Calculating Property Taxes

Austin, like other cities in Texas and other states, relies on property taxes to maintain the roads, make improvements to the city, pay the police and fire departments, and provide a number of other city services. Property taxes, in recent years, have become the highest cost of ownership of a property, after construction and purchase are taken out of the running.

Property taxes are not calculated arbitrarily. The county tax assessor typically uses a number of factors to determine the value of an individual’s property. Some common factors include the sale prices of comparable homes in the area, the value of land, improvements that may have been made to the home or the land, etc.

The property tax rate is often listed as a percentage. It may also be listed as a per millage, meaning per thousand, as opposed to per hundred. To calculate the property tax, the authority will multiply the assessed value of the property by the mill rate or percentage and then divide by 100 if a percentage was used or 1000 if a mill rate was used.

In general, assessments are made up of two components, the improvement or building value and the land or site value. The individual responsible for assigning values to a property and home is the tax assessor. The tax assessor is a public official who determines the value of real property for the purpose of apportioning the property taxes of the district. An appraiser is given the task of determining the value of real property for any purpose. He or she may work for the government or for private industry.

Tax records for each property are maintained and are an important item to examine before buying a home.

Contact an Austin Realtor

If you are considering relocating to the Austin area and would like more information on the tax rate of various areas, contact the Austin realtors of The Carvajal Group at 512-419-7770.