PROPERTY TAX NOTICES ARE OUT!
If you haven’t already, you will be receiving your property tax notice from your respective county appraisal office. After you pick your mouth up off the floor, it’s good to understand what exactly is going on with each of the values in that notice.
You have three values. The first – and big one – is the MARKET VALUE. This is the appraisal district’s estimate on what they think your home would sell for on the open market. This number is notoriously inaccurate. It’s like Zillow’s Zestimate. Keep in mind, Texas is a non-disclosure state, as such, the appraisal district does not have access to the final sales price of your home. They use their own algorithm, and as I said before, they are extremely inaccurate. No matter, this is what the appraisal district uses to determine your tax liability, so we have to go with it.
Second, is your ASSESSED VALUE. This is your capped value. Remember, if you have a homestead exemption on your home, they can only raise your appraised value by 10% per year. So, for most of us, this number will be last year’s value plus 10%.
And last is your TAXABLE VALUE. This is the important one. This is what you pay taxes on. This value takes into account any exemptions you have on the property, such as a homestead, over 65, or disability. This is the number that really matters when it comes to how much you will owe.
What can you do going forward?
If you are not protesting your taxes every year, you’re doing yourself a huge disfavor. You need to do this every single year. It is the only way to minimize the inevitable yearly increase from the tax district. Whether you do it yourself or hire a firm to do it, just make sure you get it done. I have recommendations for local firms that will protest for you. Don’t hesitate to reach out.
Second, make sure you have every exemption you possibly qualify for. These make a HUGE difference. HERE is a list of the exemptions available from the Travis County Appraisal District. If you need help with any of this, reach out, I’m happy to help.
IMPORTANT DATES
Jan 1st Property values are set
April 1st Notices go out for appraised values
May 15th Deadline to file your protest
July 25 Certification of appraisal roll
Aug / Sep Tax rates set
October Mail out final tax bills
Jan 31st Payment due
Definitions:
Market Value What the property would sell for on the open market. No limit on what this can go to.
Assessed Value The limited property value after exemptions are applied. This cannot increase more than 10% per year.
Taxable Value The property value you pay taxes on.