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How Do Texas Property Taxes Compare to Other States?

Property Taxes in Texas Compared to Other States

If you are a homeowner then you know what it’s like to have to pay property taxes each year. Even though paying property taxes isn’t fun, it’s well worth the freedoms that come with being a homeowner, especially here in the great state of Texas. When you pay your property taxes on time, you remain in good standing with the local taxing authority, avoiding extra penalties and interest charges. Most importantly, you avoid having a tax lien put on your property to secure the payment of those delinquent taxes. If you’re unfamiliar with what happens if you don’t pay your delinquent tax balance for your property taxes, then you should read our previous blog post for helpful and relevant information.

Property tax laws and statutes are different in each of the 50 states, but there are always some similarities between them as well. No matter which state you live in you’re going to have to pay property tax, it’s just a matter of how much. 

We are SimplicitE Tax Loans, and we’re a property tax lender that specifically helps Texans obtain  property tax loans online, and today’s blog will focus on just how much property tax Texans are required to pay as compared to the rest of the country.

How Much is Texas Property Tax?

The question is actually a bit more complicated than it seems because Texas doesn’t have a uniform state property tax. Instead, local taxing authorities such as counties, cities, and school districts are the property tax collection authorities in Texas. Local taxing authorities will use the fair market value of your home, or property, as assessed by the local tax assessors and property appraisers in order to determine its taxable value. Then, an actual property tax amount will be calculated based on a percentage of the assessed value of the property. The amount of property tax that you owe will fluctuate with the assessed value of your home from year to year.

If a property falls within the jurisdiction of multiple local taxing authorities, such as both a city and a county, then the tax rate would be the combined total of tax assessed by each of these taxing authorities. So that’s the complex answer to the question, “How Much is Texas Property Tax?” All we can really do is take an average of what Texans pay as a whole, recognizing that in some parts of Texas property taxes may be less, while in other parts of Texas a homeowner’s property taxes may be more.

Where Texas Ranks Among U.S. States

Unfortunately, Texas ranks on the low end in terms of best property tax rates in the nation. According to Rocket Mortgage, Texas ranks 45 out of 51 (including the District of Columbia), with a real estate tax rate of 1.80% of assessed value. The average price of a home in Texas is 172,500, making the annual property tax bill an average of $3,907

The five states with the least expensive annual property tax are:

  1. Hawaii ($606)
  2. Alabama ($895)
  3. Colorado ($1,113)
  4. Louisiana ($1,187)
    *District of Columbia ($1,221)
  5. South Carolina ($1,238)

While the five states with the most expensive annual property tax are:

  1. New Jersey ($5,419)
  2. Illinois ($4,942)
  3. New Hampshire ($4,738)
  4. Connecticut ($4,658)
  5. Vermont ($4,135)

Texas is just outside of the top five. So, does this mean that Texas has really high taxes and is too expensive of a place to live? The short answer is no. Property taxes are just one factor of the cost-of-living in any given state. It does mean that high property taxes are a burden that Texans uniquely have to deal with, however.

Property Taxes are NOT the Only Taxes

Despite the fact that Texas has one of the highest property tax rates in the country, it is important to remember that property taxes are not the only type of taxes that get assessed. In fact, according to WalletHub Texas ranks 29th on a list of the states with the highest overall tax burden. This means that overall Texas is one of the more affordable states in terms of the total tax burden on its residents. This particular study that was referenced added the total percentage of tax burden for property tax, individual income tax, and total sales and excise tax.

Cost of Living in Texas

There is always more to the story, of course. Taxes are not the only factor impacting the overall cost of living for U.S. residents. According to U.S. News, Texas has the 14th best “cost of living index” among U.S. states. So, just remember that while Texas may have a very high property tax rate, it’s a unique issue that is offset by some less burdensome qualities of Texas living. This is especially true when there are solutions available to deal with your Texas property taxes should you ever find yourself unable to pay them.

Apply for a Texas Loan Online

Are you a Texas property owner that has fallen behind on your property taxes? We feel your pain. Don’t wait for your delinquent tax balance to increase and allow the local taxing authorities to heap on interest, penalties and legal fees. Instead, you can apply for one of our Texas property tax loans that will allow you to get your property taxes paid with zero upfront costs. SimplicitE Tax Loans can pay your taxes now and convert the delinquent tax balance into a payment plan with flexible terms. We’re here to solve your short-term problems and work with you to create a long-term solution.

If you have any questions, please call or text us at (210) 939-2002 for a free quote! SimplicitE Tax Loans is here to help you pay off your delinquent tax balance for property taxes in Texas.

Click here to apply online in five minutes.