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. Just how much are property taxes in Austin? The tax rate in Austin usually ranges anywhere from 1.8%-3.3% of your home’s assessed value and are due by January 31st for the previous tax year. Curious about average property taxes? Here is a post we wrote about the average property taxes in Austin.
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.
Property Tax Exemptions
There are a few exemptions that will help to reduce your property taxes. The most popular is the Homestead Exemption, which you can claim on your primary residence. The Homestead Exemption sets a ceiling for how much the assessor can raise your assed value every year and gives you a discount on certain tax bills. Other exemptions include disabled veterans, over 65, disability and surviving spouse. Check with your local county to determine which exemptions you qualify for.
When Can You File Exemptions?
You can file your exemption January – April of the year following the year you bought the house. So, you must own the house by 12/31 in order to file your exemptions between January – April to apply to the following tax year. Filing the exemptions are free, so no need to pay someone to do it. You can mail the form in some counties and others, like Williamson, allows you to complete it online.
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.
Looking to Relocate to Austin?
We can help! We relocated to Austin from San Francisco about 10 years ago and love Austin. Our buyer specialists know the area well and can help you find the best Austin neighborhood for you and your family. Check out our Guide to Relocating to Austin for more tips. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.