What You Should Know About DFW Suburb Property Taxes 2018

With so many DFW suburbs to choose from, you may be overwhelmed with deciding where to plant your roots. Property taxes are an important factor to consider when selecting your suburb. Find out the top five highest and lowest property tax rates for DFW-area suburbs, as well as factors determining rates and how you may be exempt from some taxes or may qualify for a reduction.

About Texas Property Tax Rates

Property tax rates in Texas are recalculated each year by county after appraisers evaluate the county's properties. The rates are calculated based on the total property value and total revenue needed. Typically, property tax rates do not change drastically year to year. This is the case this year. There are no obvious changes in rates from 2017 to 2018.

Homes are appraised at the beginning of the year, and appraisal review board hearings generally begin in May. 

Texas Property Tax Exemptions

There are a number of exemptions that help lower your property taxes in Texas. The most common is the homestead exemption, which is available to homeowners in their primary residence. It exempts at least $25,000 of a property’s value from taxation.

However, only school districts are required to offer this exemption (other types of taxing districts have the option of doing so). So if your home is worth $150,000 and you receive the homestead exemption, the school district tax rate will only apply to $125,000 of your home value.

Persons who are at least 65 or who are disabled can claim an additional exemption of $10,000. Like the homestead exemption, only school districts are required to offer this exemption.

Important: You may also qualify for reductions by protesting your property taxes before the deadline. Often times, home owners are given appraisals that do not reflect the age or accurate square footage of their home. To learn more about protesting your property taxes, check out our guide here

Before you make any sudden moves, consider the lowest and highest property tax rates of DFW suburbs below:

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Here are the five DFW-area suburbs with the lowest total property tax rates, in order from low to high: 

1. Flower Mound - 2.08%

2. Lewisville - 2.08%

3. Roanoke 2.1%

4. Frisco - 2.18%

5. Plano - 2.18%

Below is a table to show you the break down of the municipal, school, and county taxes that create the property tax total for these communities. 

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To provide you an example, the median of the lower taxed suburbs is Roanoke at 2.1%.

So if you own a home worth about $270,000 (this is about the median sales price for the Metroplex), you will owe $5,670. 

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Keep in mind: Just because these communities are taxes less than other DFW suburbs, does not mean they offer a lesser quality of life necessarily. In fact, many of these towns are improving all the time. Take Lewisville for example. The city is overhauling their Old Town center, renovating schools, and quality restaurants and shops are popping up. 

 
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Here are the five DFW-area suburbs with the highest property tax rates, in order from high to low: 

1. Grand Prairie - 2.92%

2. Rowlett - 2.89%

3. Coppell - 2.71%

4. Irving - 2.68%

5. Richardson - 2.67%

Below is a table to show you the break down of the municipal, school, and county taxes that create the property tax total for these communities. 

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To help put this into perspective, the median of the higher taxed suburbs is Coppell at 2.71%.

So if you own a home worth about $270,000 (this is about the median sales price for the Metroplex), you will owe $7,317. 

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Keep in mind: In some instances, paying the higher property tax may be worth the higher cost. Depending on your family's needs (such as schooling and accessibility), you may find paying the tax feels more like an investment in quality education for your kids. 

Contact us anytime to discuss important factors that you may be unaware of like property tax rates as you select the location of your next home or property investment. Our consultations are always free. It is our pleasure to provide you with helpful and up-to-date info in all your real estate endeavors.

*Sources: Information pulled and adapted from SmartAsset.com and DaveDowns.com