Houston declined Tate's team option worth $1.8 million, which made him a free agent, and have him now locked up through the 2024-2025 season.
Tate, 26, went undrafted out of Ohio State after his senior year in 2018 and played in Belgium and Australia before signing a deal with the Rockets in 2020.
He quickly made his mark, earning All-Rookie honors in 2020-21. Tate followed that up with another impressive campaign last season, averaging nearly 12 points, 5.4 rebounds and 2.8 assists while shooting just under 50% from the field and 31% from 3.
Tate's calling card, however, is his defense. Tasked with playing a good amount of his minutes at power forward despite his 6-foot-4 frame, Tate has the strength and skill set to guard multiple positions.
The Athletic first reported Tate's deal.