How Property Taxes are Paid in Texas

Transcript

Hello, this is Scott Dill with Texas Home Loans. We’re here to talk about taxes being paid in Texas and how it’s opposite of what you think. If you’re not familiar with property taxes in Texas, you might be surprised to hear property is paid in arrears. What that means is December of that year pays the previous.

In its entirety. So after the year’s over, you pay your taxes. So when you’re buying a home, let’s say you’re buying a home in the middle of the year, the seller will pay you back six months worth of taxes that because they lived in their tax free. And then you’ll pay those six months up front to put in your escrow account.

Typically, if you choose to do an escrow, So where some states you pay your taxes in January for that year, Texas waits until December of that year. So taxes in 2023, property taxes will be due December of 2023. It’ll cover the previous year. It’s a little bit different. Some might call it logical, whatever, but that’s how it is.

And just so you know, that’s a, can be a surprise for some people. They say, oh, I didn’t know how the taxes were being paid. Well, this, and, and we can go over it in detail as well. With some charts and things like that. So you can see exactly when your tax are being paid, how much it will be. You’ll, the millage times the appraised value minus the homestead exemption is gonna determine the amount.

And that’s we can go over that as well. So you can call me and we can touch base on this. Hopefully that helps answer the question. All taxes are being paid in Texas for your purchase. As. You can visit us. Visit us@texashomeloans.com and we have plenty of other educational videos to help you with your home purchase.

Thanks.