplus funds (reserves) to balance the budget. Per OMB, this $16M will not be recorded as revenue.
***This revenue estimate is only projected operating revenue from property taxes. Harris Health’s total budget also includes federal funding, user fees, and other sources.
“Budgets are about priorities, and priorities are about values. If you look at my record, I have been consistent in voting for a tax rate lower than it was under my predecessor. I have also voted more than 10 times against substantial expenses the court ultimately approved, to the detriment of our budget. If I am going to seriously consider voting for a tax rate higher than it’s ever been while I’ve been in office, I need to make sure voters are informed about how we got here,” said Judge Lina Hidalgo.
Commissioners Court will further discuss tax rates, as well as the budget amendment process, on September 8, 2026.
Commissioners Court will hold a public hearing on proposed tax rates and formally adopt the 2026 tax rates and FY27 budget on September 17, 2026.
Residents can sign up to speak at an upcoming Commissioners Court meeting here.
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