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Texas home with tax forms, keys, and calculator in front of a DeSoto neighborhood house

What to Know About Property Taxes in DeSoto, TX

August 15, 20254 min read

What to Know About Property Taxes in DeSoto, TX

By Steven J. Thomas

Texas home with tax forms, keys, and calculator in front of a DeSoto neighborhood house

Introduction
If you own a home in DeSoto, Texas, understanding how property taxes work isn't optional—it's essential. This guide breaks down how your taxes are calculated, when they’re due, what exemptions are available, and how to plan ahead.

Looking to buy or sell in DeSoto? Download the Lone Star Living App now for tax insights, home value trends, and local listings.

Key Takeaways

  • Property taxes fund schools, police, fire, and public services.

  • DeSoto's effective tax rate is around 2.4% (as of 2025).

  • You may qualify for homestead, senior, or disability exemptions.

  • Protest deadlines usually fall around mid-May.

Neighborhood Spotlight: How Taxes Vary Across Dallas Suburbs
DeSoto offers more affordability than nearby suburbs like Cedar Hill or Grand Prairie. While all use Dallas County Appraisal District (DCAD) valuations, local tax rates vary slightly.

In newer communities like Stillwater Canyon or Silver Creek Meadows, homes built by major builders like DR Horton may appraise higher due to new construction premiums.

Planning to buy new construction in DeSoto? Visit our New Construction Home Guide to understand how taxes affect your monthly costs.

Local Market Trends (2024–2025)
As of mid-2025, the median home price in DeSoto is $331,000 (source: NTREIS, July 2025). Home values are up 4.1% from last year. Higher home values mean higher assessed values unless you qualify for a cap under the homestead exemption.

For buyers, our Rebate Program helps offset tax and closing costs.

Cost Breakdown: Understanding Your Tax Bill

Your property tax bill in DeSoto includes:

  • City of DeSoto: Funds roads, public safety, and city staff.

  • Dallas County: Oversees public health and regional infrastructure.

  • DeSoto ISD: The largest portion, funding local schools.

  • Park and Utility Districts: May apply in newer neighborhoods.

Taxable value = Appraised value - exemptions

Effective rate in 2025: ~2.4%

Example: A $330,000 home with a $40,000 homestead exemption = $290,000 taxable. Estimated tax: $6,960/year

Want to get pre-approved and understand your full payment? Start here: Get Pre-Approved

Builder and Community Insights
In DeSoto, builders like First Texas Homes, Bloomfield Homes, and DR Horton are active in neighborhoods such as Mockingbird Hills and Hidden Creek. These areas may be subject to MUD (Municipal Utility District) fees or special assessments that show up on tax statements.

Attend our New Construction Webinar to understand how builder incentives and tax rates impact your buying power.

Financing, Mortgage Escrow & Incentives

If you're financing a home, your lender likely escrows property taxes—collecting a portion each month. Expect escrow adjustments if appraisals rise.

Incentives from builders sometimes include tax coverage for the first year. Ask before signing. Use our Home Seller Score to evaluate timing if you're planning to sell before tax reassessments hit.

Mini How-To: File a Property Tax Protest in DeSoto

  1. Review your DCAD value notice.

  2. Collect evidence: comps, photos, prior valuations.

  3. File protest online or in person by May 15.

  4. Attend the hearing or accept ARB offer.

  5. Track results on your DCAD account.

Conclusion
Whether you own, plan to buy, or are prepping to sell in DeSoto, property taxes impact your budget and equity. Stay ahead by knowing your exemptions, protesting unfair valuations, and calculating taxes into your full payment.

Use our Home Seller Checklist or explore Home Selling Options to time your move around property tax cycles. And if you're buying? Download the Lone Star Living App now to calculate local costs by neighborhood.

You're Always Home With Refind Realty!

FAQs

1. When are property taxes due in DeSoto?
Bills go out in October. Payment is due by January 31 each year.

2. How can I lower my DeSoto property taxes?
File for exemptions like homestead or over-65. You can also protest if the valuation seems high.

3. What is the DeSoto property tax rate in 2025?
Roughly 2.4%, though exact rates depend on your location and district.

4. How do I protest my property taxes in Dallas County?
Submit a protest to DCAD by May 15. You can do this online with evidence.

5. Do taxes increase if I renovate?
Yes, if the upgrades increase your home’s appraised value.

6. Are new construction homes taxed differently?
No, but initial valuations may be lower during the construction year.

7. Can I deduct Texas property taxes on federal returns?
Yes, up to the IRS SALT cap of $10,000 if you itemize.

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Owned and Operated by Thomas & Thomas Financial Group, LLC

Steven J. Thomas

Steven J. Thomas has been in the financial services industry for the past 19 years and started my career as a Financial Planner for American Express Financial Advisors. I entered into banking with JP Morgan Chase as personal banker in 2003 and was promoted several times up to Small Business Specialist. I earned multiple Million Dollar Club awards and was ranked in the top 5 Small Business Specialist before I branched out in 2005 to start my own Financial Management Company. I ran a successful company before family circumstances lead me to Wachovia Bank in 2008 where I worked as a Senior Financial Specialist. As a Sr. Financial Specialist; I was responsible for the P & L and revenue growth of my banking center. The elimination of my role thru a bank merger lead me to BBVA Compass. I have held various leadership roles at BBVA Compass including Personal Relationship Manager, Branch Retail Executive, Workplace Solutions VP, and his current role as a Retail Manager. As the Regional Workplace Solutions VP, I was responsible for the strategic, tactical, and execution of Partnership Banking relationships, promotion and activity with corporate and non-profit companies in my footprint. I was responsible for the acquisition production for three districts, which includes 51 banking centers and over 300 employees. In May of 2014, I joined the team at Refind Realty and became one of the managing partners in mid-2015.

