FrequentlyAskedQuestions
WhenarePropertyTaxesDueinTexas?
“WhenarepropertytaxdueinTexas”isanoftenaskedquestion.Thereisasimpleanswerandthenthereexceptions. Let’sstartwiththesimpleanswer:
TexaspropertytaxesaredueonJanuary31st.Propertytaxesfor2024aredueJanuary31,2025.Thisruleappliesin ~97%ofcases.
Exceptionstothepropertytaxpaymentdeadlineoccurwhen:
1)Thepropertywasprotested,andtheappraisaldistrictorappraisalreviewboarddidnotcompletethehearingin timetosendataxbillbyJanuary
1.Propertytaxesareduethelaterof:January31or30daysafterthetaxassessorcollectormailsthepropertytaxbill.
2)Theappraisaldistricthasnotvaluedtheproperty.Therearetwoprimaryreasonstheappraisaldistrictswillbe delinquentisvaluingproperty:
a)itiscomplexanddoesnotmeettheirroutinevaluationmodelsor b)thepropertyhasbeensplitintoanumberofsmallerparcelsandtheappraisaldistricthasnot“split-out”the “parenttract”intoanumberof“childtracts”.
Let’sreviewtheTexaspropertytaxcalendartoprovideperspective.
TexasPropertyTaxCalendar
January1
Effectivedateofvaluation.ImprovementsconstructedafterJanuary1are nottaxableinthecurrentyear
March/April/May
Appraisaldistrictssendnoticesofassessedvalueiftheyrevalueproperty
May15th
Deadlinetofileapropertytaxappeal.
MaytoSeptember
Appraisaldistrictandappraisalreviewboardsconducthearings.
September/October
Taxentitiessettaxrates
November/December
Taxentitiessendtaxbills
January
PropertytaxpaymentsareduethelaterofJanuary31or30days afterthetaxbillismailed.
PropertyOwnerHasRighttoProtestLateAssessments
TheTexasTaxCodeprovidestheownerarighttoprotestthevalueeachyear. Thepropertyownerstillhasthisrightevenif theappraisaldistrictistwoorthreeyearsbehindinvaluingsomeproperty. Therearenopenaltiesorinterestsinceproperty taxesarenotdue.
AssessmentofSplit-OutsCanbeYearsLate
“Split-outs”arethemosttypicalsituationforpropertytaxassessmentstobeayearortwolate.Yes,wehaveseenanumber ofsuchcases. Itcancausehavocwhenalanddeveloperhaspurchasedalargetractofland,andabuilderhasbuilthouses andahomebuyerhaspurchasedahouse.Itisimpossibletoproratepropertytaxessincetheinitialpropertytaxassessment hasnotbeendetermined.
TaxDueDateforLateAssessments
Incasesoflateassessment,thepropertyownerhas30daysafterthenoticeofassessedvaluehasbeensent.Theappraisal reviewboardisthenresponsiblefornoticingahearing.Theappraisalreviewboardisresponsibleforsendingnoticeof hearingsresultsafterthehearing.Finally,theappraisaldistrictwillsend“supplementaltaxrollrecords”totherelevanttax entities.Thenthetaxentitiessendtaxbills.Propertytaxesaredue30daysafterthetaxbillissent,evenifitis10yearsafter whentaxeswouldhaveinitiallybeendue(Ihavenotseenataxassessmentthatlate).Therearenopenaltiesorinterest providedthepropertytaxesarepaidwithin30daysofwhenthetaxentitysendsthetaxbill.Propertyownersareresponsible forpayingpropertytaxeseveniftheydonotreceivethetaxbill,providedthetaxesareowed.(Iftheassessment/appeal processisnotcompletetaxesarenotdue.)However,ifthetaxbillissenttothewrongaddressorlostinthemail,property taxesarestilldue.
Whataremypropertytaxes?
PropertytaxesinTexasarelocaltaxesthatprovidethelargestsourceofmoneytolocalgovernments.Localgovernments usethismoneytopayforschools,streets,roads,police,fireprotection,andmanyotherservices.Texaslawestablishesthe processfollowedbylocalofficialsindeterminingthevaluefortheproperty,ensuringthatvaluesareequalanduniform, settingtaxrates,andcollectingtaxes.
Texashasnostatepropertytax.TheTexasConstitutionandstatutorylawauthorizeslocalgovernmentstocollectthetax. Thestatedoesnotsettaxrates,collecttaxes,orsettledisputesbetweenyouandyourlocalgovernments.
Whathappensifyoudon’tpaypropertytaxes?
Ifwedon’tpaytaxesinTexasinitially,youwillincuranimmediatepenaltyof6%ofyouroriginaltaxbillonthefirstbusiness dayofFebruary,1%interestratepermonthforeachmonthitgoesunpaidinfulluntilJune30th,andanadditional2%penalty fromJuly1st.
WhatisthepropertytaxrateinTexas?
PropertytaxesinTexasistheseventhhighestintheU.S.TheaverageeffectivepropertytaxrateinTexasisgivenas1.69%.
Whatstateshavenopropertytax?
Propertytaxesarelocaltaxesthatprovidethelargestsourceofmoneylocalgovernmentsusetopayforschools,streets, roads,police,fireprotectionandmanyotherservices.Texaslawestablishestheprocessfollowedbylocalofficialsin determiningthevalueforproperty,ensuringthatvaluesareequalanduniform,settingtaxratesandcollectingtaxes.
Texashasnostatepropertytax.TheTexasConstitutionandstatutorylawauthorizeslocalgovernmentstocollectthetax. Thestatedoesnotsettaxrates,collecttaxesorsettledisputesbetweenyouandyourlocalgovernments.
Atwhatage,doseniorsstoppayingpropertytaxes
TheTexasTaxCode,Section33.06,allowstaxpayers65yearsofageoroldertodefertheirpropertytaxesuntiltheirestates aresettledafterdeath.
Age65orolderanddisabledexemptions:Individualsaged65orolderordisabledresidencehomesteadownersqualifyfora esidencehomesteadexemptionforschooldistricttaxes,inadditiontothe$25,000exemptionforallhomeowners.If theownerqualifiesforboththe$10,000exemptionforage65orolderhomeownersandthe$10,000exemptionfordisabled homeowners,theownermustchooseoneortheotherforschooldistricttaxes.Theownercannotreceivebothexemptions.
Optionalage65orolderordisabledexemptions:Anytaxingunitmayofferanadditionalresidencehomesteadexemption amountofatleast$3,000fortaxpayersaged65orolderordisabled.
Whatdeterminespropertytax
Texasleviespropertytaxesasapercentageofeachhome’sappraisedvalue.So,forexample,ifyourtotaltaxrateis1.5%,and yourhomevalueis$100,000,youwillowe$1,500inannualpropertytaxes.
PropertyTaxLocations
