Property Taxes in Texas

One of the most important things you can do as a homeowner is to understand how the process of real estate taxes work in Texas.

Your right as a homebuyer is the ability to protest the amount of tax you are being billed if you don’t agree with the official’s appraisal.

Here is a quick overview:

• Local officials will appraise your property and determine the value
• This value is translated into a tax which you are required to pay
• Most homebuyers pay their property taxes every month as a part of their mortgage payment.
• Every homeowner is given a detailed appraisal and tax statement from the city
• Property tax dollars are what supports services like schools, streets, lights, police, fire protection, etc
• Whoever is living on the property as of January 1st determines the responsible party for paying taxes.
• Tax statements are usually mailed out October 1 and homeowners have until January 31st of the following year to pay their taxes before any fees or penalties are imposed.

The city’s local appraisal review board will listen to your protest statements concerning the neighborhood, similar homes on your block, any exemptions you may be qualified for, etc. Your tax statement will include instructions on where and how you would begin the protest. Be sure to read all of the details as there are deadlines to meet and specific documentation that you must include along with your official protest.

Texas does not impose any state taxes for property owners; you are only responsible for local taxes. The appraisal of your property Is managed by the appraisal district; properties are usually appraised once every two years. The value of your home as of January 1 will be compared with other homes of similar size in your neighborhood that have recently sold. Remember, any home improvements you make count toward the appraisal - property taxes are based on the most current market value of your home.

Don’t forget

To look carefully at your appraisal statement, check to be sure the legal description of the property, the address and measurements are all accurate. The appraisal statement should also include any major property defects like a cracked foundation, major roof damage or plumbing, flooring, etc. If it is not listed then you should document the damage with photographs. This damage to your property would make a difference in its value if you were going to sell the property.

Bottom line is - Don’t pay taxes on a property that is appraised higher than its true value. If you don’t understand the way the statement was prepared – be sure to ask the district. They are there to help you and answer your questions.

Do not ignore your tax statement

If you are having problems paying your taxes, speak to your local district concerning state laws. Find out if you can pay in installments or partial payments. Ask what additional penalties or interest you will responsible for paying. If you have a disability or are over 65 you may be entitled to special exemptions so be sure to inquire. Delinquent Taxes will be imposed with a penalty and it will increase. There could also be attorney fees added, that is why it’s very important to understand your statement.

Military personnel may be entitled to a waiver of penalties and interest for delinquent taxes. You have 60 days from your discharge or upon your arrival to your state from active duty. Your local tax office will have additional information on this military exemption.

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