In Texas, your property tax rate is the sum of the tax rates from more than one jurisdiction. How many jurisdictions do you have to account for, though?
I have the privilege of working with many relocation clients in the DFW area, and many of them ask me about how property taxes are calculated here in Texas. Today I want to explain this process to help you get a better understanding of it.
Texas has no state income tax, so property taxes are the largest source of funding for local services. Property taxes help pay for public schools, city streets, county roads, police, fire protection, and many other services.
Your property tax rate is the sum of the tax rates from more than one jurisdiction, such as the county, state, and local school district. Your property might also be subject to additional taxes such as a community college tax or a special area improvement district tax. Tax rates are subject to annual change based the budgets that counties, cities, and schools set in place for that year.
“
”
For instance, if you live in Frisco, your tax rate is the sum of the city of Frisco’s tax rate plus Denton or Collin County’s tax rate plus your school district’s tax rate. If you happen to be in Collin County, you will have an addition tax rate for Collin County Community College.
Tax rates are subject to annual change based on a few different budgets.
”
I know that sounds a bit complicated, but that’s where your favorite Realtor comes to the rescue. If you would like know the exact property tax rate for your home or another property you’re interested in, you can visit your county’s appraisal district website or just ask me!
Now that we got your property tax rate somewhat figured out, what about your assessed property value (e.g. the amount you pay on property taxes on minus all available exemptions)? That tends to be a rather complicated subject as well since the assessed value of your home doesn't necessarily match its appraised value or how much you paid for the house.
Stay tuned for my next video where I will discuss the difference between the assessed value, the appraised value, and market value of your home. I will also cover all the exemptions that are available to you and how they decrease your tax bill.
In the meantime, if you or someone you know is thinking of buying or selling real estate, please feel free to give me a call or shoot me an email. I would be honored to be of service.
