When Do Local Property Tax Rates Increase or Decrease in Texas?

Here’s what you need to know about local property tax rates in Texas:

• Tax rates are finalized annually between August and September, after property values are appraised and most protests are resolved.
• If local governments miss the September 30 deadline to adopt a new rate, they must use a lower rate that generates no new tax revenue.
• Your tax bill is driven by two factors: the county’s assessed value of your home and the local tax rates. So, your bill may not always change following an increase or decrease in tax rates.
• You can lower your bill by protesting your home’s value or by attending public hearings to voice concerns about rate hikes.
• Gill, Denson & Company is ready to assist with your property tax protest, maximizing your chances of lowering your next property tax bill.

When Do Local Property Tax Rates Increase or Decrease?

In Texas, local property tax rates aren’t set in stone at the beginning of the year. They follow an annual cycle governed by the Texas Property Tax Code. This process, known as “Truth-in-Taxation,” ensures transparency so homeowners know how their taxes are calculated.

Here is how the year typically unfolds:

Late July: most counties certify their appraisal rolls, following any valuation changes from property tax protests.

August to September: local taxing units (such as cities, counties, and school districts) begin the budgeting process. Most taxing units must publicly release their proposed tax rates, budgets, and debt schedules by August 7. Exact dates vary by county, but they will typically hold hearings to receive public input on their proposed tax rates.

September 30: Most taxing units must adopt their final tax rate for the year by this date (or within 60 days of receiving the certified appraisal roll, whichever is later). If they miss the deadline, they must adopt the lower of the “no-new-revenue” tax rate for the current year or the previous year’s tax rate.

October to December: After rates are adopted, tax bills are generated and mailed to homeowners. These bills reflect the final tax rates and appraised values for the year.

November: If a taxing unit wants to adopt a tax rate that exceeds the “voter-approval rate,” it may need voter approval in the November election.

What Does That Mean for Your Property Tax Bill?

Whether local property tax rates increase or decrease, your next property tax bill will be affected. Generally, if your home’s value increases (due to market trends or improvements), your tax bill will likely rise unless you protest the assessment. However, even if your home’s value stays the same, your bill can still rise if local government entities raise property tax rates. Conversely, if local property tax rates decrease to offset rising property values, your bill might stay the same or even decrease, despite your home being worth more.

Understanding how property tax rates affect your tax bill enables you to better plan for the future.

How to Lower Your Next Property Tax Bill

Aside from attending public hearings to give your input on proposed tax rates, you have the right to protest your property taxes. You are essentially arguing against the county’s assessed value of your property. Gather detailed evidence to support your case, such as recent comparable sales, photos of defects or repairs, or clerical errors. You may increase your chances of a successful protest and reduction by working with an experienced professional. A reduction in the property’s value will lower the overall taxes due.

It’s important to know that you can only protest the value of your property; you cannot protest tax rates.

Where to See Rate Changes

Tax transparency is required by Texas law. You don’t have to wait for your property tax bill to see if rates are changing. You can view these details in the searchable database maintained by your county’s appraisal district or individual taxing units. This is also where you can see if a local government entity plans to raise its tax rate and its public hearing schedule.

Take a look at some of our previous blogs to read more about where your property taxes go and why local tax rates change.

Understanding local property tax rates and the annual adoption cycle empowers you to be a more proactive homeowner. Whether you’re facing a high appraisal or a rate increase, knowing how to protest and where to find information can save you thousands of dollars.

If you’re unsure how to navigate the protest process, Gill, Denson & Company is here to help. Our experts specialize in both residential and commercial property tax protests across Texas.