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property taxes
Welcome to our guide on Texas property taxes! Here, we break down how property taxes work in Texas, where rates are set by local entities like counties, cities, and school districts, based on your property’s appraised value.
With no state income tax, Texas relies heavily on property taxes, which have been rising steadily, putting a strain on homeowners and businesses alike.
Many Texans are struggling to keep up with these increases, driven by soaring property valuations and local budget demands. Fortunately, there are ways to fight back!
Explore options like homestead exemptions, tax protests, and senior or veteran discounts to lower your tax bill and take control of your finances.
HOW ARE YOUR PROPERTY TAXES CALCULATED?
In Texas, property taxes are calculated based on the appraised value of the property, exemptions, and the tax rate established by local taxing entities.
Appraised Home Value: Your County Appraisal District sets the value under which your taxes will be calculated through the property appraisal process.
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Exemptions: Specific reductions or exclusions applied to a property's taxable value, lowering the amount of property tax owed. Eligibility and application processes vary by county and exemption type.
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Taxing Entities' Tax Rate: Each of these set a tax rate and adds to your property taxes:
County Commissioners Court, City Council, School Board, County College.
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Depending on the area where you live, you might also be subject to the following entities:
Water District, Hospital & County Emergency Services.
WHAT TYPES OF HOMESTEAD EXEMPTIONS ARE AVAILABLE?
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General Residence Homestead Exemption
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Person Age 65 or Older (or Surviving Spouse) Exemption
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Disabled Person (or Surviving Spouse) Exemption
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100% Disabled Veteran (or Surviving Spouse) Exemption
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Donated Residence of Partially Disabled Veteran (or Surviving Spouse)
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Surviving Spouse of an Armed Services Member Killed in Line of Duty Exemption
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Surviving Spouse of a First Responder Killed while on Duty Exemption
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Learn more about these and how to apply to these through the following links, based on your county of residence.
HOW TO REDUCE YOUR PROPERTY TAXES?
You can lower your property taxes, by doing the following steps for protesting Property Taxes using Tarrant Appraisal District Website - www.TAD.org
STEP 1: CREATE AN ONLINE ACCOUNT
Follow steps found under ‘How Do I Protest My Property Value?’ to protest and create an online account. The online account allows you to access needed data regarding your property.
STEP 2: REVIEW PROTEST DEADLINE DATE & THAT RELEVANT EXEMPTIONS ARE APPLIED IN YOUR ACCOUNT
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From the menu select My Account/Dashboard.
Click on the following Dashboard options:
Property – Confirm protest date deadlines.
Exemptions – Confirm if all available exemptions are applied. List of available exemptions.
STEP 3: REVIEW AND GATHER EXISTING DATA
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Click on Documents link found on the Dashboard:​​
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Download and print the following documents used by TAD to support their appraised values: Residential Sales and Residential Equity.
STEP 4: BUILD YOUR CASE TO LOWER THE NOTIFIED/APPRAISED VALUE
Using the Residential Sales & the Residential Equity documents determine how the "COMP" differ from your (Subject) home based on the following attributes:
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Year built – are any of the comparable properties newer? Older? Recently remodeled?
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Are the comparable properties the same Quality and Condition?
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Same number of square feet (Actual Area)?
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Google (Realtor.com or Zillow.com) each of the properties listed to determine additional comparable attributes such as lot size, if property is on a corner lot, number of beds and baths, roof type, number of car garages, detached or attached garage, etc…
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Provide a list of major repairs with pictures and include estimates, if available, which may lower property values such as roof damage, fire damage, cracked foundation, broken HVAC, etc...
Note all above data on the actual documents, or in the provided Excel Template, to support your claim for reducing your appraised value. You can review the items in red fonts on the Example File, for guidance.​
STEP 5: REVIEW COMPARABLE PROPERTIES BASED ON LOCATION:
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From the Property Search, enter your address to review all homes located on the same street. This step should not be overlooked as you may find excellent examples of similar homes on your street where appraised values are lower that are not listed on the Comparable Reports.
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It is important to choose similar lot and home size, roof and building structure, and year built. If comparing between older and newer built homes, make sure the older build has been recently remodeled.
STEP 6: SUMMARIZE AND ASSEMBLE PROTEST INFORMATION
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Create a clear and specific summary of your analysis based on results in step 4.
Assemble all supporting documents including pictures of your property and estimates, if available, where defects should be considered to reduce the appraisal value.
The property owner will be required to state opinion of property value, when initiating the Protest.
Even if you have a weak to moderate case, you may want to protest based on a 5-7% appraised value reduction, which most likely be accepted in your online protest, or countered offered to a smaller reduction percentage.
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If you have a strong case, you may use the estimated value in the online or in person protest, and insist for you to be scheduled for an in person hearing, if the provided estimate is rejected.
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If you are scheduled for an in person hearing – bring 4 copies of all above data to scheduled hearing.
FULL GUIDE: HOW ARE YOUR PROPERTY TAXES CALCULATED AND HOW CAN YOU LOWER THESE?
​Your home value is the base for property taxes calculations. Every year, that value is increased by 10%, raising your property taxes, if not caught on time.
Your home value could remain untouched 2 out of every 3 years. Your county Appraisal District Board and state legislature can influence the frequency of appraisals and cap the increase allowed for residential homesteads.
Download the full document