When Are Property Taxes Assessed in Texas?

Property taxes in Texas are a local matter, serving as the primary funding source for public services provided by local taxing units, such as cities, counties, school districts, and special districts. These taxes are ad valorem, meaning they are based on the value of property. Understanding the annual cycle of property assessment and taxation is important for property owners.

The Annual Appraisal Process: Key Dates

The process for determining property taxes begins with the appraisal of property value. All taxable property in the state is appraised at its market value as of January 1 each year. This date serves as the valuation date for the tax year, meaning any changes to the property or market conditions after this date generally do not affect the current year’s assessment. Each county has an appraisal district responsible for valuing all taxable property within its boundaries.

Appraisal districts mail a Notice of Appraised Value to property owners around April or May. This notice is not a tax bill but communicates the appraisal district’s opinion of your property’s worth for tax purposes. It provides details such as the property’s description, the appraised value for both the current and previous year, a list of taxing units, and information regarding any exemptions granted. The notice also includes instructions on how to protest the proposed value and the deadline for filing a protest.

Property owners can protest the appraised value with their county’s appraisal district. The standard deadline for filing a protest is May 15, or 30 days after the Notice of Appraised Value was mailed, whichever date is later. This period allows property owners to challenge their property’s valuation if they believe it is inaccurate or too high.

Understanding Your Property’s Appraised Value

Property valuation in Texas is based on its market value, defined as the price a property would sell for under prevailing market conditions, assuming a reasonable time for sale and informed buyers and sellers. Appraisal districts employ mass appraisal techniques to value the large number of properties within their jurisdiction. These methods involve valuing groups of similar properties using standardized procedures. Common appraisal approaches include the sales comparison approach, which analyzes recent sales of comparable properties.

For residential homesteads, a “homestead cap” limits the annual increase of appraised value. This cap restricts the increase to 10% more than the previous year’s appraised value, plus the value of any new improvements. This limitation applies on January 1 of the tax year following the first year the owner qualifies for the residential homestead exemption.

Exemptions remove a portion of a property’s value from taxation, thereby lowering the tax bill. The general homestead exemption reduces the appraised value for school district taxes. Additional exemptions are available for specific groups, such as those aged 65 or older and individuals with disabilities, which can provide further reductions in taxable value. Disabled veterans may also qualify for a tiered exemption based on their disability percentage.

Tax Rate Adoption and Payment Deadlines

Following the appraisal and protest period, local taxing units, including cities, counties, school districts, and special districts, set their tax rates. These adopted rates are then applied to the finalized appraised values to calculate the property tax bills.

Property tax bills are mailed to property owners beginning in October. These bills detail the amount of taxes owed to each taxing unit. Property taxes are due upon receipt of the tax bill, with the primary deadline for payment being January 31 of the year following the tax year.

Taxes that remain unpaid after January 31 are considered delinquent, and penalties and interest begin to accrue on the outstanding amount starting February 1. If taxes remain unpaid, the penalties and interest can escalate, and the property may face a tax lien, which can ultimately lead to foreclosure and sale to satisfy the delinquent taxes.