How Are My Taxes Calculated?

May 7, 2024 2:53 pm

We all know that taxes can be a headache. Tax rates, deadlines, exemptions, where do you start? Here are some tips on calculating taxes to make taxes a little easier this year specific to Montgomery County.

Property market value: Estimated worth or price at which a property can be bought or sold in the Texas real estate market.

Property appraised value: Assessed or estimated value or a property, as determined by a professional property appraiser or by the local county appraisal district

Factors of Appraisal Price:

  • Location of residence
  • Condition of home
  • Size of home
  • Recent Sales of Similar Homes

How to Protest Appraised Value:

You will receive your “Notice of Appraised Value” in spring. The deadline for protesting your home’s appraised value is May 15th or 30 days after receiving notice. File your complaint with the County Appraisal district (CAD). For the Montgomery County Appraisal District(MCAD) Click here.

After appraisal is set, local entities such as school districts, cities and municipal utility districts (MUDS) set their tax rates. Expect bill by the end of October and be sure to pay the bill by the end of January.

Tax Bill Formula

(Home Appraised value – Exemptions) Divided by 100. Then multiply the product by the tax rate = your bill. See video for example.

Texas Exemptions:

At the beginning of the year, the Board of Directors reviews and grants exemptions for the current year. Presently, Spring Creek Utility District has a 20% Homestead Exemption and a $55,000 exemption for homestead Residents who are over 65 or disabled.

Homestead exemption: A property owner who acquires property after Jan. 1 may receive the residence homestead exemption for the applicable portion of that tax year immediately on qualification of the exemption if the previous owner did not receive the same exemption for the tax year. The property owner must occupy the property as the owner’s primary residence and the residence homestead exemption cannot be claimed by the property owner on any other property.

Over 65 exemption: A homeowner who turns age 65 or who becomes disabled during a tax year, will qualify immediately for those exemptions, as if the homeowner qualified on Jan. 1 of the tax year. A surviving spouse age 55 or older may qualify for the deceased spouse’s exemption, if the spouse dies in the year that he or she reaches age 65. A disabled veteran or their surviving spouse whose home was donated by a charitable organization, the surviving spouse of a U.S. armed services member killed or fatally injured in the line of duty and the surviving spouse of a first responder killed or fatally injured in the line of duty also qualify immediately for those exemptions, as if they qualified on Jan. 1 of the tax year.

You can find a full list of exemptions here

Texas Comptroller Website

For more support from the Montgomery County Appraisal District, Click here.

Doing your taxes can be easy this year. You don’t have to do it alone. There are many resources available to you as a home or property owner. Contact MCAD for more information regarding taxes and appraisal value.

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