I get more questions about this subject than any other. First things first...we have no rule to go by...don't ask "what is the tax rate for Cinco Ranch?"...it does not work that way. As an example, Cinco Ranch has tax rates before exemptions as low as 2.8% and as high as 4/1% depending on the neighborhood you live in within Cinco Ranch!

Let's examine how property taxes work here in the Houston area so that you can have a better idea of what you will pay when you buy.

A. The taxes are based on the CAD(Central Appraisal District)value. The CAD usually uses the price you paid for the home in the first year, and after that they assess each year based on comparable sales in your neighborhood.

B. The tax rates are before exemptions. If you live in the home on January 1 of the tax year, you qualify for a Homestead Exemption (you will need to apply for it). If you are over 65, you qualify for a Seniors Exemption. Each one of the taxing entities will decide how much they will give you as a reduction for your qualified exemptions. The percentage off value will vary depending on the area you live in.

C. The tax rates are based on school taxes, county taxes, MUD (Municipal Utility District) taxes, drainange districts, and flood control areas. You can be taxed by some or all of these entities and, added all together, they make up your TAX RATE.

D. Not long ago, Texas passed Property Tax Relief. This relief has lowered tax rates for Texas home owners by about 15%.

I understand how confusing this tax system can be. I will be happy to take whatever time is necessary to fully explain it ot you. Please do not hesitate to call me or email me with any questions!