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Why are Property Taxes so High in Texas?


Texas Property Tax is Steep – Here’s Why

Texas is currently the second most populated state in the United States. Only California is more populated. According to the United States Census Bureau there are more than 30 million people living in the state of Texas with 62.4% of all housing units being owner-occupied. That means there are a lot of Texas homeowners and a lot of people paying property taxes in Texas. In our previous blog post, we talked about how Texas property taxes compare to other states. As we mentioned, Texas ranks 45th out of 51 (including the District of Columbia) for the best property tax rate – meaning that Texas has one of the highest property tax rates in the country.

We are Simplicite: Property Tax Loans and one of the most common questions that we hear from people are: why are property taxes so high in Texas? Well, that’s exactly what we will discuss in this article.

There is No State-Wide Property Tax in Texas

That might not sound right when you first read it, but it’s true: the state of Texas has no state issued property tax. In fact, that’s generally the case in most other states as well. It is actually up to local taxing authorities, such as counties, cities, or school districts to determine and impose income taxes. So, while there is no single source of Texas property tax assessment, homeowners in the Lone Star State do still pay property taxes. An examination of a Texas property tax bill will show just that – there will be numerous taxing entities that assess tax against property, and it’s always collected by one or more tax collecting entities.

Local taxing authorities need funds in order to fill their budgets. So, given that Texas is actually quite lite on taxation in other areas, property tax tends to be the way for local governments to secure the revenue that’s required in order to keep state and local government operating.

The Trade-Off for No Individual Income Tax

While Texas has one of the highest average property tax rates in the country, some consider this to be a fair trade-off since the state does not impose any income tax. Even so, steep property taxes wind up becoming a significant burden for many, which is why there is a significant need for property tax loans. All in all, this is one of the main reasons why the property taxes are so high.

Texas Homes Do Not Come Cheap

The lack of income tax is certainly a significant factor in why property taxes are so high. There’s another factor that is extremely prevalent as well though, especially in recent years. This second factor is a bit of a double-edged sword. Your property tax rate is determined in large part by the value of your home. As of late, many homes have gone up in value pretty significantly. That’s a great thing if you intend to sell or otherwise take advantage of the additional equity this produces, but on the flipside… the greater the home value the higher the property tax rate. According to Bankrate the median home sale price in Texas went up by more than 11% from Q3 of 2021 to Q3 of 2022, with an average median home value of $345,000 by that time last year. 

Pay Your Delinquent Texas Property Tax (Or Let Us Do It With a Tax Loan)

If you have a delinquent property tax balance, you need to pay that as soon as possible. Learn more about what happens if you don’t pay your delinquent property taxes. Our mission at SimplicitE is to offer Texas property tax loans online that allow you to pay your property taxes today with zero upfront costs and flexible terms that work for your budget and reduce stress from your life.

Do you have questions about Texas property taxes or our tax loans? Call or text (210) 939-2002 to receive a free quote! Simplicite is here to help you pay off your delinquent property tax balance taxes.

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