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The Central Appraisal District appraises property in each County and parts of surrounding counties in order to determine the value of your property. This value is, in turn, used by the taxing entities in calculating your property taxes. Your property tax amount is calculated by taking the market value (as determined by the appraisal district) and subtracting any appropriate exemptions (granted by the appraisal district) to determine the taxable value, then multiplying this taxable value by each applicable taxing entity's tax rate.
To calculate your property tax bill you must divide the taxable assessed valuation of your home by $100.00 and then multiply that figure by combined tax rate. For instance If the the property is located in Plano and the appraised and taxable value of property is $100,000. than the amount of property tax owed is $2,530. Texas state law defines the assessed value of real property as the market value of a property on January 1, the first day of the tax year.
Your property is actually taxed by the cities, schools, counties and special districts (the taxing entities). They calculate the amount of tax you owe, send you the tax bill and collect the tax payments.
Texas has no personal or corporate income tax and no state property or unitary tax. Within each county, Central Appraisal Districts provide uniform appraisals to various local taxing entities such as cities, counties and school districts. These political subdivisions may each impose ad valorem taxes on real and personal property. Other taxing entities include hospital, water, transportation and junior college districts. |