Bee Cave Property Tax Rates in 2026: What Shapes Your Bill

For the 2026 tax year, the City of Bee Cave charges $0.0200 per $100 of taxable value. On the average taxable homestead of $768,061, that works out to about $153.61 a year. A buyer comparing Bee Cave with Lakeway might take that as a deciding advantage. It is a real difference, but a small one. The city line is about 1% of a Bee Cave tax bill, and some well-known homes with Bee Cave addresses don't pay it at all.

When you compare these two communities, the useful question is which taxing units cover a specific parcel. Which city's rate is lower matters much less. The rest of this post builds the bill one line at a time, the way a project manager reads a construction budget.

A City That Collects More From Franchise Fees Than From Homeowners

Bee Cave City Council kept the $0.0200 rate at its Sept. 22 meeting. Community Impact reported that the rate has stayed there for more than 15 years. The new budget and rate took effect Oct. 1.

The city's own FY 2026-27 budget document explains why the rate can stay that low. It names sales tax as "the primary source of revenue to the general fund." These are the budgeted General Fund lines for fiscal year 2027:

Property tax ranks fifth on that list. The city expects to earn nearly three times as much interest on its reserves as it collects from property owners. Sales tax brings in almost 78% of the city's revenue. A separate Road Maintenance Fund budgets another $927,500 in sales-tax receipts, and the city also runs an Economic Development 4-B Sales Tax Fund.

The budget is cautious in one revealing way. Sales tax came in at $11,544,144 in FY 2025 and is estimated at $11,301,246 for FY 2026. The FY 2027 budget assumes less than either year, at $11,100,000, and still projects a surplus of about $1.49 million. Because the city's revenue depends so little on homeowners, falling home values barely touch it. The average taxable homestead value dropped slightly, from $768,375 to $768,061, and the average city bill fell by seven cents.

Lakeway Shows What the Other Funding Model Looks Like

Lakeway, next door, works differently. Its council approved a no-new-revenue maintenance and operations rate of $0.1701 per $100, up from $0.1696. The city's taxpayer impact figures, as reported by Community Impact, put the annual city bill on the median taxable homestead of $739,157 at $1,276, or $29 more than the year before. Multiplying the rate by that median value gives about $1,257, so the city's figure rests on inputs the coverage doesn't spell out. Either way, the city line comes to well over $1,000 a year.

Lakeway's vote was close. Community Impact reported that the budget passed 4-3 and the rate passed 5-2. Back in June, the city had projected a $1.6 million shortfall, with revenue down nearly 5.5% and building and development revenue expected to fall by more than half. City staff recommended the de minimis rate, which would have raised more. Council chose the lower rate, and the remaining $581,000 gap will be covered from savings and reserves.

When a city leans on property tax, a slowdown in construction lands on the rate debate. When a city leans on sales tax, homeowners mostly don't feel it. For a buyer, Lakeway's city line is meaningful, but it is still a small piece of a much larger bill.

The Lines That Actually Fill the Bill

A homestead in Bee Cave city limits typically sees five taxing units. These are the 2026 adopted rates, per $100 of taxable value:

1. Lake Travis ISD: $1.0329, made up of $0.7054 for maintenance and operations and $0.3275 for debt service.
2. Travis County: $0.386210.
3. Central Health: $0.132863.
4. Travis County ESD No. 6: $0.093639. Travis County identifies this district as Lake Travis Fire and Rescue.
5. City of Bee Cave: $0.0200.

To see the proportions, here is a simple illustration at $1,000,000 of taxable value, before any exemptions. It is not a quote for any specific home.

In this example, Bee Cave's city line is about 1.2% of the total and the school district is about 62%. The two cities differ by roughly $1,500 per million dollars of value. That is real money. It is also less than the gap that a change in appraised value or eligibility for an exemption can create. The Lakeway column assumes a parcel inside both Lake Travis ISD and ESD No. 6. Lake Travis Fire and Rescue's own planning document says the district covers Bee Cave, Lakeway, The Hills and unincorporated western Travis County, but that doesn't guarantee every parcel in those cities is inside it.

Two Lines Buyers Often Assume, and Shouldn't

Austin Community College. ACC adopted a rate of $0.103643 for 2026. ACC's district page lists Lake Travis ISD in its service area but not in its taxing district. Its "in district" list covers Austin, Del Valle, Elgin, Hays, Leander, Lockhart, Manor and Round Rock ISDs, plus the City of Austin. A Bee Cave estimate that includes the ACC line has likely overstated the bill.

The Bee Cave city line in Spanish Oaks. The city's neighborhood directory lists Falconhead, Falconhead West, The Uplands, Homestead and Ladera inside city limits. It lists Spanish Oaks and Lake Pointe outside them. So Spanish Oaks owners don't pay the $0.0200 Bee Cave rate, even though the address and the lifestyle point to Bee Cave.

Living outside city limits doesn't mean a shorter bill, though. Travis County's rate table includes special districts such as West Travis County MUD No. 8, at $0.485000 for 2026. We haven't confirmed which special districts, if any, tax parcels in Spanish Oaks, Falconhead or Falconhead West. That is exactly the question to settle parcel by parcel before comparing two homes. A MUD rate at that level would cost many times more than Bee Cave's city line.

The Lowest School Rate on Record Doesn't Mean a Smaller Bill

The largest line moved down this year. The Lake Travis ISD board adopted $1.0329 at its Aug. 19 meeting, down from $1.0397. Community Impact headlined it as the lowest rate in district history, and also reported that homeowners may still see higher bills despite the lower rate. The bill is the rate multiplied by the appraised value, so a rising appraisal can more than cancel out a small rate cut.

The school line is also where the biggest exemption applies. The Texas Comptroller states that school districts must provide a $140,000 residence homestead exemption. In the Comptroller's example, a qualifying $300,000 home is taxed by the school district as if it were worth $160,000. To qualify for the general homestead exemption, an owner generally has to apply and occupy the home as a principal residence. That exemption reduces only the school portion. County, Central Health, ESD and city lines are calculated on their own terms. Exemption status is also one reason a seller's last bill can be a poor guide to what the next owner will pay.

Frequently Asked Questions

Does Bee Cave's low city rate make it the lower-tax choice over Lakeway? For two parcels with the same taxable value and the same other taxing units, the Bee Cave parcel has a smaller city line, about $1,500 less per $1,000,000 at 2026 rates. Whether the total bill ends up lower depends on special districts, exemptions and the appraised value of each parcel.

What about The Hills? The Hills is a separate city with its own rate. Its 2025 adopted rate was $0.092 per $100. We haven't confirmed an adopted 2026 figure, so a current comparison needs the city's final rate.

Where can I see which units tax a specific home? The Travis Central Appraisal District lists the jurisdictions for each parcel. Travis County publishes current adopted rates for every unit, including MUDs and ESDs.

If you're weighing a home in Spanish Oaks against one in Falconhead or Lakeway, Casey Marquez can help you lay out each parcel's taxing units line by line before you write an offer, so the estimate you plan around matches the bill the home will actually receive. Let's Connect.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.