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  • 167 Properties Sold

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I used this realtor and it was a great experience. He was patient and very helpful with our journey. He also helped us find a great lender with little hassle on the process, also got us approved for well above the market of our original home so we were able to get more house with a lower mortgage rate. So to anyone who is interested in buying a home take my advice give Steven a call. It’s worth it 😁

Bryant Loring

Steve was absolutely amazing! Everything was easy! Very professional in all aspects. Punctual, responsive, and diligent. He goes above and beyond to ensure you get to see as many homes as you’d like no matter the location. Not only was he knowledgeable about home buying, he also has a resourceful network for new home owner needs. I recommend Refind Realty to everyone!

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Ask Us Anything

Frequently Asked Questions

Why do you need a Realtor?

When buying or selling a home, there are so many options…which can also present a lot of obstacles. Laws change, forms change, and practices change all the time in the real estate industry. Because it’s our job to stay on top of those things, hiring a realtor reduces risk, and can also save you a lot of money in the long run.

When you work with me as your Realtor, you’re getting an expert who knows the area; knows how to skillfully guide your experience as a seller or buyer; can easily spot the difference between a good deal and a great deal. My job is to translate your dream into a real estate reality, and I work hard to earn and keep my business. This also means earning your trust: When you work with me, you’ll be working with a realtor who looks out for your best interests and is invested in your goals.

Which loan should you choose?

There are two different types of loans conventional loans and government-backed loans. The main difference is who insures these loans:

1 - Government-backed loans (FHA, VA and USDA):

(a) - Are, unsurprisingly, backed by the government.

(b) - Include FHA loans, VA loans, and USDA loans.

(c) - Make up less than 40 percent of the home loans generated in the U.S. each year.

2 - Conventional loans

(a) - Are not backed by the government.

(b) - Include conforming and non-conforming loans (such as jumbo loans).

(c) - Make up more than 60 percent of the loans generated in the U.S. each year.

What is the difference between FHA, VA and USDA loans?

1 - FHA LOANS:

FHA loans, which are insured by the Federal Housing Administration, are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment of as little as 3.5 percent and a credit score as low as 580.

FHA loans are often called “helper loans,” because they give a leg up to potential borrowers who may not be able to secure one otherwise. For this reason, FHA loans have maximum lending limits, which are determined based on housing values for the county where the for-sale home is located.

Because the agency is taking on more risk by insuring FHA loans, the borrower is expected to pay mortgage insurance both at the time of closing and on a monthly basis, and the property must be owner-occupied.

2 - VA LOANS:

VA loans are backed by the Department of Veterans Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100 percent financing, meaning VA borrowers are not required to make a down payment.

Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

3 - USDA LOANS:

You may also hear about USDA loans, which are backed by the United States Department of Agriculture mortgage program. USDA loans are intended to support homeowners who purchase homes in rural and some suburban areas. USDA loans do not require a down payment and may offer lower interest rates; borrowers may have to pay a small mortgage insurance premium in order to offset the lender’s risk.

What’s a conventional loan? Understanding what it means to be conforming and non-conforming

Buyers who have a more established credit history and a larger down payment may prefer to apply for a conventional loan. These loans may offer a lower interest rate and only require the home buyer to purchase monthly mortgage insurance while the loan-to-value ratio is above a certain percentage, so a conventional loan borrower can typically save money in the long run.

Conventional loans are divided into two types: Conforming loans and non-conforming loans.

1 - CONFORMING LOANS:

Conforming loans are those that meet (or conform to) predetermined standards set by Fannie Mae and Freddie Mac — two government-sponsored institutions that buy and sell mortgages on the secondary market. By selling the loans to "Fannie and Freddie," lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

The main standard for conforming loans is that the amount borrowed must be under a certain amount; in Alaska, a single-family home loan must be under $647,200 in order to be considered conforming.

Properties with more than one unit have higher limits.

2 - NON-CONFORMING (JUMBO) LOANS:

But what happens if a borrower wants to borrow more than the Freddie- and Fannie-approved loan amount? In this case, they would have to apply for a “jumbo loan,” which is the most common type of non-conforming loan.

Because the lender cannot resell the jumbo loan (or any non-conforming loan) to Freddie Mac or Fannie Mae, jumbo loans are considered to be riskier than a conforming loan. To protect against this risk, the bank will typically require a higher down payment; the interest rate on a jumbo loan may also be higher than if the same borrower applied for a conforming loan.

What kind of rate should you choose?

Rate types: Fixed-rate vs. adjustable-rate mortgages.

In addition to the loan type you choose, you’ll also have to determine if you want a fixed-rate mortgage or an adjustable-rate mortgage (ARM). A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low-interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate on an ARM can sometimes be locked in for different periods, such as one, three, five, seven, or 10 years. Once the introductory period is over, the interest rate typically readjusts annually.

Office 1229 E. Pleasant Run Ste 224, DeSoto TX 75115

Call :(713) 505-2280

Site: www.stevenjthomas.com

Owned and Operated by Thomas & Thomas Financial Group, LLC