How To Handle The Taxation In Texas?

In Texas, people do not have to pay personal income taxes. Instead, they have to pay property taxes for both personal property and even real property. In Texas, all their property taxes are collected and assessed at the local level and the collected amount will be used throughout the state.

The Dallas texas property tax will be useful in paying for essential community needs like schools, cities, and roads in the counties and even for fire protection.

Tax Appraisals for senior citizens

It is not correct to raise the taxes of the seniors as it will be difficult for their financial stability as they don’t have stable work anymore. The Texas Tax code states that people who are more than 65 years old, can defer their taxes until their estates are settled after the death.

Common Property Tax Exemptions to be noted

  1.   For Disables Veterans

For US armed officials who are veterans, there is a 100 % exemption from the dallas texas property tax appraisal which is a good thing.

  1.   For Seniors and Disabled Citizens

For 65 years or old aged citizens, there is an exemption of $10000 in school districts and in other local property taxes also they will receive an exemption of 3000 $. Once they are no more, their widows will get the same exemption but the condition here is that they have to be above 55 years old.

  1.   For Homestead owners

If the homestead is in the principal residence starting from Jan 1st of that year, he will get a reduction of 25000 $ in the tax in the total appraised value whereas, in a few school areas, he will get a reduction of $5000 that is up to 20 % reduction in the appraised value of the property tax.

What exactly is a personal property tax?

If the person has a car or an own vehicle, he may get a personal property tax depending on the value of the vehicle he is owning. And this tax has to be paid once a year. If the person is using the same car that he used last year, the tax he has to pay will be dependent on the current value of the car.

The states can tax the individual regarding his car if the vehicle is registered under the state’s name or the vehicle is parked in the state’s jurisdiction.

But for Texas and 8 other states, there is no such thing as personal tax.

States that don’t charge individual income tax

These states generate their revenue from sales and will use taxes like property tax and corporate income taxes instead. They will not collect individual income tax.

  1.     Texas
  2.     Alaska
  3.     Nevada
  4.     South Dhaka
  5.     Washington
  6.     Florida
  7.     Tennessee
  8.     Wyoming
  9.     New Hampshire


The reasons why the Dallas texas property tax is high are

  1. As the state has no personal income tax the state’s activities should depend on the property tax and sales tax alone.
  1. The property tax rates are set up by the local authorities according to their own will.
  2. The appraisal values that are there on the real estate keep on going up increasing the property tax altogether.