why are property taxes so high in texas

This is a question that we often get… “why are my Texas property taxes so darn high?” Well, we’re in Texas, everything in Texas is bigger… right? Besides, where else can you get a 72 ounce steak and all the fixings’ for free if you’re able to put it down in under an hour?

Here is a tidbit from an article in USA Today from May of 2019.

Overall, the effective property tax rate for homeowners is 1.2% in the U.S. On a median home of $178,600, that’s an annual tax bill of $2,149. Eighteen states have effective rates that are the same or higher than the U.S. rate, while 32 states and the District of Columbia have lower rates.

Texas Property Taxes Compared

With that in mind, our great State of Texas is ranked with the 6th highest property taxes in the United States at an average of 1.9%. This is only eclipsed by Wisconsin, Connecticut, New Hampshire, Illinois and New Jersey which holds the coveted top spot at a whopping 2.35%. You may say, “well my property taxes are much closer to 3% and I live in Texas!!!” Keep in mind that this is the aggregate tax rate that is levied for all properties across the State of Texas. This includes properties that are not subject to certain taxing jurisdictions like many rural properties scattered across a very large state.

Compare that to the median tax rate in California of 0.81% and it may feel like we’re drawing the short straw at the local tax office. USA Today put’s it in pretty good perspective, however.

Take California and Ohio. In Ohio, the tax property rate is the 12th highest in the country at 1.56%. A median house in Ohio – valued at $129,900 – brings in $2,032 in property taxes. But in California, the tax rate is much lower at 0.81% – the 34th lowest in the U.S. – but the median home there (valued at $385,500) raises $3,104 in property taxes.

Wait, You Don’t Need to Leave

So, if you’ve decided in the 45 seconds it took to read this that you’re ready to pack up and move to California…not so fast. Good luck finding anything even close to as prestigious as your homestead there for a fraction of the cost. Also consider that you will be paying state and local income taxes, a huge cost of living increase, fighting through ridiculous traffic and a severe lack of authentic Tex-Mex and BBQ to boot.

While none of us have any real semblance of control over property tax rates and the jurisdictions that levy them, the one thing you can do is make certain that your property values are fair and equitable. You would be amazed at what a small investment of your time speaking with a property tax consultant can do for your bottom line. I would love to talk to you personally to discuss how we could possibly save you thousands by representing you at the appraisal district.

Ryan L. Due
Director of Marketing