Apr. 4, 2007 - Property Taxes in Northwest Harris and Southwest Montgomery Counties

When people move to the Houston area from other states they are often surprised by our high taxes. Texas is one of five states without an individual or corporate income tax. Most states derive about 40% of their revenue from income taxes, a third from sales tax and the rest from taxes on items such as business licenses and gasoline. Because of this Texas has a fairly high sales tax and significantly higher property taxes.

In Northwest Harris and Southern Montgomery Counties there are typically three different taxing authorities. There is a county tax; which covers such things as county, hospital, emergency services, port authority, flood control, community college etc. The second tax is a school tax. The amount of this tax will depend on which school district you live in. I have found the different school districts have a similar tax rate; they usually only vary by pennies. It doesn’t matter where you live you are going to have these two taxing authorities.

The third taxing authority is the MUD or Municipal Utility District. Basically this is your water. This is the taxing authority that is going to vary subdivision by subdivision. There are a few older subdivisions in the area that have paid their bonds and don’t have this tax. The rate will vary from .25 to over $2.00 per 100 value of your house. If you live in a country subdivision and are on a septic you will not have this tax.  Typically the country subdivisons are on septic and have community water.

Fortunately, Texas also has lower prices for homes than most other states. Because our taxes are so high this is something you need to consider when you are looking for your home. To get information for Harris County you can go to the Harris County Appraisal District HCAD. For Montgomery County you can get information at the Montgomery County Appraisal Tax Office.

Even with the higher property tax Texas ranks 14th in the lowest overall taxes paid among all 50 states.  What a great place to live!!