Posted by Roxanne DeBerry on Thursday, April 17th, 2025 5:07pm.
Property taxes in Texas can be a significant part of homeownership, and understanding how they work is crucial. Unlike some states, Texas doesn't have a state income tax, which means local governments rely heavily on property taxes to fund essential services. Here's a breakdown to help you navigate the system:
How Property Taxes Work in Texas
Appraised Value: Each county's appraisal district determines the value of your property. This valuation is a key factor in calculating your property taxes.
Taxing Entities: Your property is taxed by various local entities, which may include the city, county, school district, and special districts. Each sets its own tax rate.
Calculation: Property taxes are calculated by multiplying the appraised value of your property by the combined tax rates of all the taxing entities that serve your area.
Exemptions: You can reduce your tax burden through exemptions. The most common is the homestead exemption, available for your primary residence. Others include exemptions for those over 65, disabled individuals, and veterans.
Key Factors Affecting Your Property Taxes
Property Value: Changes in your property's value directly affect your taxes.
Tax Rates: Local government budgets and voter decisions influence tax rates.
Exemptions: Understanding and applying for available exemptions can lead to substantial savings.
Important Notes for Texas Homeowners
Property values are reassessed annually.
Tax rates can vary significantly between counties.
Filing for exemptions is crucial to reducing your tax burden.
Understanding Texas property taxes is essential for all homeowners in the state. If you have any questions about your property taxes, contact your local appraisal district or a qualified real estate professional. Need help? Contact The DeBerry Team of KW Legacy at 214676-8040.