Hico TX Real Estate: Why the City's 2026 Tax Notice Says "Increase" When Your Bill May Go Down

If you saw the City of Hico's "Notice of Public Hearing on Tax Increase" this fall and did a double take, you're not alone. The same notice shows the tax on the average Hico home going down. Both things are true, and understanding why will help you read any tax notice, whether you own in Hico or you're thinking about buying here.

What does Hico's 2026 tax notice actually say?

The City of Hico posted its notice on its website. The key rates are per $100 of taxable value:

• Proposed 2026 rate: $0.35628774
• 2025 rate: $0.356362
• No-new-revenue rate: $0.32609180
• Voter-approval rate: $0.35628775

The city held its public hearing on Sept. 14, 2026, at 5:30 p.m. at Hico City Hall, 120 W. First Street. The notice also says the proposed rate is not above the voter-approval rate, so no election is required.

So is it an increase or not?

Here's the catch. The state requires a city to call it a "tax increase" any time the proposed rate is higher than the no-new-revenue rate. That's the rate that would collect about the same dollars as last year from the same properties. Hico's proposed rate is a hair lower than last year's rate but higher than the no-new-revenue rate, so the notice uses the "increase" label.

Why the gap? The no-new-revenue rate is $0.3261, below last year's $0.3564. That tells you the city's overall taxable property base grew, so the same old rate collects more dollars than it did last year. The notice's own numbers show it: the total tax levy rises about 5.7 percent even though the rate is basically flat. Meanwhile, the notice says the average Hico homestead's taxable value went from $177,658 in 2025 to $171,942 in 2026, a drop of about 3.2 percent. Averages for homesteads and totals for the whole city can move in different directions, and that's what happened here.

What does it mean for Hico homeowners and buyers?

From the city's own table:

On the average homestead, the city tax goes down by about $20.50. For the city as a whole, the total levy goes up by about $29,992 (roughly 5.7 percent). The difference comes from the rest of the city's tax base, which the notice doesn't break out.

Your own bill depends on your property's value and exemptions, not the average. And the city is only one of several taxing units on your Hico address. School district, county, and others are separate bills.

If you're buying in Hico, ask for the full tax breakdown on the specific address. If you're selling, be ready to show your most recent tax statement.

My take: what I'd do right now

1. Confirm what was adopted. The notice shows the proposed rate and the Sept. 14 hearing. Call City Hall to confirm the final rate the council adopted.
2. Look up your own value. Check your property's taxable value and exemptions with the Hamilton County Appraisal District. The notice lists the Hamilton County tax assessor at 254-386-8945 for help with the math.
3. Learn the three words. No-new-revenue rate, voter-approval rate, and proposed rate. Once you know them, any city or county notice makes sense.
4. Plan for the bill. Tax statements typically arrive in the fall and are due by the end of January. If you don't escrow, put the date on your calendar.

Taxes are a question for your CPA, and financing questions belong with your lender. I'm happy to point you to the right documents.

Sources

• City of Hico, Notice of Public Hearing on Tax Increase, accessed Oct. 9, 2026
• City of Hico, home page, accessed Oct. 9, 2026

Information is deemed reliable but not guaranteed and is for general purposes only. Karen Fox, REALTOR®, Moore Home & Ranch Realty. Equal Housing Opportunity.

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