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

[Nina Hayden]

Did you work with a realtor?  If so you need to talk to him/her to get this information as well as help you protest taxes when time comes.  An experienced agent should know all this and learn how to protest and win. And thanks to dip***** in city property taxes are going up to fund endless spending on crap.  

[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!

[Sam Shirazi]

@Austin Martel thanks a ton !, the assessed values and corresponding tax $$ amount is readily available on zillow. But based on my analysis the assessed value and projected home value usually have a 10-15 K delta but this year/2020 was crazy and probably once in a decade type of growth where people bid 100K over...so would be interesting to see how next year's taxes look like..

[Rick Reeder]

@Sam Shirazi you’ll probably get a nice letter from the tax assessor in the county where you bought, asking you what you paid for the home. As mentioned, TX is non-disclosure, so you can through that in the recycle bin.

[Prash Manohar]

@Rick Reeder, can't the assessor just type property address on Redfin/zillow to find out what was purchase price ? :) 

[Rick Reeder]

@Prash Manohar those are estimates, too.

[Michael Bennett]

Originally posted by @Prash Manohar:

@Rick Reeder, can't the assessor just type property address on Redfin/zillow to find out what was purchase price ? :) 

TCAD went through some drama related to what data they use for assessment in 2019 and how they got it.

https://www.kxan.com/investiga...