What You Need to Know About
Property Taxes in Dallas

If you’re buying or selling a home in Dallas, property taxes are a major part of the conversation. As a local real estate agent, I help clients navigate property tax questions every day — and I’ve seen how a clear understanding can save you money and stress.

In this post, I’ll break down the essentials of Dallas property taxes so you can plan ahead with confidence.

1. How Are Property Taxes Calculated in Dallas?

Property taxes in Dallas are based on your home’s appraised value and the local tax rate set by various taxing authorities — including the city, school districts, and county.

Here’s the formula:
Appraised Value × Total Tax Rate = Property Tax Due

For example, if your home is valued at $350,000 and your combined tax rate is 2.5%, your annual property tax bill would be around $8,750.

Tax rates can vary slightly depending on your neighborhood or school district, so it's important to know exactly which jurisdictions apply to your property.

2. Who Sets the Tax Rates?

In Dallas, several entities have a say in your total tax rate:

• City of Dallas

• Dallas County

• Dallas ISD or other school districts

• Hospital, college, and utility districts

These rates can change from year to year, and they’re voted on by local officials. As your agent, I can help you estimate these rates based on your property location before you buy or sell.

3. What Is a Homestead Exemption and Do You Qualify?

If you live in your home as your primary residence, you may qualify for a homestead exemption. This lowers the taxable value of your home, which in turn lowers your tax bill.

The City of Dallas currently offers a 20% homestead exemption, and school districts and counties may offer additional exemptions. There are also exemptions available for seniors, disabled individuals, and veterans.

Tip: Make sure to apply for your exemption between January 1 and April 30 in the year after you buy your home.

4. What Happens If Your Appraisal Seems Too High?

Every spring, the Dallas Central Appraisal District (DCAD) sends out annual appraisal notices. If you think the value is too high, you can file a protest and provide evidence that your home is worth less.

As your real estate agent, I can help you gather comparable sales data to support your appeal.

5. Property Taxes and the Home Sale Process

When you sell your home, property taxes are typically prorated between you and the buyer based on the closing date. This means you only pay for the portion of the year you owned the home.

It’s also important for buyers to review the current tax history of a property before making an offer, as it can affect your monthly mortgage payment.

FAQs

Q1: When are Dallas property taxes due?
A: Property tax bills are typically mailed out in October and due by January 31 of the following year.

Q2: How do I know if I qualify for a homestead exemption in Dallas?
A: If you live in the home as your primary residence on January 1, you may qualify. You can file with the Dallas Central Appraisal District.

Q3: Can property taxes increase year to year?
A: Yes. Appraised values can go up, and local taxing authorities can adjust rates. However, homestead exemptions can help limit increases.

Q4: Do I still pay property taxes if I have a mortgage?
A: Yes. In most cases, your mortgage lender will collect your property taxes monthly and pay them on your behalf through an escrow account.

Q5: How can I estimate property taxes on a home I want to buy?
A: I can help you estimate based on the home’s current appraised value and taxing jurisdictions. This can also help you understand your future mortgage payment.

Final Thoughts

Dallas property taxes may seem complicated, but with the right guidance, they don’t have to be overwhelming. Whether you’re planning to buy or sell, I’m here to help you understand the full financial picture and avoid surprises.

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