How do property taxes in Jersey Village compare with other locations within Harris County? Many homeowners do not pay their property taxes directly, they have them paid out of their Escrow Account by the mortgage servicer. Some may not even notice increases in their property taxes unless their mortgage payment is increased in the January-February time frame. Too many homeowners think increases in their property taxes mean that their home is increasing in value and that means they can make a big profit when they sell their home. However, unless you sell your home during a peak period when home sales are very high, you are just paying a higher rent to the taxing authorities during the years you stay in your home.
So, how are your property taxes calculated and why do they vary by taxing authorities? If you are familiar with Harris County Appraisal District – HCAD, then you may realize two property values that they apply to a residential property. Those are “Market Value” and “Appraised Value”. There are a number of factors that affect those values; however, that discussion is not the purpose of this article. The purpose is to discuss how those values are used by the taxing authorities to determine what tax you are required to pay to them. The “basics” of the tax calculation is the same for all taxing authorities, so what are they?
Appraised Value – Exemptions = Taxable Value / 100 X Tax rate = Taxes owed
How are these calculations different between taxing authorities? Different Taxing authorities can provide different amounts allowed for Homestead and Over-65 Exemptions. Those amounts reduce the Taxable Value. Then each Taxing authority sets its own Tax Rate.
Examples:
Harris County – Homestead Exemption amount is 20% of the Appraised Value and the Over-65 (Disabled) Exemption is up to $229,000 with the total exemption amount not to exceed 100% of the Appraised Value. Their Tax Rate = 0.391160 per $100 Taxable Value
City of Houston – Homestead Exemption amount is 20% of the Appraised Value and the Over-65 (Disabled) Exemption is up to $160,000 with the total exemption amount not to exceed 100% of the Appraised Value. Their Tax Rate = 0.561840 per $100 Taxable Value
City of Bellaire – Homestead Exemption amount is 20% of the Appraised Value and the Over-65 (Disabled) Exemption is up to $135,000 with the total exemption amount not to exceed 100% of the Appraised Value. Their Tax Rate = 0.4473 per $100 Taxable Value
City of Pasadena – Homestead Exemption amount is 15% of the Appraised Value and the Over-65 (Disabled) Exemption is up to $50,000 with the total exemption amount not to exceed 100% of the Appraised Value. Their Tax Rate = 0.533677 per $100 Taxable Value
City of Jersey Village – Homestead Exemption amount is 14% of the Appraised Value and the Over-65 (Disabled) Exemption is up to $75,000 with the total exemption amount not to exceed 100% of the Appraised Value. Their Tax Rate = 0.723466 per $100 Taxable Value
The effective taxes in Jersey Village are higher than all of the cities listed above for the average homeowner. This information is taken directly from HCAD with some research.
May 22, 2021