Need Help with Your Texas Property Taxes, Start Here
As inflation has continued to rise, property taxes are at an all time high in Texas with a nearly 20% increase in some Counties. Property taxes are confusing and how to handle the challenges that come with navigating new laws and maintaining payments can pose a struggle. If you need help with your Texas Property Taxes read below.
Why Are Property Taxes Increasing in Texas?
Many counties across Texas like Harris, Travis and Bexar have seen a rise in property values due to continued growth in the housing market. When property values rise, so do property taxes. There is a direct correlation between a property’s value and how much the taxes on that property are. Many of these rises are related to the continued effects of the pandemic housing boom and the market surge cost. Property taxes in Texas are also higher because there is no state income tax. All of these factors play into one result: continually increasing property taxes.
How To Understand Your Property Tax Bill
Property tax bills can be confusing to understand; what the values mean and why your property taxes are the amount listed. For example, there is a difference between market value and taxable value. Property taxes are calculated based on the appraised value of your home, not the current market value. If property taxes were based on market value, your property tax bill would likely be higher. Property taxes are also assessed in different ways for things like schools, public infrastructure, and emergency services. Looking for a full breakdown on how to read your bill? Head here.
Lowering Property Taxes with Exemptions
Once your property tax bill is calculated based on the assessed value of your home, there are still ways to lower your overall bill. The most common way to do so is through exemptions. Exemptions offer a ‘removal’ of a certain amount of taxable value on your home. The most common one in Texas is the homestead exemption, which was recently raised to $100,000 ($110,000 if you are disabled or over 65) in 2024. This means that if you claim the homestead exemption of $100,000, it will be removed from the ‘taxable’ value of your home. So, if your home was taxed at $200,000, it will now be taxed at $100,000. To determine if you qualify and discover how to claim them, head here.
Can I Protest My Property Taxes
Homeowners can protest their property taxes through a system called ad valorem. Essentially this means homeowners can challenge an appraisal if they believe it’s too high. There are specific timelines for protesting and deadlines you’ll need to meet each year and they are county-specific. Homeowners interested in filing a protest and understanding the process should reach out to their local tax assessor’s office.
How To Manage Delinquent Property Taxes
Tax bills are issued in October of every year with a payment deadline of January 31st. If you don’t pay by February 1st, you are delinquent on your taxes. You continue to accrue penalties each month with the biggest penalties and fees occurring in July of each year. After July’s penalties are issued, homeowners who are still delinquent are issued a tax lien on their property and are then subject to foreclosure due to failure to pay.
Homeowners have a number of options to manage delinquent property taxes including deferrals, payment in full, or property tax loans.
Deferrals
Deferrals allow you to essentially not pay your taxes until the end of your life if you meet certain requirements, but they don’t cancel out your tax debt and whoever inherits your property will inherit the taxes and still have to pay them.
Payment In Full
The best way to manage your delinquent property taxes is to pay them in full without incurring additional debt. Sometimes delinquency occurs from temporary setbacks, so if you can pay them in full without adding to your overall debt, this is the best option. Ask us how we can pay your taxes in full.
Property Tax Loans
Companies like Johnson and Starr offer property tax loans for those who have delinquent tax bills and are facing foreclosure. The loans aren’t based on credit, offer flexible repayment terms, and immediately eliminate any impending foreclosure concerns. Discover more about Johnson and Starr property tax loans.
County Specific Resources
If you are struggling to understand your Texas property taxes, you should always look to your county for resources first. For example, Harris County has a FAQ page that offers answer to common county tax law questions and provides useful resources. You can also find useful workshops, information, webinars, and other assistance on the Texas Comptroller’s website.
Johnson and Starr Are Experts on Texas Property Taxes
Looking for information on your property taxes or struggling to pay your bill? Reach out to the experts at Johnson and Starr. Our team is trained to assist you with your questions and help you pay off delinquent property taxes once and for all. Call us at 1-866-639-8084.