How Does Property Tax Collection Work in Texas?
When it comes to the rates of property taxes by state, Texas nears the top of the list. Texas property taxes are among some of the highest property taxes in the U.S, at an average of 2.18% of the estimated value of your home. If you’re new to the state or you’re a new property owner, you’ll need to get to grips with the basics of this system. Here is a quick guide from AFIC, one of the leading property tax loan companies in Texas.
A Brief Background of Property Taxes in Texas
The high property taxes in the Lone Star State are needed to compensate for the fact that there is no individual income tax in Texas. Texas is one of the nine states in the U.S. that does not impose income tax on its citizens, which is something most residents really enjoy. However, as a result, the counties need to get their funding for public services like schools, libraries, parks, roads, and emergency services from another source, which is where property taxes come in.
Property taxes in Texas are set at a local government level as there are no state property taxes, so they’ll be different from county to county. For example, in Dallas County the average property tax rate is 2.74%, amounting to approximately $6,850 on a $250,000 home. In San Antonio, where the average rate is 2.66%, the same home would cost around $6,650 in property taxes. Meanwhile, in Terrell County, with a lower average rate of 2.24%, property taxes on a $250,000 home would be about $5,600.
The Property Tax System in Texas
There are three basic steps to collecting property taxes in Texas:
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Step One: Appraised values for properties in each district are set by that district’s Chief Appraiser on January 1 of each year. A lien attaches to each taxable property to ensure payment.
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Step Two: Property owners may dispute the appraised value of their property through the appraisal review board. You should receive your property valuation for the next year’s property taxes between April and May of the current year, and disputes are usually heard between May and June of the current year.
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Step Three: Actual tax rates are set in accordance with annual tax budgets by each local government between August and September for next year’s tax bill. Property tax bills are then sent out in October, and collection by local government agencies can begin. These taxes must be collected by January 31st of next year as penalties will start being imposed from February 1st.
Property Tax Penalties
You have from October (when you receive your bill) to January 31st of the following year to pay your property taxes for the previous year. Planning for this expense is crucial, as penalties for non-payment can be severe—reaching approximately 43% of the original tax bill within a year. If taxes remain unpaid, the local government may initiate foreclosure proceedings or take legal action. In such cases, it’s essential to understand what to do during a property tax collection lawsuit in Texas to protect your rights and avoid losing your home.
However, if you are unable to pay your property tax bill and want to avoid penalties, there are affordable solutions designed to assist you in making this payment and preventing foreclosure on your home.
Texas Property Tax Loans
Even if you have the best intentions, circumstances can crop up in anyone’s life that make paying property taxes a challenge. Reputable property tax loan companies like American Finance & Investment Company, Inc. (AFIC) understand the cash flow challenges that home and business owners face and can step in and give you a loan to pay property taxes – no credit check or deposit required. This means fast, effective tax relief that allows you to keep your home or business. If foreclosure occurs, you may still have options to reclaim your property—learn more about getting your property back after a tax foreclosure sale and the steps involved in the redemption process. Our compassionate, skilled team will quickly settle your Texas property tax bill and structure your loan repayments to be as affordable as possible.
About AFIC
AFIC’s property tax loans can provide fast, affordable relief from the often unmanageable demands of county and city tax offices throughout the state. You can receive an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:
- Quick and completely online process
- No money down
- No credit check
- Free 30-day rate match
- Match competitors and beat their rate by 1%
- Avoid high penalties and foreclosure
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.
