Key Taxable Value refers to the assessed value of a property used by local authorities to calculate property taxes. This value, which is often lower than the market value, forms the basis for determining how much a homeowner owes annually in property taxes.
Key Taxable Value is the portion of a property’s assessed value that is subject to taxation. After applying exemptions, such as homestead or senior citizen exemptions, the taxable value determines your property tax bill. It is a critical figure for budgeting and understanding how local property taxes are calculated.
Knowing your property’s Key Taxable Value helps you ensure that your property taxes are fair and accurate. It’s also essential for identifying opportunities to reduce your tax burden through exemptions or appeals.
A homeowner in Texas has a property assessed at $250,000. After applying a $25,000 homestead exemption, their Key Taxable Value is reduced to $225,000. Based on their local property tax rate of 2%, they owe $4,500 in taxes instead of $5,000.
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Key Taxable Value is a crucial factor in determining property taxes. By understanding and reviewing this value, homeowners can ensure accuracy, take advantage of exemptions, and potentially lower their tax burden.
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