Question 1: How do property taxes compare between different counties in Texas?

 

Last year when we talked about property taxes, Collin County was the most expensive in Texas. But new data from the Tax Foundation shows that in 2023, Travis County families paid a median tax of $7,487 - the highest in Texas.

 

It varies a ton based on what county you live in. Out west in Hudspeth County or Culberson County, the median payment is less than $750. There aren’t many states where your property tax payment changes by that much depending on what county you’re in.

 

 

Question 2: How does that compare to other states?

 

On average Texas homeowners are paying 1.36% of the value of their homes in property taxes. That’s the seventh highest in the country.

 

And Travis County’s median payment of $7,487 is also one of the highest in the country. If you look on a map, the closest county with property taxes that high is near Chicago.

 

That’s part of the reason why the Tax Foundation has Texas ranked #40 in the country for “property tax competitiveness.” According to their report, Texas’s property tax laws are more unattractive for families and businesses than almost anywhere else in the country.

 

 

Question 3: How will the new property tax relief package change the numbers?

 

The law Gov. Abbott signed this week will send money to school districts to help them lower property taxes. And it will change the Texas Constitution to raise the homestead exemption, if voters approve that this fall.

 

Those changes are expected to lower the average property tax bill in Texas by almost $500.

 

It’s a good start - but it might not be enough for areas like Travis County with high property values.

 

Remember the stat I just shared with you about how the closest county with property taxes as high as Texas is near Chicago? That will almost definitely still be true even after the tax relief takes effect. Travis County’s property taxes would have to go down about $3,000 to be on par with city centers in nearby states like Colorado and Kansas.

 

Republicans in Maine want to eliminate property taxes for seniors over 65 years old who have lived there for 10 years, but that seems unlikely to pass in the Legislature. Wyoming passed a similar law that’s a bit less dramatic: seniors over 65 get their property tax cut in half if they’ve lived there for 25 years. 

 

The Montana governor wants to raise property taxes on second homes and Air BnBs so taxes can be lowered for other houses.

 

Georgia, Alaska, Vermont and more are all considering raising sales taxes and using the money to offer more property tax relief.