Property taxes can be confusing, overwhelming, and quite frankly, frustrating for many. However, they are a vital part in maintaining your home, neighborhood, and community.
Understanding Your Property Taxes
Property taxes can be confusing, overwhelming, and quite frankly, frustrating for many. However, they are a vital part in maintaining your home, neighborhood, and community.
The more you know and understand about the ins and outs of property taxes, the more confident and aware you can be in your role as a homeowner. That is why, in this blog, we will be discussing just that — from what they are, all the way to how they are calculated. This blog can serve as your guide through the world of property taxes.
What Are Property Taxes?
Property taxes are imposed by local governments on the real estate and business personal property that one owns. These taxes are typically used to fund community services, like schools, police, fire departments, roads, and local government operations. The amount an individual pays on their property taxes is determined by the value of their property and the local tax rates.
How Are Property Taxes Calculated?
In most cases, property taxes are assessed annually, through a process in which an appraisal district determines a number of details that ultimately indicate how much the owner will need to pay in taxes. These taxes are calculated by:
- The assessed property value: Based on your property’s size, condition, location, and the current real estate market, an appraiser will determine the value of your property.
- Exemptions and deductions: Once your market value has been determined, exemptions and deductions that a property qualifies for can reduce the taxable or assessed value of the property. Many taxing authorities offer optional exemptions or incentives that can lower your property tax valuation. These can include homestead exemptions, senior citizen discounts, veterans’ benefits, and other special allowances.
- The tax rate or “mill levy”: Your tax rate or “mill levy” is the percentage per each $100 of your property’s value you will be paying toward taxes. This is determined by the local governments in your area.
Example:
Market Value - exemptions/deductions = Assessed Value x tax rate = $Property Tax
$250,000 - $100,000 (homestead) = $150,000 x $2.38/$100 = $3,570.00
Ways to Lower Your Property Taxes
The tax rate is set by your local government who allows the public to have a say in how tax dollars are spent and how much is needed. Other ways to potentially lower your own property taxes include:
- Applying for exemptions and deductions: With certain jurisdictions offering exemptions for many different situations, you should research your local tax exemptions and deductions. You just may possess the ability to qualify for one. Some common exemptions are the Homestead, Age 65 or Older, Disabled Veterans, and Disability.
Filing for a Homestead Exemption? Check out our tutorial, How to Fill Out & Submit a Homestead Exemption Form!
- Protesting your property appraisal value: Sometimes, your local property appraiser may determine your property to be at a higher value than you believe it to be worth. Fortunately, you possess the right to challenge this and can provide them with individual characteristics of your property or market sales information the appraiser may not be aware of. You also have a right to make sure your property is appraised at an equal and uniform level of value to neighboring properties that are similar to yours.
Having Difficulty Paying Your Property Taxes?
- If you have a homestead and 65 or older exemption, you may be able to defer paying your property taxes as long as you own and live in your home. Check with your local assessor to see if any programs like this are available near you.
- Many tax assessor offices offer payment plans to qualifying property owners that assist those owners who have difficulty paying their annual property taxes. Check with your local assessor to see what options may be available to you.
Ready to Protest? We Are Here for You.
Protesting your property taxes can be intimidating for anyone to take on, especially if you have not done it before. Working with a property tax professional could help ensure your protest goes smoothly.
At SWBC, our property tax experts have a high success rate in helping their clients successfully protest their appraisal value. If you believe that your property has been unfairly or incorrectly assessed in its value, let us represent you in your protest. To save your hard-earned cash, contact us here!
Gary Rivas
Gary Rivas is a Texas licensed Senior Property Tax Consultant experienced in providing Industrial, Commercial, and Residential property tax reduction advisory services for real and personal property in Texas and multiple states across the country. He has 38 years of experience in the Property Tax Profession with 34 years as a Property Tax Consultant, and 41 years as a licensed Texas Real Estate Agent.
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