Property Tax Calculation... (San Antonio, Howe, Anton: homes, school, taxi)

[Trainwreck20]

Pretty much all properties pay county + school tax, and properties in the city pay city tax. Those three probably make up 90-95% or the property taxes, with various other entities making up the balance. You have to check on the specific location, but in the Austin area, most properties in any of the local cities pay between 2.5 to 2.75%, or a little over four times the $3,700 you have already calculated (~$15,000/year). Homestead exemption will bring that down by ~$1,000 if the county gives a 20% exemption and the city gives a $15k value exemption (these are typical in the Austin area).

County locations will typically save a city tax of around 0.4 to 0.5, or about $3,000 for this scenario.

What county/city is this house in? Some of the more affluent cities actually charge lower rates since they have much higher average property values (e.g., Westlake, just outside of Austin, has a city tax rate of 0.06 compared to austin's rate of 0.44)

[texasdreamin]

What I quoted was for Real County, though I will be looking in other areas, as well. Not decided yet, until I get there and see for myself. Looking for the most beautiful area, west of San Antonio. I won't build the house until later, but when I do, it will be $500-600K. If I can get what I want built for less, at the time I arrive, all the better. I just figured that by then, to get the house I want will cost around that much. I hope not.

[Trainwreck20]

hmmm...I found the leakey ISD tax rate was 1.355 in 2004. It appears that this area may also be on the receiving end of 'Robin Hood', but that may have changed. Anyway, a $600k house with a HS exemption is probably paying about $8k/year in school taxes. Depending on where you are, there is a junior college tax, as well (0.09 in 2002, or $108.00). With that and the county tax, total taxes would run ~$11,000 year. Of course, this doesn't include any rate increases.

[texasdreamin]

Thanks so much. I went to the Real County web site, and that is where I found their new tax rate. I didn't know to go to each individual city, but I'll have to take the time to do that and research more, for better understanding of all of this. $11,000, total, would be okay. I know that it is tax deductable, so it won't be too hard on me. By the time I'm ready to build, it will probably be a couple thousand more. Thanks for all of your time.

[Trainwreck20]

You may be pleasantly surprised, though, at the lack of increase in the school and/or county tax rates. Some of these 'underdeveloped' counties are seeing (or will see) significant increases in their total property values which result in large increases in revenue w/o increases in taxes. Also, not sure how the new school funding will pan out over the next couple of years.....

[texasdreamin]

I hope you're right. What a blessing that all would be.

[etexbill]

In my area school and junior college taxes are included in the tax bill. My home is older but nice, 2000 square feet, nice area, nice town, little crime, great schools and my total tax bill is less than $900 per year. No state income tax. Course I have the senior tax freeze, and the homestead exemption. I am a happy camper.

[texasdreamin]

Ive heard different things on the senior tax freeze. One thread says it doesn't happen and I thought I read that it does. Am I correct in that once a person turns 65, whatever tax rate they are paying at that time, doesn't go up anymore? I get so confused, because I read different info.

[etexbill]

No the tax freeze means that your tax evaluation on your home is frozen. The tax rate can go up but the evaluation of your home remains the same after it is frozen. Sometimes they will try to sneak in a raise in the evaluation but just do a "yankee" gripe to the tax board. I have had to do it a couple of times. A simple "I am old, you can't raise my evaluation" will suffice.

[texasdreamin]

Oh, I see. Finally I've got comprehension. Thank you! I think I like that better.