Commentary: How Property Taxes Work - Texas Scorecard

It’s that time of year for cities and counties across Texas to tell you how wonderful they are for lowering your property tax “rate.”

Don’t be snowed!

The tax “rate” is a meaningless number on its own. How many rates do you have in your bank account? How many loaves of bread can you buy with a rate? How many rates is it going to cost to put your kid through college?

That’s right: zip. The world runs on cold, hard cash. And, as you can see from this chart of Plano home values and city tax rates for the last five years, a reduction in the “rate” can still mean a tax increase.

I’m very proud to say that both the City of Plano and Collin County will bring you the Effective Tax Rate/No-New-Revenue Rate for 2019-20, meaning that on average, your actual city and county property taxes—in dollars—will not increase*!

*Your mileage may vary. The tax calculation is done across the whole city or county, so individual home value changes (and protest success) may mean your taxes go up a bit or down a bit or stay the same.

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