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Property Taxes
2025 Adopted Property Tax Rate
The City Council adopted a tax rate for 2025 of $0.358827 per $100 on September 16, 2025.
The Ordinance to adopt the tax rate can be found here: Ordinance No. 2387
Truth in Taxation Calculations
The City of Sugar Land contracts with the Fort Bend County Tax Assessor-Collector for billing and collection of property taxes, including calculation and submission of the No New Revenue and Voter Approval Tax Rate calculations as required under the Texas Tax Code 26.04.
The Notice of Tax Rates and the TNT calculation worksheets can be found at the links below:
2025 Tax Rate Calculations
| Type | Rate per $100 | Explanation |
|---|---|---|
| Proceeding Year's Tax Rate | $0.353210 |
2024 Adopted Tax Rate |
| No New Revenue Tax Rate | $0.367991 |
Tax rate that generates the same revenue as the 2024 tax rate |
| Voter Approval Tax Rate | $0.377063 |
Tax rate that cannot be exceeded without voter approval |
| Adopted Tax Rate | $0.358827 |
2025 Adopted Tax Rate |
Truth in Taxation Process
Once the City receives the certified value reports from the CAD, the process of setting a tax rate for the year begins. The City has 60 days after receiving the certified tax roll or until September 30th (whichever is later) to adopt a tax rate. However, there are strict time constraints and processes that must occur in order to adopt the tax rate.
- The No New Revenue Tax Rate is the tax rate that generates no additional revenue for the City. New values to the tax roll are excluded from this calculation.
- The Voter Approval Rate is the tax rate that generates the revenue needed to meet the City's debt service obligations, plus 3.5% increase in revenue for operations and maintenance. Adoption of a rate over this amount requires approval by voters in November.
Tax Rate Setting Process
The property tax rate is adopted in September after the budget is approved by City Council. Prior to considering the tax rate, a public hearing is held to receive feedback from the public.
Property values in Fort Bend County are set by the Fort Bend Central Appraisal District (CAD). The CAD is charged with establishing values for all properties in the County as of January 1 of each year and certifying the taxable values to each taxing entity. Under the Tax Code, the value must be certified by July 25 of each year. However, 95% of property in the county must be approved before the Chief Appraiser can certify the values.
Since the City Charter requires the City Manager to file a proposed budget no later than July 30 of each year, the budget is based on assumptions of property tax revenues. The tax rate needed to generate the revenue in the proposed budget and CIP is dependent on the final certified taxable value.
Taxpayer Impact Statement*
Pursuant to Section 551.043(c) of the Texas Government Code
Tax Year 2024 Fiscal Year 2025 Adopted Budget | Tax Year 2025 Fiscal Year 2026 Budget at Adopted Tax Rate | Tax Year 2025 Fiscal Year 2026 Budget at No-New Revenue Rate | |
|---|---|---|---|
| Tax Rate | 0.35321 | 0.358827 | 0.367991 |
| Homestead Exemption % | 15% | 15% | 15% |
| Median Valued Homestead Assessed Value | $442,703 | $461,735 | $461,735 |
| Homestead Exemption | $66,405 | $69,260 | $69,260 |
| Median Valued Homestead Taxable Value (Net of Homestead Exemption) | $376,298 | $392,475 | $392,475 |
| % Change Homestead Taxable Value | 4.30% | 4.3% | |
| Tax on Median Valued Homestead | $1,329 | $1,408 | $1,444 |
| Changes from Prior Year | $79 or 6.0% | $115 or 8.7% |
*Impact will vary depending on individual home value changes.
Tax Rate and Budget Information
The following information is provided in compliance with Section 26.18 of the Tax Code. For convenience, where information resides elsewhere on this site, links are provided to the information.
Official contact information for the governing body: Mayor and City Council
Budget Information: FY2023 Budget | FY2024 Budget | FY2025 Budget | FY2026 Budget
Audited Financial Report: FY2024 Annual Comprehensive Financial Report
Tax Rate and Budget Information
TY2023 | TY2024 | TY2025 | |
|---|---|---|---|
| M&O Tax Rate | $0.203962 | $0.207172 | $0.207172 |
| Debt Service Tax Rate | $0.146038 | $0.146038 | $0.151655 |
| Total Tax Rate Per $100 | $0.350000 | $0.353210 | $0.358827 |
Budgeted Tax Revenue
| FY2024 | FY2025 | FY2026 | |
|---|---|---|---|
| M&O | $39,707,331 | $43,003,149 | $43,640,005 |
| Debt Service | $28,430,684 | $30,199,461 | $31,820,406 |
| Total Budgeted Property Tax | $68,138,015 | $73,202,610 | $75,460,411 |
| Total Operating & Capital Budget | $353,422,068 | $569,880,426 | $607,442,206 |
| Budget Change from FY25 | --- | $37,561,780 | 6.59% |
Tax Comparison Table for SB2
| Description | TY2024 | TY2025 | Change |
|---|---|---|---|
| Average Home Value | $505,735 | $522,316 | $16,581 |
| Homestead Exemption | -$75,860 | -$78,347 | -$2,487 |
| Average Taxable Value | $429,875 | $443,969 | $14,094 or 3.3% |
| Rate per $100 | $0.353210 | $0.358827 | $0.005617 or 1.6% |
| Tax on Average Homestead | $1,518 | $1,593 | $75 |
| Total Tax Levy on All Properties* | $78,232,236 | $76,352,251 | -$1,879,985 or -2.4% |
*Tax Levy calculate using Texas Property Tax Code definition from No New Revenue Tax Rate worksheets
Residential Exemptions
| Exemption Type | Amount Available |
|---|---|
| Homestead | 15% of Assessed Value |
| Over-65 | $70,000 |
| Disabled Persons | $70,000 |
| Over 65 and Disabled? | May only receive one of the above |
| Disabled Veterans | Contact the FBCAD to determine availability |
Did you know?
- With the tax breaks provided by the legislative increase in the school homestead exemptions ($100,000), the City of Sugar Land now makes up about 21% of the residential tax bill in Fort Bend ISD and 19% in Lamar CISD (without MUD or LID taxes). If you add a MUD or LID, the percentage drops even lower. Residential Tax Bill Breakdown
- Sugar Land's tax rate is one of the lowest in the state for cities our size.
- Over the last 17 years, the average value home has increased by about 4.6% annually, while the average tax bill has only increased by about 4.0% annually over the same time period. The city has accomplished this through lowering the tax rate and increasing the homestead exemption from 1% to 15%. Average Residential Tax Bill Increase
- Did you know your city tax bill would be nearly double if your home was located in a comparable city in the Houston region such as Pearland, League City or Missouri City? Since 1993, Sugar Land has lowered its tax rate from 50 cents to 35 cents through economic development and growth in sales tax revenue – and has one of the lowest property tax rates in the State of Texas among cities our size. Historical City Tax Rates & Exemptions
For tax payment information, please contact the Fort Bend County Tax Assesor/Collector.
To apply for any of the exemptions above, or for questions regarding your property valuation, please contact the Fort Bend County Appraisal District.