That calculation is based on residents’ primary homes, which benefit from a homestead exemption that reduces their properties’ taxable values by 20%. It also assumes no change in appraised value from last year, though about half the homes in Harris County increased in value and thus will pay more.
Residents can use the calculator below to get an idea of what their bill may look like.
The county’s cost benchmark does not apply to the 45% of Harris County residents who rent their homes and do not benefit from homestead exemptions.
Those residents likely will bear the brunt of this year’s tax increase, said Bill Baldwin, a realtor and director of the Houston Real Estate Information System.
“If it’s your homestead, they can only raise the value so much for tax purposes every year, so any tax increases disproportionately place the burden on the non-homestead property,” Baldwin said. “That includes renters.”
By law, a homestead’s taxable value cannot rise more than 10% annually.
It’s difficult to determine the exact amount landlords will attempt to pass on to their tenants. Baldwin said they typically will raise rents as high as the market will bear, but any actual increases will depend on the appraised value of a property, the number of tenants who live there and market demand.
Harris County taxes make up only a portion of residents’ total bills. School and special-purpose districts, such as Municipal Utility Districts, often set tax rates higher than those approved by Commissioners Court.
Commissioners have authority over four distinct taxing entities: The county itself — which accounts for a majority of the combined rate — Harris Health, the Port of Houston and the Harris County Flood Control District. The county accounts for a little over 60% of the proposed increase, with Harris Health responsible for a majority of the remainder.
The 42-cent rate adopted solely for Harris County will bridge a projected $188 million deficit and fuel a more-than $3.1 billion budget for the coming fiscal year, which starts Oct. 1.