If you’re thinking about relocating to Austin, or if you have never bought a house, one of the things to pay attention to is the tax rate. The tax rate in Austin usually ranges anywhere from 1.9%-3.1% of your home’s assessed value and are due by January 31st for the previous tax year.
What Factors Affect Your Tax Rate?
Usually the biggest percentage of your tax bill comes from the school district. The city and county also collect taxes as well as any other special assessments (usually in the forms of roads that are being paid for and/or water districts). You can check with the County to see a breakdown of taxes for a specific property.
What is Your Assessed Value?
Your property’s assessed value is what the appraisal district says the property is worth. The goal is to have this value be as low as possible because that’s what your taxes are based on. The lower this value, the less taxes you’ll pay.
Sometimes people get the assessed value confused with the appraised value, but they are not the same. The appraised value is how much an appraiser evaluates your house to be worth. You want this number to be as high as possible. The assessed value is a completely separate figure and really can’t be used for anything but determining how the tax assessor has evaluated it.
How Do I Find the Tax Rate?
When you’re using our Austin home search tool, the tax rate is located towards the end of the listing. The screenshot below shows an example next to the purple arrow.
Consider Property Taxes When Looking at Affordability
Make sure to factor in property taxes when determining how much home you can afford. To give yourself a quick estimate, take the list price and multiply it by the tax rate.