Buyers who want to budget their monthly housing payment frequently ask how much property taxes are in Austin. The short answer is property taxes vary based on several factors, so it is hard to say they are a certain percentage in the Austin metro area. School district, utility district, hospital districts and whether or not the property is within the city limits are a few of the factors. As such, Austin property taxes vary quite significantly from neighborhood to neighborhood. That being said, we’ll take a look at the average property taxes in Austin based on recent home sales.
What are the Average Property Taxes in Austin?
If you average the property tax rates for homes that sold in Austin (city limits and/or mailing address) over the past three months (05/23/15-08/21/15), you’ll find the average property tax rate is about 2.42%. If you use the median price of a home in Austin in July 2015, $349,000, you’ll get an average property tax of $8,445/year.
Where Can You Find the Lowest Property Taxes in Austin?
The lowest property taxes in Austin are about 1.87%. You can find that rate in a few neighborhoods in West Austin: Tierra Madrones, Green Park, Seven Oaks and Westview on Lake Austin. One of the reasons property taxes are lower than the average is these West Austin neighborhoods aren’t in the city limits of Austin and therefore do not have to pay taxes to the city of Austin. They are also on city utilities and/or septic, so they aren’t paying for the utility district.
Keep in mind, these are also some of the most expensive neighborhoods in Austin, so from a dollar amount, property taxes are significantly more there than they are if you owned a home that was well below the median home price. If you’re looking for the lowest possible dollar amounts (not lowest tax rate), try neighborhoods that are priced in the low $200,000’s like Anderson Mill, Olympic Heights, Milwood, Maple Run or Texas Oaks.
Where Can You Find the Highest Property Taxes in Austin?
The highest property taxes in Austin are usually between 3-3.4% of the assessed value. Most of the neighborhoods with this tax rate are in the city limits, a utility district and a hospital district. They also tend to be the newer, master planned communities. Some examples include Sweetwater, Rocky Creek, Highpointe and Belterra.
Budgeting for Property Taxes in Austin
One of the biggest mistakes Austin home buyers make is to use the homeowner’s property tax amount to estimate their taxes. Keep in mind, there are several exemptions an owner can file on the property that will reduce their property taxes. Some exemptions even limit the amount the tax assessor’s office can raise the valuation from year to year. If the owner has owned the property for years and qualifies for several exemptions, they could pay significantly less than you will. We always recommend our clients use the property tax rate and list price to budget for property taxes going forward. If the property taxes end up being less, great.
Where Can You Find Homes with Low Property Taxes and Good Schools?
Here is a post we wrote recently where you’ll find Austin neighborhoods with the lowest property tax rates and the best schools.
List of Austin Neighborhoods with the Lowest Property Tax Rates
Here you’ll find our list of Austin neighborhoods with the lowest property tax rates split up by area of town.
Relocating to Austin?
There’s a lot of info to wade through. Trust me, we know! We relocated to Austin from San Francisco about 5 years ago. Our experience was pretty clumsy with very little info available online. Because of that, we vowed to make it easier for people relocating to Austin after us. We’ve learned the Austin area better than any other Realtor and with some info about what you’re looking for in a home and neighborhood, can tell you where to find it. If you’re considering moving to Austin and need some help finding the right home and neighborhood, we can help. Simply fill out our Austin Relocation Survey, email us at info@11OaksRealty.com or call us at (512) 827-8323 to get started. Not quite ready to speak to a Realtor? Check out our Austin Relocation Blog and our Guide to Relocating to Austin for more info.
Considering Buying a Home in Austin?
With over $200MM of residential real estate sold and a combined 58+ years of experience, there isn’t much we haven’t seen or can’t handle. If you’re looking for a Realtor who knows the area, will help you unbiasly evaluate which neighborhood is right for you and negotiate the very best deal possible, we might be the best buyer’s agents for you. For more info about our team and our Austin home buying guidance, check out our Austin Home Buyers section. When you’re ready to talk to a Realtor specializing in buyers, fill out our Buyer Survey, email us at info@11OaksRealty.com or call us at (512) 827-8323.