The City of Lorena's own 2026 figures show a home that lost taxable value and still owes more. The average homestead inside the city limits was valued at $301,800 for tax purposes in 2025 and $292,092 in 2026, a 3.22% drop. Yet the city tax on that average home went up from $1,701.95 to $1,768.01. Those figures come from the table the city published with its September 8, 2026 council agenda.
| City of Lorena, average homestead | 2025 | 2026 | Change |
|---|---|---|---|
| City tax rate per $100 of value | $0.563934 | $0.605292 | +7.33% |
| Average homestead taxable value | $301,800 | $292,092 | -3.22% |
| City tax on that home | $1,701.95 | $1,768.01 | +$66.06, or 3.88% |
| Total city levy, all properties | $1,215,056 | $1,278,513 | +5.22% |
Texas sets property tax rates this way on purpose, and it matters for anyone looking at a Lorena listing this fall. A softer appraisal year doesn't carry through to a smaller city bill, because the rate has already moved to absorb it.
The first dip in Lorena's tax base in a decade
The city's adopted FY 2026-27 budget includes a levy history going back to 2017. Every year through 2025, the city's assessed valuation rose, from about $110.4 million in 2017 to about $216.1 million in 2025. For 2026 it fell to about $211.2 million. That is the first decline in the table.
Lorena wasn't the only one. The Waco Tribune-Herald reported that McLennan County's taxable values rose 1.8% overall in 2026, to almost $31.36 billion, and single-family residential values rose 1.6%. But 12 of the 20 cities at least partly in the county saw their taxable values fall, with Hewitt, Lorena and McGregor each down about 3%. The same report noted how much the protest process shapes the final numbers. The preliminary countywide taxable total was $33.4 billion before protests worked through, compared with the certified total of about $31.38 billion.
Earlier in the year, in the Tribune-Herald's coverage of preliminary appraisals, McLennan Central Appraisal District Chief Appraiser Jim Halbert described it as a year when "on the residential side, values for 2026 were pretty flat overall."
The rate that moves on its own
For a city budget, a shrinking tax base is a problem with a formula built in. Each year, Texas taxing units calculate a no-new-revenue rate. The Texas Comptroller explains that this rate is meant to raise the same amount of tax from the same properties as the year before, so when taxable values fall, the rate rises to make up the difference.
That is what happened in Lorena. The city's no-new-revenue rate went from $0.535864 per $100 in 2025 to $0.583563 in 2026 before the council voted on anything.
Apply that rate to the average 2026 homestead value of $292,092 and the city tax comes to about $1,704.54. That is within three dollars of the $1,701.95 the same average home paid in 2025. The lower appraisal and the higher rate roughly cancel each other out, which is how the formula is designed to work.
"It's important to remember that the appraisal district does not set tax rates or determine the budgets of taxing entities," Halbert told the Waco Tribune-Herald.
Where the extra $66 came from
The gap between that roughly flat $1,704.54 and the actual $1,768.01 comes from the council's rate decision. Texas also calculates a voter-approval rate, which the Comptroller describes as the maximum rate a taxing unit can adopt without going to voters. Lorena's 2026 voter-approval rate was $0.605292, and that is the rate the council adopted.
The city's notice of adopted tax rate, posted September 17, 2026, says the rate effectively raises maintenance-and-operations taxes by 3.5%, or about $36.90 on a $100,000 home. The budget cover page puts the total property tax revenue increase at $59,682, or 4.90% over the prior year's budget, with $36,686 of the revenue coming from new property added to the roll. The budget passed with four votes in favor, one abstention, and the mayor present but not voting.
For an existing owner, the calculation works out like this:
- The appraisal dip pushed the no-new-revenue rate up, so the bill would have stayed about the same.
- The council then adopted the higher voter-approval rate, which accounts for the increase.
- Together, the average homestead in the city limits paid $66.06 more in city tax for 2026.
One Lorena address, two different value trends
The headline figure for "Lorena" depends on which boundary you're looking at. In the Tribune-Herald's preliminary-appraisal coverage, the average residential market value in the City of Lorena slipped from $315,319 to $313,314. In Lorena ISD, which covers more territory than the city, it rose nearly 2%, from $436,452 to $445,085.
The rates moved in different directions too. For 2026, the main taxing units that show up on Lorena-area statements look like this:
- City of Lorena: $0.605292 per $100, up from $0.563934, for property inside the city limits.
- Lorena ISD: $0.964349, down slightly from $0.968449. The district's business page lists both rates, though one line on the same page describes the change as zero.
- McLennan County: $0.374805, up from $0.334805, according to the county's historic tax rate table.
- McLennan Community College: about 14.07 cents per $100 for 2026, up from 13.1974 cents. The county's table and the college's own notice differ in the fifth decimal place.
The school line also has the largest exemption. The Comptroller lists a mandatory school-district residence homestead exemption of $140,000, plus an additional $60,000 for qualifying homeowners who are 65 or older or disabled. The Comptroller's 2025 legislative summary credits the increases to SB 4 and SB 23. The city's 2025 roll summary lists no local homestead or over-65 exemptions on the city side.
So two homes with the same price can have very different tax bills. A home inside the city limits pays all four rates, including the one that just rose 7.33%. A home in Lorena ISD outside the city limits doesn't pay the city rate at all. In this school district, which side of that line a house sits on can change the total tax rate by about 60 cents per $100.
Reading the tax line on a Lorena listing
A listing's tax figure usually shows what the current owner paid, and that number reflects their exemptions, their appraisal history and last year's rates. For a Lorena home this fall, a few details explain why your number may be different.
- Which taxing units apply. Whether the address is inside the city limits decides whether the $0.605292 city rate is on the statement.
- The seller's homestead status. The $140,000 school exemption only shows up on a bill if the owner has claimed it.
- The appraisal cap. The Comptroller's valuation guide explains that Tax Code Section 23.23 generally limits a homestead's appraised value increase to 10% a year, and only after the property has qualified for the homestead exemption in both the prior and current year.
- The trend shown in last year's bill. In 2026, a flat or falling appraisal came with a higher city rate, so a softer value on the appraisal notice didn't mean a smaller bill.
All of this is general information, not legal, tax or financial advice. Confirm the taxing units, exemptions and estimated taxes for a specific property with the appraisal district, the tax office or a qualified tax professional.
Quick Questions
When are 2026 property taxes due in McLennan County? The usual deadline is January 31. In 2027 that date falls on a Sunday, and the Comptroller's deadline calendar says a deadline that lands on a weekend is met by acting on the next business day, which is Monday, February 1, 2027.
Does Lorena's lower appraisal mean the city collects less? No. The city's total levy for 2026 is $1,278,513, up 5.22% from $1,215,056 in 2025.
Is the same thing happening elsewhere in the county? The Waco Tribune-Herald reported that Hewitt and McGregor also had taxable value declines of about 3% in 2026. Each city sets its own rate, so how that affects bills depends on what each council adopted.
If you're comparing a Lorena home inside the city limits with one just outside, or trying to figure out what a listing's tax line will look like once it's yours, I'm happy to go through the rate stack for that address with you. Vianey Suarez helps buyers and sellers across Lorena and Waco look at the full monthly cost before they make a decision. Let's Connect.
