Understanding Texas Property Taxes

Texas Real Estate Taxes- Property taxes are taxes that are assessed, collected, and used locally. Texas law establishes the process followed by local officials in determining the value for a property, ensuring that values are equal and uniform, setting tax rates and collecting taxes. The county appraisal district appraises the value of your property each year. As a property owner, you are a taxpayer; you pay your property taxes to the local county tax assessor-collector, who then distributes funds to the local taxing units. The taxing units set a budget and decide how much of the tax revenue should be allocated towards public services. Then they spend the funds on things like schools, roads, hospitals, police departments, fire departments, and other public services and programs.

Texas has no state property tax. The Texas State Constitution informs state laws to authorize local Texas governments to collect property taxes. Title 1 of the Texas state property tax code lays out overarching rules that apply across the state, to protect the rights of property owners. There are five main rules; the first rule establishes that all taxation must be equal, which is achievable by way of uniform appraisal. The second rule addresses the taxation of property in Texas based on the current market value (exceptions under the Texas Constitution notwithstanding). Third, the law states that a single appraised value must be assessed for each property in a county; while the fourth rule notes that all property is taxable unless otherwise exempted by federal or state law. The fifth rule states that Texas property owners have a right to reasonable notice of increases in the appraised value of their property.

Your Texas property taxes are due annually on the closing date of the tax year, January 31st. The amount you owe each year depends on the assessed value of your property. If you do not pay your property taxes on time, you will be subject to financial penalties that begin accruing on February 1st (or the first business day of the month). Your local tax collection office can provide the exact details of the property tax payment options available in your county, and help you determine if you qualify under the tax code to receive a property tax exemption in the form of a deferral, a discount, a payment installment plan, or a split/partial payment.
If you are interested in purchasing a new property, you should learn about what it means to be a property owner. If you need guidance or advice, consulting a professional real estate agent is the best course of action you can take. To discuss the varying aspects of owning property, including learning more about property taxes, WEICHERT, REALTORS® – The Place of Houses is the professional real estate team to call. This Corpus Christi, Texas-based company employs experienced, dedicated real estate specialists who offer exceptional support to their clients. Contact WEICHERT, REALTORS® – The Place of Houses any day or time, so the expert real estate team can help you to find your new home and understand your role as a property owner.Written by: Erika Mehlhaff