A recent research paper written by the Huffines Liberty Foundation analyzed the difference in property tax rates between Texas and comparable states, such as Florida. Don Huffines and Bill Peacock wrote that several websites say the property tax rate on owner-occupied homes is the sixth highest.
Property taxes in Texas have become an elevated issue with booming metropolitan economies driving home values up, leading to a $27 billion surplus that some believe should be used to cut property taxes. Newly re-elected Gov. Greg Abbott has supported the use of those surplus funds to alleviate property taxes stating in a recent tweet, “We will use much of it to deliver the largest property tax cut in Texas history.”
Texas’ median effective residential property tax rate in 2022 is 1.81%, according to TaxRates.org. The median effective rate measures the percent of a home’s market value that is collected by taxing authorities. Any tax exemptions on the property are figured into the rate.
According to TaxRate.org, Williamson County property tax rate is 23% higher than the state average at 2.22% of home value, which is 2.29 times higher than Florida’s median rate. The real dollar cost in property taxes for Williamson County was $11,438.
Huffines Liberty Foundation’s paper “Texas Property Taxes: A State-to-State Comparison” made the argument that Florida and Texas are similar in population economic growth and neither have income tax. The average property tax for the largest 10 counties in Florida is 1.98% while Texas’ top 10 average 2.42%. The top five county average difference margin is similar with Florida’s at 2.05% and Texas’ at 2.50%.
Texas Comptroller Glenn Hegar estimated this past summer that record tax collections would result in a state budget surplus of about $27 billion going into next legislative session.
The Texas School Coalition reports that recapture now removes $3 billion per year from Texas school districts, tripled from 10 years ago. The coalition reported that when the state takes money out of local communities through “Robin Hood” recapture, those tax dollars do not necessarily go to lower-income school districts but are used to balance the budget.
