Why are Texas Property Taxes So High?

This is a complex question, and many Texans think they have the answer. In this blog, the Home Tax Solutions team is going to take a look at some of the reasons Texans find themselves with hefty property tax bills each year, what homeowners can do, and how the Home Tax Solutions team helps. Property taxes can be baffling and frustrating if you don’t deal with them regularly, but our knowledgeable loan specialists have you covered. With offices across the state, we proudly serve all 254 counties in Texas, helping families keep their homes and defeat the property tax debt cycle. 

1. Property Appraised Values 

The new bill that was passed to protect homeowners from increasing property tax bills will help to keep the percentage of taxes to “manageable” increases each year, but that doesn’t protect the rapidly increasing property valuations. Each year, Texas property owners see the values of their homes creeping up. The state caps property value increases at 10% each year, but this cap does not protect new homeowners or commercial properties. Even a 10% increase in appraised value is significant. Due to the number of residences that need to be valued by each tax assessor, it simply isn’t feasible for them to evaluate each property every year. Instead, they rely on spot checking and average home values in the area, leaving many homeowners with overvalued properties and higher than necessary property tax bills. 

2. Funding Local Services & Districts 

In the state of Texas, local governments set their property taxes, which means there is significant fluctuation in taxing between cities, counties, and taxing districts. In fact, two homeowners living in the same city and county but different school districts may have vastly differing home tax bills. The new cap on increases in tax percentages will help, but all of the fluctuation can make it nearly impossible to budget for your annual tax bill. 

3. Tradeoff for Lower Sales Tax & No State Income Tax 

Texans have some of the highest property taxes in the U.S., but we have one of the lowest sales tax rates and no state income tax. For many, the increased property tax rates are a straightforward tradeoff for these benefits. Because we pay less in taxes elsewhere, the state and local governments and taxing units have to get funding somewhere. In many cases, that funding has come from property taxes. 

How Can I Keep My Property Tax Payments Under Control? 

There are many steps you can take to reduce your annual property tax bill and stay involved in the process of determining annual home tax increases, including: 

  • Apply for exemptions (like Homestead Exemptions) that can reduce your annual home tax bill.
  • Challenge your home’s assessed value with the appraisal review board. 
  • Get out to vote in November if your county is proposing taxes above the new limit for annual increases. 
  • Attend county and local open meetings where property taxes will be discussed. 

How Can Home Tax Solutions Help? 

We offer some of the most competitive property tax loan terms in the state of Texas. These property tax loans allow homeowners to repay back property taxes, split the cost of their current home taxes into more manageable payments, and avoid the hefty fines and penalties from the state. We don’t check individual credit scores to determine eligibility, but we will need a little bit of information about you to get started. Simply complete our online form. A team member in the office location closest to your home will be in touch soon to discuss your options.