Help on property tax calculation

[Sam Shirazi]

Hi All,

So I just closed on a property in Austin (needless to say had to overpay to outbid) but wanted to ride the appreciation over next 3-5 years with atleast break even strategy for CoC.

I am a bit worried on property taxes so need some clarification from folks on BP. So this particular area has a tax rate of 2.1%...the assessed value of the home in 2020 was 226K $, but the home was listed for 275K and I ended up paying 302K to get it. So for 2021 onwards will my property taxes be 2.1% of 302K?

I also heard property taxes keep climbing up but rents dont go up to offset it. How are investors dealing with this situation?

Thanks

[Austin Martel]

Congratulations on your closing! Your new property has an assessed value that it is taxed on. This value is independent of the price that you paid for the property (assessed value is usually lower). Texas is a non-disclosure state so the sale price is not a matter of public record. The Travis County (TCAD) or Williamson County Appraisal District (WCAD) will have your property's assessed value on their websites. All you would need to do is search your property by its address and the assessed value is on the first page.  

Assessed values are going up so you can expect your property taxes to climb every spring. The second page has the assessment value history so you can get a rough idea of what your assessment might be next year. This is important because you can then prepare for increased taxes in advance based on historical data. Like Nina said, you should talk with your agent (if you have one) and they should already have this information on hand. I hope that helps and congrats again!