Each August, the Arlington City Council determines the city's property tax rate as part of its annual budget approval process. Property taxes constitute a significant portion—45%—of the City of Arlington’s General Fund, which supports essential programs, services, and public infrastructure across the 99-square-mile city.
A Look at Arlington's Property Tax Rate History: For 12 consecutive years, from Fiscal Year 2004 to Fiscal Year 2016, Arlington maintained a property tax rate of $0.648 per $100 of assessed value. Starting in Fiscal Year 2017, the City Council began consistently lowering the tax rate for eight straight years, leveraging increased assessed property values to generate additional revenue. Notably, the Fiscal Year 2023 budget saw a two-cent tax rate reduction, the largest in 30 years, followed by another one-cent decrease in Fiscal Year 2024.
However, last August, the Council approved the first property tax rate increase in 20 years to balance the Fiscal Year 2025 budget. This one-cent increase, alongside $5.8 million in cost-saving measures, generated approximately $4 million in revenue. This allowed the City to fulfill voter-approved commitments and continue services with strong resident demand, such as public safety, community cleanliness, and the opening of ACTIV. The increase returned the City’s property tax rate to its level from two years prior.
Currently, Arlington’s property tax rate stands at $0.5998 per $100 of assessed value, which is lower than rates in neighboring cities including Mansfield, Kennedale, Dalworthington Gardens, Fort Worth, and Dallas.
Understanding Your Total Property Tax Bill: While the City of Arlington sets its tax rate, the Tarrant Appraisal District is responsible for assessing the value of each property. For instance, the owner of a home appraised at the median value of $330,000 in Arlington would pay approximately $1,980 annually to the City. This equates to about $164 per month, funding vital city services such as police, fire, parks, libraries, streets, and 911.
It's important for taxpayers in Tarrant County to note that they receive a single bill from the county’s assessor-collector, which combines property taxes owed to all taxing entities. Taxes specifically owed to the City of Arlington typically comprise about 20% to 25% of an Arlington homeowner's total property tax bill, depending on the school district in which the home is located. The remaining portion of the bill includes taxes owed to other entities like Tarrant County, Tarrant County College District, the Tarrant County Hospital District, and the local school district, each of which sets its own tax rate.
