Taxes and Incentives

Hondo offers a business-friendly tax environment that keeps your project competitive and cost-effective. Local rates are in line with the region and support long-term growth.

Hondo’s current tax rates include: 

• City of Hondo: $0.48 per $100
• Hondo ISD: $0.9269 per $100
• Medina County: $0.619792 per $100
• Hospital Special District: $0.0929 per $100

These rates are consistent with surrounding communities and do not pose a barrier to business investment.

Hondo evaluates tax abatements on a case-by-case basis for businesses looking to locate or expand in the city. Once a company formally commits to investment, Hondo may designate the site as an Enterprise Zone and Freeport Zone, providing access to valuable property tax exemptions and state-level funding opportunities.

The Hondo Economic Development Corporation (HEDC) is your primary point of contact for local, county, and state incentives. HEDC works directly with businesses to streamline permitting, reduce red tape, and support successful relocation or expansion in Hondo.

Incentives are tailored based on project type, job creation, wage levels, and expected community impact. Whether you’re launching a new operation or expanding an existing one, Hondo is ready to help you succeed. Contact City Manager John Naron at 830-426-3378 or visit his page.

• Real Estate and Infrastructure Investments
• Type B Economic Development Sales Tax
• Capital Investment Reimbursement Grants, Including Building Fees and Permits
• Debt Financing

Tax Increment Financing Act
Tax increment financing is a tool that local governments can use to publicly finance needed improvements to infrastructure and buildings within a designated area known as a reinvestment zone. The cost of improvements to the reinvestment zone is repaid by the future tax revenues of each taxing unit that levies taxes against the property. Each taxing unit can choose to dedicate all, a portion of, or none of the tax revenue gained as a result of improvements within the reinvestment zone. These zones are commonly referred to as either a tax increment financing (TIF) zone or a tax increment reinvestment zone (TIRZ).

Texas Local Government Code
This Local Government Code authorizes muniservices at little or no cost.

Façade Improvement Grant
Matching grants available to enhance the exterior of commercial properties within city limits. Program Details

P.A.C.E. Financing
Property Assessed Clean Energy (PACE) financing is available to support water conservation, energy efficiency, and renewable energy projects. Check Eligibility

Skills Development Fund
The Skills Development Fund is Texas' premier job-training program providing local customized training opportunities for Texas businesses and workers to increase skill levels and wages of the Texas workforce.
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Skills for Small Business
This program supports businesses with fewer than 100 employees, emphasizes training for new workers, and helps upgrade the skills of incumbent workers.
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Foreign Trade Zone
In the United States, foreign trade zones (FTZs) are the domestic equivalents of international "free trade zones," intended to encourage healthy competition with foreign businesses. These zones directly help U.S. companies who either import products or components from foreign countries by reducing, deferring, or eliminating duties and by allowing for greater supply chain efficiency.
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Eb-5 Visa Program
Texas Growth Fund provides immigrant investors with real estate investment opportunities that comply with the United States Citizenship and Immigration Service's EB-5 Visa Program.
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Historic Preservation Tax Credits
State and federal programs provide tax relief for the rehabilitation of historic commercial properties. Apply Here