What are the Property Tax Rates in Texas?

Texas has one of the higher property tax rates in the nation when compared to other states, and only a handful of other states have tax rates exceeding the property tax rates in Texas. For 2015, the median yearly property tax in Texas was $2,275 with a median home value of $125,800. That averages out to a 1.81% tax rate based upon the property’s fair market value as assessed by the local government.

Does Texas Have the Highest Property Taxes in the Country?

However, Texas doesn’t collect state income tax from its residents, and there are no property taxes associated with vehicle ownership. With a nationwide average tax bill right around $2,000, Texans often pay a higher amount than residents in other states. However, the average in Texas is nowhere near the average in the most expensive state for property taxes in the country, which is New Jersey.

Residents in The Garden State pay an average exceeding $6,500 every year for their property taxes and New Jersey residents also pay income taxes and sales taxes. If you’d like to know where people pay the lowest property taxes in terms of the rates as a percentage of home values, residents in Alabama, Hawaii, and Louisiana have the lowest rates based on median home value.

Where are Texas Property Taxes Highest and Lowest?

Property taxes differ across the state, so someone in Dallas might not pay the same as someone in Corpus Christie. The highest property tax rates are levied on homeowners in King County, which is east of Lubbock. Taxpayers in King County paid an average of $5,066 a year for their yearly property taxes.

Meanwhile, residents in Terrell County, which sits along the Texas-Mexico border northeast of Big Bend paid the lowest tax rates with an average tax of $285 for the year. On average, King County residents paid approximately 1.56% of their home value in taxes each year while residents in Terrell County paid an average of 0.67% of their home value in taxes.

The median property taxes in selected counties around Texas:

  • Dallas County: $2,827
  • Tarrant County: $3,193
  • Harris County: $3,040
  • Bexar County: $2,484
  • Travis County: $3,972

It’s important to have an idea of the local rates you’ll pay for your home’s property taxes before they’re actually due so that you aren’t caught unawares when the bill arrives in the mail. Although there are opportunities to file a property tax appeal for the assessed value of your property, the tax bill shouldn’t come as a surprise.

How Does Texas Collect its Property Taxes?

Texas doesn’t standardize its methods of collection or its tax rates, so each county handles its own assessments and collection efforts. Property taxes are a county-level concern, so it’s not possible to label Texas with a single, overall tax rate.

Because there is the potential for fees and other costs associated with paying tax bills late, homeowners should seek help from a professional offering property tax help at the earliest sign of difficulty paying or when an assessment seems incorrect.

Did You Know? The Texas Property Tax Code is more than 350 pages – and that’s just for property taxes – so it’s important to rely on property tax advisors when you have questions about your Texas property taxes.

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