Lowering Your Property Tax Bill in Austin: A Comprehensive Guide

If you’re an Austin homeowner, chances are you’ve noticed rising property taxes alongside the city’s booming real estate market. Fortunately, there are steps you can take to reduce your tax burden and ensure you’re paying a fair amount. This guide will walk you through the essentials of property taxes in Travis County, tips for appealing assessments, and resources to maximize your savings.

How Property Taxes Work in Austin

Austin property taxes are calculated based on three main components:

1. Appraised Value: Determined by the Travis Central Appraisal District (TCAD), this reflects your property’s market value.
2. Tax Rates: Set by various taxing entities like the city, school districts, and county.
3. Exemptions: Deductions that lower your taxable value, such as homestead or senior exemptions.

Here’s an example of Austin’s typical property tax rates:

• City of Austin: 0.5410%
• Austin ISD: 1.0167%
• Travis County: 0.3542%
• Average Total Rate: Approximately 2.17%

These rates may change annually based on local budgets and voter-approved measures.

Key Areas Affected by Property Tax Increases

Rising property values in Austin have driven higher tax assessments in neighborhoods like:

• 78704 (South Congress): A trendy area with significant appreciation.
• 78746 (Westlake): Known for luxury homes and top-tier schools.
• 78731 (Northwest Hills): Featuring consistent growth in home values.

How to Appeal Your Property Tax Assessment

If you believe your property’s appraised value is too high, appealing can save you thousands. Here’s how:

1. Review Your Appraisal Notice

Every spring, TCAD sends a notice of appraised value. Check for:

• Accuracy: Is the square footage or lot size correct?
• Comparable Sales: Does the value align with recent sales in your area?

2. Decide to Protest

Consider protesting if:

• Your appraised value exceeds your home’s market value.
• Comparable properties in your neighborhood are assessed lower.
• Errors exist in your property’s details.

3. File Your Protest

The deadline to file is typically May 15th or 30 days after receiving your appraisal notice. You can:

• Use the TCAD online portal.
• Submit Form 50-132 via mail or in person to TCAD’s office.

4. Gather Evidence

Strengthen your appeal with:

• Recent Sales Data: Comparable homes in your neighborhood.
• Photos: Highlight damage or features that lower value.
• Independent Appraisal: A professional report can add credibility.

5. Attend the Informal Review

You’ll meet with a TCAD appraiser to discuss your evidence. Many disputes are resolved here, but unresolved cases proceed to a formal hearing.

6. Prepare for the Formal Hearing

During the Appraisal Review Board (ARB) hearing, present a clear case with:

• Data supporting a lower value.
• Evidence of inaccuracies in the assessment.

7. Explore Further Appeals

If unsatisfied with the ARB’s decision, you can:

• Request binding arbitration.
• File a lawsuit in district court.

Exemptions That Reduce Your Tax Burden

Taking advantage of exemptions can significantly lower your tax bill. Common exemptions include:

• Homestead Exemption: Reduces taxable value by up to 20%.
• Over-65 or Disabled Exemption: Additional savings for seniors and disabled homeowners.
• Veterans Exemption: Based on disability ratings.

Visit the TCAD exemptions page to learn more.

Austin Property Tax Trends

• Rising Home Values: Austin’s average home prices have increased by over 30% in recent years.
• Legislative Caps: Homestead properties are limited to a 10% annual increase in assessed value.
• Hot Neighborhoods: Areas like 78701 (Downtown) and 78745 (South Austin) are experiencing sharp tax increases.

How Abode Simplifies Property Tax Appeals

Navigating the property tax appeal process can be overwhelming, but tools like Abode make it easier:

• Local Market Insights: Compare your home’s value to nearby properties.
• Streamlined Filing: Submit protests directly through the app.
• Exemption Optimization: Ensure you’re leveraging all available savings.

Take Control of Your Property Taxes

By understanding your property taxes and taking proactive steps to challenge unfair assessments, you can save money and ensure a fair valuation. Tools like Abode simplify the process, making it easier to navigate the complexities of property tax appeals.

Ready to start saving? Sign up for Abode today and take control of your property taxes.