With Texas lawmakers back in session, property taxes are a major focus, as homeowners struggle with rising costs. Pearland, Conroe, Atascocita, and Sugar Land rank among the nation’s highest property tax areas, prompting calls for tax relief and reform.
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As the Texas Legislature reconvenes, addressing property tax relief has emerged as a key focus for lawmakers. Gov. Greg Abbott has recognized it as one of his seven emergency priorities, highlighting that Texans are experiencing a crisis of affordability.
The state begins this two-year budget cycle with a $24 billion surplus, and a University of Houston study revealed that half of Texans prefer it allocated for property tax relief. Home values have increased significantly since the COVID-19 pandemic, intensifying the problem. According to the Tax Foundation, Texas has a property tax rate of 1.47%, placing it as the seventh highest in the United States.
The suburbs of Houston rank among the highest in the nation for taxes.
A study by SmartAsset revealed that Pearland holds the highest effective property tax rate in Texas and ranks 10th in the nation, with a rate of 2.16% of assessed value. In 2023, homeowners paid a median of $7,847, while the median home value stood at $380,000, which is significantly lower than the national median of $420,000.
Several communities in the Houston area also stand out as some of the highest-taxed cities in the United States:
The significant property tax burdens arise as Houston suburbs such as Conroe and Atascocita are recognized as some of the fastest-growing regions in the country.
Homeowners in Texas are not the only ones dealing with high property taxes. Peoria, IL (2.64%) and Rockford, IL (2.46%) lead the national rankings. Texas stands out due to its absence of a state income tax, which positions property taxes as the main source of revenue for schools, cities, and counties.
As tax relief becomes a significant legislative focus, Texans are paying close attention to how lawmakers will tackle the increasing property tax burdens in 2024.
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