Texas is known for its business-friendly environment and low taxes. However, property taxes can be a significant burden for both homeowners and businesses. Fortunately, there are ways to reduce your property tax bill in Texas. 

1. File for Homestead Exemption

One of the most effective ways to lower your property taxes in Texas is to file for a homestead exemption. This exemption is available to homeowners who use their property as their primary residence. It allows them to exempt a portion of their home's value from property taxes. The amount of the exemption varies depending on the county where the property is located, but it is typically around 20% of the home's value. To apply for a homestead exemption, you'll need to fill out an application with your county appraisal district.

2. Challenge Your Property's Appraisal

Another way to lower your property taxes is to challenge your property's appraisal. Each year, your property is appraised by your county's appraisal district to determine its value for tax purposes. If you believe that the appraised value is too high, you can file a protest with the appraisal district. This will trigger a review of your property's value and may result in a lower appraisal, which will lower your property tax bill.

3. Take Advantage of Tax Exemptions

In addition to the homestead exemption, there are other tax exemptions available in Texas. For example, there are exemptions for disabled veterans, senior citizens, and charitable organizations. If you qualify for any of these exemptions, make sure to take advantage of them to lower your property tax bill.

4. Pay Your Taxes on Time

One way to avoid unnecessary penalties and interest charges is to pay your property taxes on time. In Texas, property taxes are due on January 31st of each year. If you fail to pay your taxes on time, you'll incur penalties and interest charges, which can add up quickly and increase your overall tax bill. By paying your taxes on time, you can avoid these unnecessary expenses and keep your tax bill as low as possible.

5. Consider Hiring a Property Tax Consultant

If you're having difficulty lowering your property tax bill on your own, consider hiring a property tax consultant. These professionals specialize in helping homeowners and businesses reduce their property tax bills. They can review your property's appraisal, identify exemptions that you may be eligible for, and file protests on your behalf. Although hiring a consultant will cost you money upfront, it may be worth it if you're able to significantly lower your property tax bill.

In conclusion, lowering your property tax bill in Texas requires some effort and planning, but it can be done. By taking advantage of available exemptions, challenging your property's appraisal, paying your taxes on time, and hiring a consultant, you can significantly reduce your property tax bill and keep more money in your pocket. With these tips and tricks, you can save money and protect your investment.

Homestead exemptions remove part of your home's value from taxation, so they lower your taxes. For example, your home is appraised at $300,000, and you qualify for a $40,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $260,000.

Senate Bill 2 (Bettencourt/Meyer) provides property tax relief through tax rate compression, an increase in the homestead exemption, and a pilot project limiting the growth in appraised values. For tax year 2023, this will save the average Texas homestead owner over $1,200.

There is a Texas State Constitutional Amendment (Proposition 4 - HJR 2) to vote on in November 2023 regarding this bill.

Texas levies property taxes as a percentage of each home's appraised value. So, for example, if your total tax rate is 1.5%, and your home value is $100,000, you will owe $1,500 in annual property taxes.

Generally, all property must be taxed based on its current market value. That's the price it would sell for when both buyer and seller seek the best price and neither is under pressure to buy or sell.

In a mass appraisal, the appraisal district then classifies properties using a variety of factors, such as size, use, construction type, age and location. Using data from recent property sales, the appraisal district appraises the value of typical properties in each class.

A homestead exemption can save hundreds, if not thousands of dollars (due to the price of the home). For example, a $300,000 home with a $15,000 homestead exemption has a school tax rate of 1.54%, which means the property taxes would be lowered by $231 per year. ($15,000 exemption x . 0154 tax rate = $231 savings).

To qualify for the general residence homestead exemption an individual must have an ownership interest in the property and use the property as the individual's principal residence. An applicant is required to state that he or she does not claim an exemption on another residence homestead in or outside of Texas.

Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualification ends, you must inform the appraisal district in writing before the next May 1st.

Voters in Texas adopted a statewide 10% appraisal cap in 1997.

The 10% increase is cumulative. Therefore, the maximum increase is 10% times the number of years since the property was last appraised. The 10% limitation on a Texas homestead is effective January 1st of the tax year following the first tax year the owner qualifies the property for a homestead exemption.

Property taxes in Texas are so high because that's the price we pay for not having a personal income tax in this state. State tax systems are usually looked at as a three-legged stool — one leg is property tax, the second leg is sales tax, and the third leg is the personal income tax.

The Residence Homestead, Tax Code Section 11.13, is by far the most common property tax exemption in Texas and covers the following exemptions: General Residence Homestead. Age 65 or Older or Disabled. Manufactured and Cooperative Housing.

The assessment date for all property tax in Texas, regardless of property type, is January 1, each year.