Property Tax Basics

Property Tax Basics with Top Mortgage lender in Dallas

Property Tax Basics

Paying property taxes is part of home ownership and the taxes help fund the city, county, schools, and hospitals. Taxes are either paid directly to the taxing authorities or via an Escrow Account. When purchasing a home the property taxes that are paid at closing are classified as Prepaids in the mortgage Closing Costs.

Property Tax Rates

The typical property tax rate for homes in the Dallas Ft. Worth metroplex typically range from 2.0% to 2.9%. We will typically use 2.3% to 2.5% for our estimates. As an example, the Dallas County tax rate breakdown for 2014 was:

  • City = $.797
  • School = $1.282
  • County = $.253
  • College = $.125
  • Hospital = $.286

When added together these total $2.74 which means that for every $100 a homeowner pays $2.74 in taxes (or $.0274 for every $1).  For example, someone that owns a $300,000 home would pay $8,220 in property taxes ($300,000 x $.0274).

How To Lower Your Property Taxes

There are three (free) ways you can lower your property tax obligations:

  1. File for any applicable Property Tax Exemptions
  2. Contest Your Property’s Value
  3. Vote in local elections to lower your tax rates

How To Determine Property Taxes

The easiest way to determine the property taxes for a property is to visit the County Appraisal District websites for more information. The most common CADs for North Texas as listed below; to find your county we suggest you Google “X County Appraisal District” where “X” is the name of your county.

Denton County

Denton CAD Home Page

Denton Homestead Form

Denton Tax Calculator

Denton Tax Rates

Tarrant County

Tarrant CAD Home Page

Tarrant Homestead Form

Tarrant Tax Calculator

Tarrant Tax Rates

Please call us if you have any questions about property taxes, escrows, or prepaids – we’re here to help.