As home prices have risen, property tax totals around the country have soared. In DFW, single-family homeowners shelled out more than $11 billion last year.
Coming soon to your home mailbox: The annual property tax appraisal.
Other than an audit letter from the IRS, nothing the U.S. Postal Service brings to your door is more dreaded than the annual estimate of your home’s tax value.
With North Texas housing prices up by 130% in the last decade, residential property taxes have soared. The average Dallas-Fort Worth homeowner paid about $6,100 in property taxes in 2022, according to estimates from researchers at Attom Data Solutions. Nationwide, the average single-family tax bill last year was $3,901.
Last year, DFW homeowners shelled out a record $11.3 billion in property taxes, according to Attom Data. Total single-family tax payments have grown by almost a third in DFW since 2016.
Nationwide, owners of single-family homes were charged a whopping $339.8 billion by the tax man in 2022.
“Property taxes continued their never-ending climb last year, with wide disparities continuing from one area of the country to another, connected to varying costs, services, and tax bases,” Attom CEO Rob Barber said in a newly released report. “This year, local governments and school systems will face even greater challenges keeping taxes in check, given rising inflation rates and a growing number of commercial properties that could be eligible for tax reductions after suffering a surge of vacancies during the pandemic.”
The Texas Legislature is working on bills that would give the state’s residents property tax “relief” that will add up to a few hundred dollars in savings a year.
DFW ranked fourth nationally in its total property tax haul in 2022. Only New York, Los Angeles and Chicago had higher totals.
Among North Texas counties, Dallas County recorded the largest home property tax total – almost $3.5 billion last year. Collin County homeowners had the highest average annual tax bill of $7,590, Attom Data reports.
DFW has the sixth highest median residential property tax burden among major metro areas in the nation, according to a new study by Construction Coverage. Houston and San Antonio were also in the top 10.
Texas homeowners pay a larger property tax than residents in metro areas with state income taxes.
“Huge gaps in average tax bills around the U.S. remain in place,” Barber said. “Those disparities are heavily connected to differences in local government and school services, public employee wages, economies of scale between large and smaller towns and the amount of commercial properties that help shoulder the local tax burden.”
Even if DFW home prices stall, don’t expect property tax increases to halt. Texas taxing districts can only increase the tax bill by 10% a year but can continue to raise rates over time to reach appraised values.
Source: Dallas Morning News