How do property taxes work in Texas?

Texas property taxes are assessed annually by local appraisal districts and are calculated as a percentage of your home's fair market value. Because Texas does not collect a state income tax, these property taxes are essential for maintaining the high quality of our local school districts, infrastructure, and public safety departments. Understanding your specific tax rate is a critical component of calculating your monthly mortgage payment.

Components of a Texas Tax Bill

• School Districts (ISD): Usually the largest portion of your bill, funding local education.
• County & City: Covers local government services, parks, and road maintenance.
• MUDs & PIDs: Municipal Utility Districts or Public Improvement Districts often found in newer developments to fund water and sewer infrastructure.

How to Lower Your Taxes

The most common way to reduce your tax burden is by filing a Homestead Exemption on your primary residence. This removes a portion of your home's value from taxation and caps the amount your appraised value can increase each year. As a former public servant, I am well-versed in the local regulations and can guide you through the filing process and the annual protest cycle to ensure you are never overpaying.

The "Total" Financial Picture

When we look at homes, we look at the "Total Tax Rate." Some areas in Houston might have a higher purchase price but a lower tax rate, resulting in a similar monthly payment to a cheaper home in a high-tax MUD. We provide you with a full financial breakdown for every property we tour.