Texas is known for having some of the highest property tax rates in the nation. As a homeowner, it’s crucial to understand how your annual property tax bill is calculated and what factors influence the amount you owe. Here’s a breakdown of everything you need to know about Texas property tax bills in 2024.
How Property Taxes are Calculated
Your Texas property tax bill is based primarily on two key factors:
- Appraised Value: This is the assessed value of your property determined by your local appraisal district. Appraisers estimate your home’s market value by considering recent sales of comparable properties, square footage, age, condition and any renovations.[4]
- Tax Rates: These are set annually by local taxing entities like your county, city, school district and any special districts. The rates are expressed as a percentage and vary across Texas.[5]
To calculate your tax bill, the appraisal district first applies any exemptions you qualify for to reduce your home’s taxable value. They then multiply this adjusted taxable value by the combined tax rates of all applicable taxing units.[5]
New for 2024: The “Circuit Breaker” Tax Cut
In 2023, Texas lawmakers passed legislation capping how much a home’s taxable value can increase year-over-year at 5% for properties under $5 million in value. This “circuit breaker” provision could lead to lower tax bills for many homeowners in 2024 compared to previous years.[4][5]
Don’t Forget Key Property Tax Dates
It’s important to mark these key Texas property tax dates:
- April 1st: This is the assessment date when appraisal districts estimate your home’s market value.
- May 1st: Appraisal notices are typically mailed out by this date with your home’s assessed value.
- May 15th – June 30th: This is the protest period when you can dispute your property’s appraised value.
- October 1st: Tax bills are usually mailed out around this date.
- January 31st: This is the due date for paying your property taxes before late fees apply.[1][3]
How to Reduce Your Tax Burden
There are a few key ways to potentially lower your Texas property tax bill:
- File for Exemptions: Be sure to apply for any homestead, over-65, disability or other exemptions you qualify for to reduce your taxable value.[2]
- Protest Appraisal: If you believe your home’s assessed value is too high, you can formally protest during the allowed window.[1]
- Check Tax Rates: Research the proposed rates from local taxing units and attend public hearings to voice any concerns.[2]
By understanding how property taxes work in Texas and taking advantage of any available exemptions or protest options, you can ensure you don’t overpay. Stay informed and make your voice heard to keep your tax bill as low as possible.[1][2][3][4][5]
Citations:
[1] https://texasprotax.com/blogs/
[2] https://www.texas.gov/living-in-texas/property-tax-transparency/
[3] https://johnsonandstarr.com/texas-property-tax-blog/
[4] https://www.texastribune.org/2024/04/26/texas-property-tax-cuts-analysis/
[5] https://www.hegwoodgroup.com/how-to-calculate-texas-property-tax-in-2024/