Things To Know About Property Tax Before Buying A Property In Dallas

If one is planning to buy a property in Dallas, the very first thing to understand in depth is the property tax system in Dallas. According to recent reports, all over the USA, the property tax rate in Texas is the highest. Here homeowners have to pay almost 1/3rd amount more than homeowners in other parts of America.  There are some reasons behind the increased rate of property tax in Dallas. Let’s find them out first.

Reasons behind the rise in property tax in Texas

  1.     Texas is most dependent on the revenue collected from property tax

Texas is one such state that doesn’t collect personal income taxes. The sales tax here is comparatively low compared to other states which are about 6.25% on average. However, it can reach up to 8.25% max. As the revenue collected by the government from other taxation sources is less, automatically the burden falls mostly on property taxation. The collection from property tax revenue is used to fund the essential public resources of the state including libraries, communities, road maintenance, emergency services etc.

In the upcoming reforms, the government might think of redistributing the taxation burden among other tax forms. However, if seen rationally, it won’t make much difference as citizens in Texas who do not have to pay income tax today will have to pay it in future.

  1.     Property values are one of the highest in Texas

The property tax of a state depends a lot on the property value of the state. With that said, for the appraisal of any taxable property, the property tax rate is determined based on the value of the property. Therefore, higher the value of the property more will be the property tax implied. For instance, if the property value is 2,50,000 dollars then the property owner needs to pay some 4,933 dollars. Now if the property’s value increases to 275,000 dollars, then naturally the property tax will increase to 5,426 dollars per year. However, if a homeowner or property owner disagrees with the current appraisal value of the property or if he thinks that his property is overvalued, he can lodge a complaint to the property department of the state and ask for a re-evaluation.

  1.     All taxes are set by the local government

Property tax in dallas as well as other forms of taxes are set by the local authorities and not by the state government of Texas. Though this might sound good, as the entire taxation system is handled and set by local authorities, this does not mean that the state government has no role here. For any reforms to be made, the local authorities need to get the bill passed by the state government and this takes a lot of time.


Property tax in dallas is much higher than in other parts of the country. On top of that if homeowners fail to pay the property tax on time, they will get subjected to paying a hefty amount of property tax penalties. As a result not only, they will have to pay the high property tax but also have to pay a hefty amount. To avoid such circumstances, property owners should always get in touch with a property tax consultant and enjoy effective tax relief.