6 Myths about Texas Property Tax

There is a lot of confusion when it comes to Texas property taxes. As a homeowner, you’ve likely heard things that make the whole property tax system seem complicated and intimidating. From property tax rates to exemptions, it can feel overwhelming—especially if you’re trying to manage your finances effectively.

In this blog post, we’re busting six common myths about Texas property taxes to help you better understand how they work, how to reduce your bill, and why you might want to consider working with Abode to simplify the process.

Myth 1: Property Taxes in Texas Are Set by the State

The Truth: Texas doesn’t set a state-wide property tax rate.

Unlike income tax or sales tax, property taxes in Texas aren’t determined by the state government. Instead, property tax rates are set by local taxing authorities, which means rates can vary widely depending on where you live. Local entities like cities, counties, school districts, and special districts each have the power to assess taxes, and the combined rate from these jurisdictions determines what you’ll pay.

Texas does have laws regulating how much local governments can increase taxes without voter approval, but it’s your local authorities that set the actual rates. So, while property taxes might be higher in some areas of Texas, the state itself isn’t the one setting the rates.

Myth 2: Property Taxes Only Go Up When Your Home’s Value Increases

The Truth: Property taxes can increase even if your home’s value stays the same.

While it’s true that property tax bills are based on your home’s assessed value, they can also rise because local governments may increase the tax rate to meet their budget needs. This is especially common when school districts or other public services require more funding. So, even if your home’s value stays relatively flat, you might still see an increase in your property tax bill due to changes in the tax rate.

Myth 3: You Can’t Protest Your Property Tax Bill

The Truth: In Texas, you absolutely can protest your property tax bill—and you should if you think it’s too high!

Every year, homeowners have the right to protest their home’s appraised value with their local County Appraisal District (CAD). The protest process allows you to contest the valuation of your home and, if successful, reduce your tax burden. Texas law even allows you to submit your protest online in many counties, making the process easier than ever.

If you believe your home has been overvalued, gathering evidence such as photos, property records, and recent sales data for comparable homes can help you build a strong case. Filing your protest before the deadline (usually May 15 or 30 days after your notice of appraised value is mailed) is key to making sure your voice is heard.

Myth 4: All Homes in Texas Qualify for a Homestead Exemption

The Truth: Not every home qualifies for a Homestead Exemption.

While the homestead exemption is one of the most beneficial property tax reliefs for Texas homeowners, not every property qualifies. To be eligible, the home must be your primary residence as of January 1 of the tax year. Second homes, rental properties, and investment properties don’t qualify.

The general homestead exemption reduces your home’s taxable value by $25,000 for school district taxes, but additional exemptions are available for homeowners over 65, disabled individuals, and veterans.

Myth 5: There’s No Limit to How Much My Property Taxes Can Increase

The Truth: There are laws in place to limit the increase of your property tax bill in Texas.

Many homeowners worry that their property tax bills will skyrocket if their home’s value increases significantly. While it’s true that higher home values generally lead to higher taxes, Texas has a taxable value cap in place for homes with a homestead exemption. Under this cap, the taxable value of your home can’t increase by more than 10% per year, no matter how much the market value rises.

This 10% cap helps shield homeowners from massive jumps in their property tax bills during times of rapid real estate appreciation.

Myth 6: You Have to Hire a Professional to Get a Property Tax Exemption

The Truth: You don’t need to hire anyone to apply for a property tax exemption.

Many homeowners think they need to pay a professional or a lawyer to help them file for a homestead exemption or other property tax relief programs. You can often submit the forms online through your local County Appraisal District.

However, working with an expert like Abode can help simplify the process, especially if you’re filing an appeal for the first time or seeking more advanced exemptions like those for disabled veterans. Abode’s team of experts can ensure all paperwork is filed correctly and on time, maximizing your chances of receiving the tax relief you deserve.

🏠 Insider Tips for Winning Property Tax Appeals in Texas. 

Consider Working With Abode

Managing property taxes can be tricky, especially when trying to navigate exemptions, protests, and fluctuating tax rates. Whether you’re looking to protest your property valuation or make sure you’re taking advantage of every exemption available, Abode is here to help. Our platform simplifies the process, saving you time and money while giving you the peace of mind that you’re not overpaying.

Ready to lower your property tax bill? Sign up with Abode today and take control of your taxes!

FAQs

Why does Texas have no property tax?

Texas does not have a state property tax. Instead, local governments, including cities, counties, and school districts, levy property taxes to fund public services like education, infrastructure, and emergency services.

What is the truth in taxation in Texas?

"Truth in Taxation" in Texas refers to laws that require taxing units to be transparent about proposed property tax increases. Local governments must notify taxpayers about tax rate changes and allow for public hearings before approving higher rates.

Why does Texas have such high property tax?

Texas has high property taxes because the state relies on property taxes to fund public services, especially since it does not collect state income tax. This heavy reliance on property taxes by local governments leads to higher rates to cover essential services like education and infrastructure.