Preliminary property values in Hays County increased by 9.69% in 2026, reaching $76.75 billion, as commercial development drove most of the growth, according to data released by the Hays Central Appraisal District. The district also stated that the growth “aligns with the growth in population to over 300,000.”
The increase is largely driven by commercial and multifamily housing growth, while residential property values have generally remained flat.
There were $1.27 billion in new improvements added as of Jan. 1, including 3,294 new residential structures, 84 new commercial buildings and 373 enhancements to existing properties.
Commercial and industrial property values saw the largest gains, increasing 24% year over year to $7.47 billion. Multifamily residential properties also saw significant growth, rising 17% from $4.05 billion in 2025 to $4.76 billion in 2026.
Most single-family residential market areas remained relatively flat compared to the previous year, with slightly higher increases in rural and higher-value markets.
Market value reflects what a home would likely sell for on the open market, while taxable value is the portion used to calculate a property owner’s tax bill after exemptions and state limits are applied.
In Texas, taxable value increases for homesteaded properties are generally capped at 10% per year, meaning taxable values can continue to rise even when market values remain flat or decline.
The most notable shift in the data is the decrease in residential market value in Kyle. The city’s average residential market value decreased from $314,965 to $306,952, a drop of about 2.5%. Taxable values also declined, falling from $275,930 to $269,850.
In San Marcos, the average residential market value increased from $349,223 in 2025 to $352,399 in 2026, a gain of approximately 0.9%. Taxable values rose 1.6%, increasing from $312,314 to $317,191.
Within San Marcos CISD, average residential market values increased 3.2%, from $370,331 to $382,049. Taxable values rose about 5.5%, increasing from $236,743 to $249,871.
In Dripping Springs, average residential market values increased 3.2%, rising from $594,294 to $613,247. Taxable values saw a larger increase of 6.9%, climbing from $538,424 to $575,471.
Wimberley ISD recorded one of the largest increases among local taxing units. Average residential market values rose 4.8%, from $612,543 to $642,127, while taxable values increased approximately 11%, from $416,240 to $462,328.
Hays CISD saw a slight decline in market values, decreasing about 0.9% from $368,704 to $365,528. Despite that, taxable values increased approximately 2.1%, rising from $243,821 to $249,035.
An increase in appraised value does not necessarily mean an increase in taxes. Local taxing units, such as cities, counties and emergency service districts, set tax rates using appraised values to determine whether they will collect more or less total tax revenue.
Information regarding the tax rate setting process for each taxing unit will be available beginning Aug. 7 at hays.countytaxrates.com.
Hays Central Appraisal District scheduled the mailing of 2026 appraisal notices to most property owners for April 1. Property owners have the right to protest their property appraisals to the Hays County Appraisal Review Board by the filing deadline of May 15, or 30 days from the date a notice is mailed.
To file a protest, the district recommends the online filing portal available at www.hayscad.com. A protest can also be mailed to Hays Central Appraisal District, 21001 N I-35, Kyle, TX 78640 or dropped off in person at the same address.
