Governor Abbott addresses Texas' high property tax rates amid calls for relief

Texas homeowners are urging Governor Greg Abbott to provide relief from rising property taxes. This issue is part of Abbott's agenda, as he addressed what he terms an "affordability crisis" in his State of the State address.

“That’s especially true as it concerns the affordability of owning a home or renting a home. And one reason for that crisis is because of skyrocketing property taxes,” said Abbott.

Texans face one of the highest property tax rates in the nation, with an average payment of $3,872 in 2023. This high rate results from a 42% increase in home market values since 2019. Property tax payments are calculated by multiplying a home's assessed value by the property tax rate, leading to higher taxes as home values rise.

Texas relies heavily on property taxes due to its lack of state income tax, using these funds alongside state and local sales taxes to finance public services. In 2023, property taxes accounted for about half of local school funding according to the Texas Legislative Budget Board.

Efforts have been made to address high property tax rates. In 2023, Texas legislators passed $12.7 billion in cuts and provided additional funding to local schools, resulting in a 7% decrease in homeowner taxes based on analysis by the Texas Tribune.

With a $24 billion state surplus now available, Abbott and other lawmakers are seeking further cuts. Abbott criticized counties exploiting "loopholes" to bypass deductions and emphasized that “Loopholes that increase your property taxes must be banned,” adding that no taxing authority should raise taxes without two-thirds voter approval.

Abbott has identified property tax cuts as one of his seven "emergency items," requiring legislative attention within the first 60 days of their session.