This guide is designed to help you understand the fundamentals of the property tax system in the Lone Star State. In Texas, we don’t have a state property tax. Instead, local governments set tax rates and collect property taxes to fund important services in your community. These services include schools, roads, police, and fire protection.
Our goal is to make sure you have all the information you need to navigate the property tax process. We’ll cover the key players involved, the main phases of the tax cycle, and your rights as a property owner. So, let’s get a better understanding of Texas property taxes together!
Below is a simplified description of the players with a role in administering the property tax system.
also referred to as the taxpayer.
responsible for appraising the total market value of property each year in the county.
hired by the Appraisal District Board of Directors to administer the appraisal district.
a board of local citizens that hears disagreements between property owners and the appraisal district in regards to the property’s taxability and value.
responsible for appraising the total market value of property each year.
school districts, counties, cities, junior colleges and special purpose districts
responsible for appraising the total market value of property each year.
keeps property tax assessments fair and accurate, while supporting local governments and taxpayers. PTAD created the summary of the property tax rights below.
1. You have the right to equal and uniform taxation.8
2. You have the right to ensure that your property is appraised uniformly with similar property in your county.
3. You have the right to have your property appraised according to generally accepted appraisal methods and techniques and other requirements of law.9
4. You have the right to receive exemptions or other tax relief for which you qualify and apply timely.10
5. You have the right to be notified of property value increases and exemption changes.11
6. You have the right to request and inspect non-confidential information used to appraise your property.12
7. You have the right to protest your property’s value and other appraisal matters to an appraisal review board composed of an impartial group of citizens in your community.13
8. You have the right to appeal the appraisal review board’s decision to district court in the county where the property is located.14
9. You have the right to fair treatment by the appraisal district, the appraisal review board and the tax assessor-collector.
10. You have the right to voice your opinions at open public meetings about proposed tax rates and ask questions of the governing body responsible for setting tax rates.15
11. You have the right to notice of estimated tax amounts.16
12. You have the right to petition certain local taxing units to call an election to limit a tax increase in certain circumstances.17
13. You have the right to receive a free copy of the Taxpayer Assistance Pamphlet published by the Texas Comptroller of Public Accounts prior to your protest before the appraisal review board.18
8 Tex. Const. art. VIII, §1(a)
9 Tex. Tax Code Ch. 23 and §23.01(b)
10 Tex. Const. art. VIII, §1(b), (1-b); Tex. Tax Code Ch. 11
11 Tex. Const. art. VIII, §21 and Tex. Tax Code §§11.43, 25.19, 25.192 and 25.193
12 Tex. Tax Code §25.195
13 Tex. Tax Code §41.41(a)
14 Tex. Tax Code §§42.01 and 42.21(a)
15 Tex. Educ. Code §44.004, Tex. Gov’t Code Ch. 551 and Tex. Tax Code §26.06
16 Tex. Tax Code §25.19
17 Tex. Tax Code §§26.07, 26.075 and 26.08 and Tex. Water Code §49.236
18 Tex. Tax Code §41.461
Hey there, Texas property owner! Let’s talk about the first step in your property tax journey: appraisal. Every year, your local appraisal district checks out your property to figure out how much it’s worth. They look at things like your home’s size, age, and condition. They also compare it to similar properties that have sold recently. This helps them determine your property’s market value. If you think they got it wrong, don’t worry! You can challenge their decision. The appraisal district will send you a notice with your property’s value. Make sure to review it carefully. If you disagree, you can file a protest. Remember, the goal is to ensure your property’s value is fair and accurate. This value will be used to calculate your taxes later on.
Next up is equalization – it’s all about fairness! After the appraisal, your local Appraisal Review Board (ARB) steps in. Their job is to make sure everyone’s property is valued fairly. They review protests from property owners who disagree with their appraisals. The ARB listens to both you and the appraisal district. They then decide if any changes need to be made. This process helps ensure that similar properties have similar values. It’s like making sure everyone’s playing by the same rules. The ARB works hard to balance things out. They want to make sure no one’s paying more than their fair share. Equalization is a crucial step in keeping the property tax system fair for all Texans.
Now, let’s talk about assessment – this is where the math happens! Once your property’s value is set, it’s time to figure out your tax bill. Each taxing unit in your area decides how much money they need. They then set a tax rate based on the total value of all properties. Your assessed value might be lower than your appraised value due to exemptions. Homestead exemptions, for example, can reduce your taxable value. The tax assessor multiplies your assessed value by the tax rate. This gives you the amount of taxes you owe. It’s important to note that different properties might have different tax rates. The assessment phase ensures that everyone contributes their fair share to local services.
Last but not least, we have collection – it’s time to pay up! After your tax bill is calculated, the tax collector takes over. They’ll send you a statement showing how much you owe. You usually have until January 31st of the following year to pay. Some folks choose to pay in installments throughout the year. Others might qualify for payment plans if they’re having trouble paying. If you don’t pay on time, you might face penalties and interest. The money collected goes to fund important local services. These include schools, roads, police, and fire departments. Remember, paying your property taxes on time helps keep your community running smoothly. It’s all part of being a responsible property owner in the Lone Star State!
After exploring the four key phases of the Texas property tax system, you might have questions about how these processes affect you directly. That’s why we’ve created a comprehensive Tax Basics category on our blog. There, you’ll find in-depth articles covering everything from understanding your appraisal notice to tips for protesting your property value. We also offer practical advice on exemptions, payment plans, and how to navigate the ARB hearing process. Whether you’re a new homeowner or a long-time Texas resident, our Tax Basics blog posts provide valuable insights to help you make informed decisions about your property taxes. Don’t miss out on this wealth of information – head over to our blog now and empower yourself with knowledge that could save you money and stress!
