A Guide to Understanding Property Taxes in Texas

Property taxes are a significant part of life for Texas homeowners. Here's a breakdown of how they work:

1. No State Property Tax:

• Texas does not have a state property tax. Instead, local governments like counties, cities, and school districts collect these taxes to fund essential services.

2. How Property Taxes are Calculated:

• Appraisal: Each year, an appraisal district in your county determines the market value of your property.
• Tax Rate: Local taxing units set their tax rates based on their budget needs.
• Calculation: Your property tax bill is calculated by multiplying your property's appraised value (minus any exemptions) by the combined tax rates of all the taxing units that serve your property.

3. Key Players in the Process:

• Appraisal District: Appraises property values and handles exemptions.
• Appraisal Review Board (ARB): Hears disputes between property owners and the appraisal district about property values.
• Taxing Units: Set tax rates and collect taxes (often through the county tax assessor-collector).
• Tax Assessor-Collector: Collects property taxes and distributes the funds to the taxing units.

4. Important Considerations:

• Exemptions: Texas offers various property tax exemptions, including the homestead exemption for primary residences, and exemptions for those who are 65 or older or disabled. These exemptions can significantly reduce your tax burden.
• Truth in Taxation: Texas law requires taxing units to be transparent about proposed tax rates and hold public hearings. This allows taxpayers to voice their opinions and potentially limit tax increases.
• Property Tax Transparency: The state provides resources to help Texans understand their property taxes, including information on appraisal districts, taxing units, and tax rates.

5. Resources:

• Texas Comptroller of Public Accounts: Provides information on the Texas property tax system.
• Your County Appraisal District: Offers details on property appraisals and exemptions in your county.
• Your Local Taxing Units: Can provide information on their tax rates and budgets.

Remember:

• Property taxes are a crucial source of funding for local services in Texas.
• Understanding the process and utilizing available resources can help you manage your property tax obligations effectively.

Do you have any specific questions about property taxes in Texas? I can help you find more information on topics like:

• How to protest your property appraisal
• How to apply for exemptions
• Understanding tax rates in your area
• Payment options and deadlines

For further insights and updates, connect with us here at Revilo Real Estate and follow me on Instagram, Facebook and LinkedIn.