Calculating Your Property Tax

May 6, 2010 by · Leave a Comment 

People often ask us how the property tax in Texas is figured.   The county establishes a property value on January 1st . Assessments are mailed to property owners in April or May with a letter outlining the appeal process. Each tax district decides on a tax rate based on the revenue they need to operate, and those rates are combined into one over all tax rate. Because we have no state income tax in Texas, we fund many things from schools to city operations through property tax revenue.  The formula is (Value X Rate = Property Tax).  For example, if the tax rate is 2.5% and the value of your property is $200,000, then the tax for the property will be $5000.

There are also some tax exemptions that apply that can reduce the amount of tax that you pay. If you lived in your home on January 1st as your primary residence, you can apply for a Homestead Exemption. If you are 65 or older, you can also apply for another exemption. Keeping up with the value the county places on your home each year is important. You have the right to protest the value, and we have helped many friends and clients do just that over the years as a complimentary service. Even if you are over 65 years old, and your taxes have been frozen, the county still calculates a value and that value can increase each year. If you don’t protest that value, it will continue to rise as values increase.

Share your property tax stories, comments and questions with us in the comment section below.

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