Harris County Commissioners Court raised property taxes by 8% for this year due to the disaster declarations from this year. It's potentially another $160 for the average home with homes worth $400,000. The change will take effect October 1st, increasing taxes to 43 cents per every $100 of valuation on a home.
The county typically has to put any tax hikes above 3.5% before voters. The disaster declaration allowed an exception, thanks to state law. The tax increase will pay for damages sustained during storms such as Hurricane Beryl and the derecho. It's also supposed to go towards the next natural disaster.
The tax increase has been met with mixed emotions, but it is reportedly only temporary. According to Daniel Ramos, the Harris County budget director, property taxes will go back to their normal rates in the Fiscal year 2026.
Managing Property Tax Hike
Homeowners can take a number of steps to prepare for and manage a property tax increase, making sure they are financially equipped to handle the added expense. Here are some key strategies to consider.
Understand How Property Taxes Are Calculated
Begin by learning how your property taxes are calculated. Property taxes are calculated using the assessed value of your home and the tax rate determined by your local government. If your home's value rises, so will your property taxes. Reviewing your property tax bill will help you understand the particular components that contributed to the increase, allowing you to plan properly.
Budget for Property Tax Increases
Planning ahead is critical. When you detect growing home prices in your region or hear about local government tax increases, make adjustments to your household budget to account for a potential property tax hike. Setting aside additional funds can help lessen the blow when the tax bill arrives. You can also utilize online property tax estimators to forecast future increases based on existing trends.
Refinance or Modify Your Mortgage Escrow Payments
If your mortgage includes an escrow account for property taxes, any increases in taxes would most certainly result in a larger monthly mortgage payment. Contact your mortgage lender to find out how much your payments may increase. If necessary, you might look into refinancing options to reduce your overall monthly payments, helping to offset the tax rise.
Plan for Long-term Increases
Property taxes typically grow over time as home values rise and local government requirements shift. If you intend to become a long-term homeowner, keep these prospective increases in mind when making your financial plans. This can assist you avoid getting caught off guard by unexpected hikes.
Conclusion
Homeowners can better manage property tax increases if they understand their assessment, appeal faulty valuations, and budget efficiently. Additionally, looking into exemptions and altering mortgage escrow payments can bring some financial assistance.