Nederland Still Has Mid-County's Lowest City Tax Rate. This Fall, It Stopped Falling.

Nederland's city tax rate for 2026 is 46.6 cents per $100 of value, up from 45.1 cents. City Council passed it 4 to 1 in September, with Councilmember Curtis Stratton voting no. That's a 3.33% rate increase. On the average homestead in town, though, the city's own notice shows the bill going up 6.30%. The city as a whole only collects 2.98% more. Homeowners are carrying more of the increase than the town is. If you're weighing Nederland against Port Neches or Groves, that's worth understanding before you compare tax lines on listings.

Three Numbers From the City's Notice

Every Texas taxing unit that raises its rate past a certain point has to publish a notice comparing last year's numbers with this year's. Nederland's Notice of Public Hearing on Tax Increase went out in August ahead of a September 14 hearing at City Hall, 207 N. 12th St. Here's the table at the bottom of it:

The homestead bill went up for two reasons at once. The rate rose, and the average homestead's taxable value rose too. Put a 3.33% rate increase on top of a 2.87% value increase and you get 6.30%. The September coverage in The Examiner put the increase at about $22 a year on a $200,000 property, measured from a prior rate of 45.5 cents. The county tax office lists the 2025 rate at 45.1 cents. Using that figure, a $200,000 home whose value didn't change would pay about $30 more. The average homestead's value did change, and that's how you get to $64.10.

Why Homesteads Outran the Levy

Divide the levy by the rate and you get the total taxable value the city is working with. For 2025, $8,457,569 at 45.1 cents comes to roughly $1.875 billion. For 2026, $8,709,315 at 46.6 cents comes to about $1.869 billion. The Jefferson Central Appraisal District's certified roll for the City of Nederland, dated July 20, 2026, lists net taxable value of $1,868,951,716.

So the city's overall tax base was basically flat, even down a hair. At the same time, the average homestead's taxable value rose almost 3%. When one slice of the base grows and the whole doesn't, that slice pays a bigger share of whatever the city collects. A rate increase makes that shift bigger.

There's not a lot of new construction coming in to spread the load, either. Nederland ISD covers more ground than the city limits, so its numbers aren't a perfect match. Still, the district's August tax notice shows taxable value from new property dropping from $143.9 million the year before to $24.5 million this year. With fewer new rooftops and new businesses joining the roll, the existing homes pick up more of the cost of running the city.

The Low Rate Has a History

Nederland's city rate has come down a long way. It was 60.96 cents in 2018, 57.97 cents in 2020, and 48.11 cents in 2022. It bottomed out at 42.68 cents in 2024, then rose to 45.1 cents in 2025. The 2026 rate makes two increases in a row after six years of cuts.

Even after those two increases, the gap with its Mid-County neighbors is still wide:

Port Neches adopted its rate unanimously on August 17, according to the council minutes. Groves adopted its rate the same day on a 4 to 1 vote, according to the September 14 council packet. Both cities' rates went up from 2025. Mayor Jeff Darby told The Examiner that Nederland's rate is still 15 to 20 cents lower than Beaumont, Port Arthur, Groves, and Port Neches. Against Groves the numbers back that up, and against Port Neches the gap is even wider. Beaumont's administration proposed 68.29 cents for 2026 in its budget message. That's a proposal, and I couldn't confirm the adopted figure.

At the same $232,256 taxable value, the city line would come to about $1,082 in Nederland, $1,495 in Groves, and $1,695 in Port Neches. That's simple rate arithmetic. Each city's own exemptions would move those numbers some.

What the Money Is Going Toward

The mayor's explanation was specific. "The cost of doing business continues to rise faster than the official inflation rate," Darby told The Examiner. He said construction materials cost about 40% more than five years ago. He also said the city has to replace a 2001 fire engine for $1.3 million, and with about a three-year backlog, it has to order now. Earlier budget coverage reported that the city's water distribution system was last upgraded in 1971, and that city employees are getting a 3% raise.

You can see that backlog street by street in the city's July 2026 infrastructure update:

• Avenue D, between South 20th and South 21st: an old 6-inch sewer main is being replaced with 8-inch PVC. King Solution Services won the job with a low bid of $87,430.50, and notice to proceed was scheduled for August.
• Allen Meadows, at Avenue N and 17th Street: drainage design is done, but the project is waiting on easements and outside approvals before it can go to bid.
• Shelly Drive: drainage engineering is 75% complete and needs easement coordination with neighboring owners.
• Asphalt and concrete street repairs: both sets of plans are at 95% design, with bid dates still to be set.

"The citizens want things fixed," Darby said. "We listened." If a house you're considering sits on one of those streets, the report shows where each project stands.

The Rest of the Bill Mostly Went the Other Way

The city is one of several lines on a Nederland tax bill, and this year most of the others held steady or dropped. Jefferson County Drainage District No. 7 cut its total rate to $0.287328 from $0.292525. Jefferson County kept its rate at $0.357 when commissioners voted September 8. The Port of Port Arthur proposed $0.169028, down from $0.186445. The Sabine-Neches Navigation District proposed holding at $0.088. Those last two figures are proposals, and I couldn't confirm the final votes.

The school district is the other line moving up, and the decision on it goes to voters. Nederland ISD's rate went from about 0.899 for 2025-26 to 0.928 for 2026-27, according to 12NewsNow. Proposition A on the November 3 ballot reads, "THIS IS A TAX INCREASE." It asks voters to ratify a rate of $0.928409. Per the ballot language, that would raise maintenance and operations revenue 15.33%, or $3,409,870.07, over the year before. It's the district's first voter-approval tax rate election. Superintendent Steven Beagle told 12NewsNow the district passed a $1 million deficit budget this year. The district estimates a home valued at $225,000 would pay about $60 more a year, or roughly $4.99 a month. The district's Prop A page says the measure would bring in $4.1 million in new funding this fiscal year. Early voting runs October 19 through 30. The early voting site is the Marion & Ed Hughes Public Library, 2712 Nederland Ave.

Put together, two of the lines on a Nederland homestead's bill are going up this year, and both are pulling from a tax base where homes are a growing share of the value.

A Few Questions Buyers Ask

Does the $64.10 figure apply to every house in town? No. It's the city's number for the average homestead, at a taxable value of $232,256. Your own city tax is the rate times your taxable value divided by 100, the formula printed right on the notice.

Do over-65 or disabled homeowners see the school increase? According to 12NewsNow, qualifying senior and disabled homeowners with an approved exemption may not see a school tax increase, because of the existing tax ceiling on their homestead. A tax professional or the appraisal district can tell you how that works for a specific property.

Who can answer questions about a specific property's city taxes? The city's notice lists its tax assessor at 409-723-1509.

If you're comparing Nederland, Port Neches, and Groves and want to go through the tax lines on a few real addresses side by side, I'm happy to sit down and do that with you. I can help you pull the notices and work through the numbers so you know what you're looking at. Beth Westbrook is just a call away. Let's Connect.

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