Texas Property Tax Rates among the Nation’s Highest In Texas, affectionately known as the Lone Star State, homeowners face the sixth steepest property taxes in the U.S., boasting a rate of 1.68%.
Buying a Home in Texas: More than Just the Price Tag
Purchasing a home in the rapidly expanding state of Texas is a multifaceted decision. Beyond mulling over the mortgage interest rate, the neighborhood, and the total cost of the house, potential buyers must also factor in annual property taxes.
Skyrocketing Rates in Metropolitan Areas Major cities such as San Antonio are seeing property tax rates at some of their peak levels, propelled by escalating property valuations. With these increasing taxes, local and state authorities are in a hustle to offer a helping hand to homeowners who are grappling with these hefty charges.
How Does Texas Property Taxes Compare Nationally?
An in-depth review by the Tax Foundation placed Texas as having the sixth heaviest property tax burden in the country. Clocking in at 1.68%, Texas sits not far behind states like New Jersey with a 2.23% rate and Illinois at 2.08%.
Interestingly, despite the allure of a more affordable lifestyle in Texas, states notorious for a high cost of living like California and New York bear tax rates of only .75% and 1.40% respectively. The primary reason for Texas’s inflated rate? The state steers clear of income tax, leaning heavily on property taxes to foot its governmental bills.
Snapshot of Property Taxes by County In 2021, folks living in Bexar County had to shell out a median property tax of $3,719. Over in Travis County, home to Austin, the median stood at a whopping $6,517. Meanwhile, in the blossoming county of Comal, households faced a median bill of $4,087.
The Future Landscape of Property Taxes in Texas Given factors like a property’s location and size, 2023 could see homeowners coughing up well above $10,000 in taxes—a direct result of the $1,000 surge we saw in 2022 due to the booming real estate market. This uptick has sparked a wave of protests, with residents fervently hoping to dial down their property valuations and, by extension, their taxes.
Silver Lining: Potential Relief Ahead But it’s not all doom and gloom. Governor Abbott has put pen to paper on an $18 billion tax reduction to aid Texan homeowners burdened by these climbing property taxes. Tapping into the state’s hefty $12.6 billion reserve, this relief plan includes slicing school taxes, which could mean tax reductions north of 40% for some lucky homeowners, as highlighted in a report by Texas Tribute.