08 Jan 2023 Guide to Texas Property Taxes: Understanding Changes, Exemptions, and Escrow Management

Navigating Property Taxes in Texas: Key Changes and Tips for 2023

Understanding your property tax bill is crucial, especially with the significant changes that have occurred in 2023. In this blog, we’ll focus on Texas property taxes, providing insights and tips to help you navigate this complex topic.

The Three Pillars of Your Property Tax Bill

In Texas, your property tax bill is influenced by three main factors: the tax value of your property, the tax rate, and applicable exemptions. With property values on the rise, it’s important to stay informed about how these elements impact your tax bill.

Protesting Tax Values and Understanding Tax Rates

Each May, Texas homeowners have the opportunity to protest their property’s tax value. This is a critical step in ensuring that your property isn’t overvalued. In October, tax rates are published, providing another important piece of information for your overall tax responsibilities.

Positive News: Lower Tax Rates and Increased Homestead Discounts

Despite rising property values, Texas has seen a drop in tax rates in recent years, offering some relief to homeowners. Additionally, the homestead discount in Texas has significantly increased for 2023, providing further opportunities for tax savings.

Escrow Shortages and Overages: What to Do?

If your tax bill differs from expectations, resulting in escrow shortages or overages, it’s important to understand how to address these issues. Mortgage services typically conduct an escrow analysis to resolve such discrepancies.

Action Steps for Homeowners

As a homeowner, you should ensure you’re receiving all the exemptions you’re entitled to. If you notice changes in your property’s value or exemptions, it’s crucial to contact your mortgage service provider to adjust your escrow account accordingly.

Conclusion: Staying Informed and Proactive

Navigating property taxes can be complex but staying informed and proactive is key. If you have any real estate or mortgage finance questions, don’t hesitate to reach out for assistance.