How to calculate real estate taxes on Texas properties ?

14 Replies

Hey guys, how do I calculate real estate taxes on properties in Texas? For instance, if it’s an investment property, are the yearly real estate  taxes 2% of the purchase price? Thank you.

Also when we look to analyze deals,  zillow has been pretty accurate resource for taxes. You can get your percentage based on the previous years value vs taxes. Then calculate the new expected sales price with the same percentage. 

Most county appraisal districts either post the combined tax rate or link to the taxing authorities' websites.  Get the combined tax rate x appraised value = tax liability.  There is no guessing.  Just make sure you are calculating without any exemptions like homestead. 

Originally posted by @Anthony Busby :

Also when we look to analyze deals,  zillow has been pretty accurate resource for taxes. You can get your percentage based on the previous years value vs taxes. Then calculate the new expected sales price with the same percentage. 

 And remove any exemptions, ag, over 65, homestead, etc.

Originally posted by @Anthony Busby :

Also when we look to analyze deals,  zillow has been pretty accurate resource for taxes. You can get your percentage based on the previous years value vs taxes. Then calculate the new expected sales price with the same percentage. 

 Does not it change if its owner occupied vs an income property?

For example, In Florida, if its an owner occupied the Real Estate tat is twice less vs if its a tenant occupied... 

Originally posted by @Eddie L. :

@Mary Jay make sure you are considering Municipal Utility District, MUD and county taxes if the property is located within MUD. At times Zillow only has the county tax estimates for Texas.

Thank you! How do I know if a property is in a MUD? Are all properties in Texas are in a MUD?

Originally posted by @Ethan G. :

Need to remember school district tax too

Thank you!

What would you say a ball park taxes in Texas on a 150K house?

Is there any way to estimate it?

 

Originally posted by @Jerel Ehlert :

Most county appraisal districts either post the combined tax rate or link to the taxing authorities' websites.  Get the combined tax rate x appraised value = tax liability.  There is no guessing.  Just make sure you are calculating without any exemptions like homestead. 

Thank you!

What would you say a ball park taxes in Texas on a 150K house?

Is there any way to estimate it?

Unexempt property taxes in Texas are generally 2-3%.   Many people think the high value cities also have the highest taxes, but from what I see that is not necessarily true.  Probably because they can raise more due to value than due to the rate.

From your question the taxes are not more in a way for owner occupied vs investment properties, except that as owner occupied you might be able to get some discounts...for the homeowner exemption and over 65 or disabled vet exemption or something like that, that are not allowed on investment properties.

Normally you can go on the appraisal district websites and find tax rates.   Just be aware that they are not some magic sites for determining the home values.  I've seen super high values and super low values on the CAD websites and occasionally right on the money....but more often than not they're off....and low.   Plenty of people fight for lower values for example and sometimes they win, but I've only heard of one person thinking their value was too low and going in to fight for a higher value.

As a mortgage broker, I estimate 2.75% on all properties in TX.  Some end up a little higher, some a little lower, but until you know what the homestead deduction is, it is a best guess, no matter how you crunch the numbers with all the local breakdowns and whatnot.  2.75% has been a very good number for me.