t’s that time of the year where you have or will soon be receiving a property tax valuation for 2023 via mail from your county. This information is also available on your county’s central appraisal website by searching the county name + CAD or central appraisal district.

To help you better understand how this will affect your upcoming tax bill and monthly mortgage payment if you do escrow for property taxes, here is some additional information that you should know when reviewing your property tax valuation.

Property Tax Valuation Review

Watch my video below or keep reading to learn more about reviewing your property tax notification.

• Exemptions are discounts the county gives. The most common is the homestead exemption. This is available when you live in a home. Unlike in prior years this exemption is allowed right after purchase vs a required delay until the following year.
  • For your primary residence do ensure this discount is listed.
  • If your homestead is not listed, a form can be completed on the same county website. This is free to complete. There are third parties that try to have you pay for this service.
  • If you did not have a homestead exemption on the home for a prior year and should have this can be still added. If you call the county, they are generally able to add this exemption to a prior year and send you a refund for the savings.
  • Other exemptions exist such as over 65 and specific military exemptions. Visit your central appraisal district for the full list and applications.
• Market Value is the value that the county has given to your property. This is not the same as what your home is worth or what it can be sold for.
• Assessed Value is the value the county is using to calculate your tax bill. This value accounts for any exemptions.
  • A homestead cap is the main reason this is lower than the market value. In the State of Texas, a 10% limit applies year or year to the assessed value when a homestead exemption is in place (after ownership of 2 years). This is one of the most important reasons to ensure your homestead exemption is filed.
• Tax Protest
  • The county allows 30 days from receipt of the valuation to protest the market value.
  • This can be completed on your own or by hiring a tax protest company.
  • Consider contacting your trusted REALTOR to assign in running comparable sales to possibly help disputing the value.
  • Values can also be disputed based on property condition as well as what other properties in your market are taxed at.
  • For a recently purchased home, ensure the value is not higher than you recently paid for your property. A dispute can be made using your appraisal or settlement statement (I would suggest using the lower of the two).
  • If you wish to hire a tax protest company a vetted resource is Texas Tax Protest
• ​Preparing for a Tax Increase
  • ​Compare your 2022 actual tax bill and your estimated taxes using your 2023 value notification.
  • Calculate the difference between these two figures to determine your increased tax bill.
    • The tax bill is normally paid in December.
    • ​A best practice is to budget to pay this amount in one payment if you are notified of an escrow account shortage.  Some servicers may allow you to pay in this additional amount to your escrow account each month starting now. Ensure you manually pay this to escrow not principal.
    • If the shortage is not paid, an analysis is completed by serving and increased payment options are presented to be paid overtime. These additional funds go to catch up your escrow account. This can increase your monthly payment significantly. By reviewing this now, this sharp an increase can be avoided.

My Team and I are always available to answer any questions or assist in any way, so feel free to reach out!