While many homeowners and commercial property owners have experienced “sticker shock” when it comes to their property valuations, where are we in relation to the rest of the country?
Property taxes remain a hot topic, and there was hope for some relief when Governor Greg Abbott called a special session. Alas, property tax reform was nowhere to be seen.
KUT, Austin’s NPR station, recently presented an overview of taxes in the Lone Star State – specifically property taxes. According to WalletHub, the effective real estate tax rate is 1.9 percent – putting Texas 46th highest in the nation.
As most residents know, local governments use property taxes to fund schools, hospital services, emergency services and roads – and state’s who follow a similar pattern generally have a higher-than-average rate.
But that’s just one piece of the pie. According to Forbes’ and their ranking of best and worst states for taxes, Texas was a shining star. In 2016, they calculated the effective tax rate for single taxpayers earning a taxable $50,000 in each state, and Texas came in 5th best. Alaska was number one, followed by South Dakota, Wyoming, and Tennessee. New York was 50th.
While property taxes are hurting a lot of wallets, when it comes to the overall tax picture, Texas is still the place to be.
If you’re a commercial property owner, Southland Tax can help you achieve the lowest reasonable property tax assessment, while reducing the burden of tax administration for all of our clients. Please contact us if we can be of assistance.