If you thought your texas property tax increase 2022 was high, just wait until this year’s bill! Texas homeowners may see their property taxes increase in 2023, though the increase may vary depending on your home’s value and your municipality. If you’re wondering how much your property tax bill might go up, or what you can do to prepare, read on. We’ll discuss the factors contributing to a property tax rate increase in Texas and explain what you can do to minimize the impact on your wallet.

Market Value vs Taxable Value

The good news is that even if your home’s market value increases to $600,000, your taxable value may only go up by a few thousand dollars.  The appraisal district determines your home’s taxable value, which is usually lower than the market value.

Your municipality will use the appraised value of your home to calculate your property taxes. The governing body also offers a homestead exemption, which allows you to deduct a certain amount from your taxable value.

For example, if your taxable value is $100,000 and you have a $25,000 homestead exemption, your municipality will only tax you on $75,000 of your home’s value.

The amount of your property tax increase will also depend on the rate set by your municipality. Texas’s average effective property tax rate is around two percent, but it can be as high as three percent in some areas.

State law allows proposed tax rates to rise as much as 3.5% increased revenue each year without Texas voters giving voter approval. The budget process each year determines proposed rates for the next fiscal year.

Property Owners: Tax Calendar in Texas

In Harris county, Texas, you usually receive your property tax information in October. A tax lien is placed on property annually by the due date in January.

In general, if you don’t pay your property tax bills before February 1, they become delinquent, and you may receive late fees. Penalty and interest charges (7% in 2022) begin to accrue on unpaid taxes at this time also.

(If you’re over 65, have a disability homestead, are a qualified disabled veteran, or have a surviving spouse exemption, you may pay using a quarterly plan but must let the taxing entity know.)

The county may impose additional penalties and interest if you haven’t paid by July 1.

You can lower property taxes by protesting your appraised values. For homestead properties, you may submit a protest before the latest date below to get your protest in for the early protest deadline:

  • By the early protest deadline in April of each year
  • 30 days after the appraisal district sends a notice of appraised value

Or you can submit your protest in time for the regular deadline in May each year. 

The land and buildings protest deadline is also usually in May. And a later protest deadline may apply if HCAD mails your notice of appraised value after May 1.

The May 15 deadline also applies to business and industrial personal property accounts. In all cases with a later protest deadline, the due date is on the notice of appraised value. (1)

What You Can Do About Property Taxes

Property owners may do a few different things to lower property tax rates.

The first is to ensure that the appraisal district correctly appraises your home. If you think your taxable value is too high, you can file a protest with the district, but not until you receive your property tax bill.

You can also look into getting a homestead exemption, if you don’t already have one. The exemption will lower your taxable value, which means that your property taxes will also move lower.

Finally, you can try to negotiate with your municipality for a lower tax rate. You may negotiate during the budgeting process. However, getting a lower rate may be more difficult if your municipality is facing a tight budget.

Keep in mind that you may not be able to lower your property taxes significantly, but every little bit helps. If you’re worried about paying higher taxes, it’s essential to start planning now so that you can fight the taxes in your district.

An experienced real estate attorney can help you negotiate with your municipality, file a tax protest, and represent you at any hearings.

Property Tax Bills: Determining Your Taxable Home Value

The appraisal district creates your home’s appraised value taking into account any improvements you’ve made to your home, such as additions or renovations. As the property owner, you can raise your own taxes by increasing your home’s value. It also considers the current market conditions in your area.

Harris County Appraisal District (“HCAD”) of Harris County, Texas, establishes your home’s appraised value each year. Then, HCAD’s Board of Trustees calculates your billable property taxes based on your appraised value and the tax rates for the year.

The Harris County Tax Assessor-Collector’s Office then sends you, as the property owner, the tax bill each year. (2)

Texas Property Tax Increase 2022

Property tax bills may be shocking in 2022! If you’ve received your tax bill as a property owner, you may wonder why the taxes increase yearly. It’s because “local governments in Texas rely heavily on property tax revenue to pay for salaries of police officers and firefighters, as well as for government services including roads, libraries, and public schools.

Unlike most other states, Texas does not have a state income tax, and property tax bills are among the highest in the nation… According to the comptroller’s office, property tax collections have risen more than 20% since 2017.”  (3)

Rising property taxes result when appraisal districts and local taxing entities need a proposed tax rate increase to cover their expenses. There is then a vote. If voters approve tax increases, your taxes can go up. A tax increase increases total property tax revenue to meet your county’s needs.

For example, Harris county uses the tax collected to finance its general government (maintenance and operations – “M&O”) expenditures. (4) These expenses may include school districts also.

We Can Help

At Jarrett Law, our experienced real estate legal team can help if you want to protest your property tax bill. The process of appeal involves hearings, working with appraisers, and possible appeals. For your best outcome, it is vital to have an attorney represent you in this process.

Jarrett Law PLLC is a full-service real estate law firm based in Houston, Texas, that handles all types of residential and commercial real estate legal matters throughout the state of Texas. Contact us today if you have questions or concerns about property taxes, and find out how we can help you find relief!