Property Tax in Texas Guide

For homeowners living in Texas, you must know the basics of selling a house. One of the most important things to remember is that Texas offers many other taxes in terms of state property tax and the taxes involved with selling a house. If you understand the basics of property tax records in Texas and the Texas property tax exemptions, you can avoid unnecessary payments. 

Let’s see the basics of property taxes in Texas, who has to pay them, and how much you will have to pay.

property tax in Texas

Property Taxes in Texas

Okay, we get it – nobody wants to pay taxes. But taxes can help everyone have a higher quality of life. Taxpayers help our schools, take care of local parks, and improve the quality of our roads and transportation system. Although higher property taxes and state taxes may seem like a buzzkill, they can help the local governments and the state. 

In Texas, you can calculate property taxes by the county in which you live or own property. The average property tax value in Texas comes to 1.8% — which is higher than the national average. Although this is disappointing, the property taxes indicate the desired quality of living and the prevalence of houses on the market. 

For homeowners who want to get an estimate of how much they might pay, consider this example — if your house is valued at $200K, property taxes for the entire year come to $3,600. 

Even though this may seem steep, this is usually less than an employee’s wages per month. Is this too much for you to pay per year? We understand — we buy homes in Jacksonville can take the property off your hands. 

But who decides how much you pay? In all counties in Texas, an appraiser will come and provide an estimate for your home’s value. This appraised value comes from a government worker, known as an assessor, who will compare your house to the value of the area, the other homes, and the prices that other properties in the area just sold for. 

If you want to avoid the highest taxes in the state, we recommend checking out Borden, Ward, Glasscock, Kenedy, or Crockett, all of which have the lowest property taxes and jurisdictions in the state — every single one of these county appraisal districts areas comes in below .8% — which is way below the national average! 

You can even use companies that buy houses in Marshall to help you get a great deal on your house sale! 

When you take Texas as a whole, many characteristics come into play. Sure, the property tax is higher than in many other states, but, homeowners can reap the benefits of the desired area, the favorable quality of life, and the nice neighborhoods. 

Compared to the states with the lowest property taxes — with Hawaii coming in at just .28% — Texas does not have a state income tax, and they have a lower median home value.

Many factors come into play when a homeowner is assessing their house and their tax payments, so make sure you cover all of your bases before complaining about the high property taxes in Texas. It could be worse — you could live in New Jersey with a property tax of 2.49%! 

Need to sell your house fast? Tired of paying high property taxes? Use Cash home buyers in Texas to take your house off the market in just a few days. 

property tax exemptions

Texas Property Tax Exemptions

As a whole, Texas has no state tax. This means that the higher property taxes are eclipsed by the lack of state taxes that residents will have to pay. Therefore, homeowners can and are paying two taxes that can wreak havoc on their wallets. Plus, homeowners can learn the basics of selling a house without a realtor taking their house off the market. 

Furthermore, some homeowners can qualify for property tax exemptions. A property tax exemption refers to the partial or total removal of appraised property values used to determine the property tax rate. In this case, the value of the property will be excluded from taxation. 

According to the Residence Homestead Tax Code, there are a few general property tax exemptions:

  • Uninhabitable residence
  • Temporary exemption due to disaster damage
  • Manufactured or cooperative housing
  • Senior citizen 
  • Disabled citizen
  • General residence homestead
  • Homestead Exemption In Texas

Homestead Exemption in Texas

The General Residence Homestead exemption allows a $25K exemption to residents who live in school districts. In some districts, this exemption will increase to $44K in the upcoming year. 

Effective at the beginning of 2022, Texas property law changed its tax exemption rules and included a new property tax bill regarding real estate, sales tax, and the tax burden. 

This new change benefited new property owners, as it allowed them to qualify for an exemption for part of the year. Those who qualify for this exemption cannot own the property — instead, they must be a corporation or business entity that solely utilizes the property. 

Property Tax Exemption For Seniors And The Disabled People

According to the Tax Code Section 11.13, seniors, adults over the age of 65, can qualify for an additional $10K off of their residence homestead exemption if they live in a school district. Furthermore, Tax Code Section 11.13 allows a separate residences homestead exemption greater than $3,000 for any taxable unit. 

For senior citizens to qualify for property tax exemptions, they must live in the home and meet the minimum age requirements. If the owner of the house passes away, the spouse can be eligible for the exemption if they are over the age of 55. 

These codes are also applicable to disabled individuals in the state of Texas. If a person is 65 or older and also disabled, it doesn’t make them automatically eligible for exemptions. The individual will have to choose which exemption meets their criteria, deciding between the senior exemption or the disabled exemption. 

Property Tax Exemption For Disabled Veterans

Various Tax Code Sections cover the tax exemption for disabled veterans and surviving spouses in the state of Texas:

  • Tax Code 11.131 — A disabled veteran who receives 100% disability compensation due to a service-related injury can file for a total property tax exemption. This exemption also works for spouses of disabled veterans if the spouse is not remarried.
  • Tax Code 11.132 — This code provides a partial exemption for residence homesteads currently used by disabled veterans organizations. 
  • Tax Code 11.133 — A surviving spouse of a deceased veteran can obtain a full property tax exemption on the taxable value of their home.
  • Tax Code 11.22 — Veterans can qualify for partial exemptions depending on their specific circumstances.

Conclusion

Homeowners who are curious about how much they may have to pay can use the Texas property tax calculator to determine their monthly payments. Compared to other states in the US, Texas has very high property taxes — but this is counteracted by the lack of state tax, helping reduce overall payments by homeowners and state residents. 

Homeowners should look into the local taxes by researching the Texas property tax code, taxing entities, and the highest property taxes within the state. 

Find out how you can make money by getting one of the most expensive home sales in TX without paying hefty taxes! Your wallet and your credit will thank you.  

Not sure how to sell your house in Dallas? Are you confused about your property taxes in Houston? Do you need some more information on property taxes and selling a house in Texas? Check out Texas Land and Home to find out more. 

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