Have you noticed your property tax bill creeping higher every year? Texas homeowners have been hit hard by rising property taxes, with some counties seeing annual increases of around 10-20% due to property value jumps and budget demands. Let’s break down why taxes are going up and what you can do to keep costs in check.
Why Property Taxes Are Skyrocketing in Texas
1. Real Estate Market Boom
Texas has seen a surge in property values, with some areas experiencing year-over-year growth of 20% or more. As home values increase, so do assessed property values, directly impacting your tax bill. It’s a double-edged sword—while your home’s market value is increasing, so is the taxable amount.
2. Funding Local Services
Property taxes are the primary funding source for schools, roads, and public safety. In fast-growing Texas cities, rising populations create more demand for services, which requires more tax revenue. Local governments often adjust tax rates to keep up, which leads to higher bills for homeowners.
3. Adjustments by Local Governments
Even if your county’s base tax rate doesn’t increase, the rising property value means you’re paying more. Some municipalities also raise tax rates to meet budget goals. Texas law caps annual increases at 10% for properties with a homestead exemption, but without it, you could face an even bigger hike.
4. State-Level Caps and Policies
Texas has introduced property tax caps to limit how much local governments can increase taxes. However, these caps sometimes encourage municipalities to adjust their rates to the maximum allowed to ensure consistent revenue. Ironically, these protections can lead to higher taxes in some cases.
What You Can Do to Manage Rising Property Taxes
Rising property taxes can feel overwhelming, but there are several strategies you can take to bring down your bill and get the most out of Texas’ tax exemptions.
1. File for a Homestead Exemption
Homestead exemptions are the best starting point to reduce your property tax liability. Available to Texas residents in their primary residence, this exemption caps your assessed value growth at 10% per year and provides an additional $25,000 off your home’s value for school taxes. If you’re over 65 or disabled, additional exemptions apply. Filing is simple and can usually be done online through your local county appraisal district website.
2. Challenge Your Property Appraisal
If you think your home’s value has been assessed too high, consider filing a protest with your local appraisal district. This process allows you to present evidence—like comparable sales data—to show that your home’s assessed value should be lower. Property tax appeals can save you significant amounts if you successfully reduce your property’s taxable value.
3. Stay Active in Local Government Decisions
Local government decisions have a big impact on property taxes, and your voice matters. Attending city council and county meetings, staying informed on budget proposals, and voting in local elections all contribute to keeping tax rates in check. Many residents overlook this step, but your participation can help shape tax policy in your area.
Common Property Tax Exemptions in Texas
- Homestead Exemption: Reduces taxable home value by $25,000 for primary residences.
- Over 65 or Disabled Exemptions: An additional $10,000 off your home’s taxable value for school district taxes.
- Disabled Veteran Exemption: For veterans with disabilities, based on their disability rating, and even full exemptions for those with a 100% disability rating.
By filing for all eligible exemptions, you ensure you’re not paying more than necessary.
3 Key Strategies for Lowering Your Property Taxes
- Know Your Home’s Market Value: Real estate values fluctuate, and it’s worth staying up-to-date on your neighborhood’s trends. If market values have dropped, appeal your assessment with evidence.
- File Early for Exemptions: Most exemptions, including the homestead, must be filed by April 30. Missing this deadline means you’ll wait until the next tax cycle to benefit, so set a reminder.
- Keep track of local tax rate proposals: Tax rates are set locally, and knowing what’s coming up in the next council meeting can help you advocate for fair rates or budget transparency.
Is Your Property Tax Bill Higher Than It Should Be?
To check if you’re overpaying on property taxes, start by comparing your property’s assessed value with recent sales data in your area. If homes like yours are selling for less than your assessed value, it’s time to appeal. Also, ensure all exemptions you’re eligible for are applied correctly—it’s easy to miss out on savings if you haven’t updated your exemption status.
Key Takeaways: Staying Ahead of Property Taxes with Abode
Property taxes are likely to continue rising as Texas grows, but that doesn’t mean you’re stuck with a sky-high bill. Taking proactive steps like filing for exemptions, attending local budget meetings, and challenging over-assessments are essential for keeping costs in check. At Abode, we can help you navigate Texas property taxes, from applying for exemptions to successfully filing appeals. Reach out to us to maximize your savings and make sure you’re not overpaying.
Consider Working with Abode
Navigating the property tax appeal process can feel overwhelming, especially if it’s your first time. That’s where Abode comes in. Our team of experts is here to guide you every step of the way, from gathering the right documentation to submitting a compelling case. We make it simple for you to potentially save hundreds, if not thousands, on your property taxes every year. Don’t leave money on the table! Visit Abode today to learn more about how we can help you navigate the property tax appeal process.