Moving to Spring TX? 5 Things you NEED to know about real estate taxes.
Spring Texas real estate taxes are HIGH. Texas has no state income tax which is the good news. The bad news is our real estate taxes are HIGH. It’s through our real estate taxes that we pay for public services including the schools, the junior college, emergency medical services, flood control, county, and the mud/water services.
Three taxing authorities. We have three taxing authorities which are the county, the school, and the mud (Municipal Utility District). Spring Texas is located in two counties, Harris County and Montgomery County. There’s about a $0.13 difference between the tax rates of Harris County and Montgomery County. Spring Texas has three public school districts. The school districts are Spring, Klein, and Conroe. Spring school district has the highest tax rate at $1.38 and Conroe has the lowest school district tax rate of $1.21 for the tax year of 2020. On a $300,000 property value, a house in the Spring school district will cost you $500 more in annual taxes than a house in the Conroe school district. The third taxing authority is the MUD (Municipal Utiltiy District). There are numerous MUDs serving the Spring Texas area and their rates vary from $0 to $1.50 per $100 of tax assessed value.
Newer subdivisions have highter tax rates. Our newer Spring Texas subdivisions have the highest property tax rates. This is because of the MUD tax. The MUDs put in the water / sewer infrastructure for our subdivisions. The MUDs raise bonds to cover the cost of the infrastructure. The bonds are then paid back by homeowners in the form of a MUD tax. As the bonds are paid back, the MUD tax rate decreases. As a homebuyer, you have to decide whether a higher tax rate is a trade off you are willing to make in exchange for a new construction home in Spring Texas.
Actual taxes higher than online taxes. The actual property taxes may be higher than the tax amount shown on real estate websites. Since Spring Texas real estate taxes are paid in arrears, the tax value shown on real estate websites are last years taxes. On January 1st of the tax year, the county (Harris or Montgomery) establishes the tax assessed value of the property. In the September / October timeframe the tax rates are established. The tax bills are mailed in the November / December time frame. In addition, the taxes shown on real estate websites are before any exemptions that may be on the property.
Reductions in taxes available with exemptions. You may be eligible to reduce your Spring Texas real estate taxes by applying for an exemption. Homestead, over 65, disabled vet and surving spouse of a disabled vet are available exemptions. Applying for exemptions is easy as all it takes is the completion and filing of a two page form with the appraisal district of the county that the home is located in. There is no charge to file for the exemption. Once the exemption is granted, it remains with the property during your ownership of the home. There are specific times during the year in which you can apply for an exemption. Read: How to file for a homestead exemption in Texas
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