Understanding the Plano TX Property Tax Rate

Plano, Texas, is a bustling city located in the Dallas-Fort Worth metroplex. It’s known for its excellent schools, beautiful parks, and thriving economy. However, like all cities, Plano has a property tax rate that homeowners need to be aware of when purchasing property.

The Plano TX property tax rate is a percentage of a home’s assessed value that homeowners are required to pay annually. This tax is used to fund local government services such as schools, parks, police and fire departments, and infrastructure improvements. Understanding how the property tax rate is determined and how it affects your budget is essential for homeowners in Plano. In this post, we’ll explore the Plano TX property tax rate in more detail.

How is the Plano TX Property Tax Rate Calculated?

The Plano TX property tax rate is calculated by multiplying the assessed value of your property by the tax rate set by local government officials. The assessed value of your property is determined by the Collin County Appraisal District (CCAD), which assesses the value of all properties in Plano on an annual basis. The assessed value is based on various factors such as the size of the property, the age of the property, and its location.

The tax rate is set by local government officials, including the Plano City Council, Collin County Commissioners Court, and Plano Independent School District Board of Trustees. The tax rate is expressed in dollars per $100 of assessed value. For example, if the tax rate is $2.50 per $100 of assessed value, a home with an assessed value of $200,000 would have an annual property tax bill of $5,000 ($2.50 x 200).

The Plano TX property tax rate is made up of several components, including the city tax rate, county tax rate, school district tax rate, and other special district tax rates. The city tax rate is set by the Plano City Council, the county tax rate is set by the Collin County Commissioners Court, and the school district tax rate is set by the Plano Independent School District Board of Trustees. The other special district tax rates are determined by various entities such as the Collin County Community College District and the North Texas Municipal Water District.

What is the Current Plano TX Property Tax Rate?

As of 2021, the current Plano TX property tax rate is $0.448 per $100 of assessed value for the city, $0.1667 per $100 of assessed value for the county, and $1.3395 per $100 of assessed value for the school district. The total tax rate for Plano homeowners is $1.9542 per $100 of assessed value. This means that a home with an assessed value of $300,000 would have an annual property tax bill of $5,862.60 ($1.9542 x 300).

The current Plano TX property tax rate is slightly lower than the 2020 rate, which was $1.988 per $100 of assessed value. The decrease in the tax rate was due to a decrease in the school district tax rate, which was offset by slight increases in the city and county tax rates.

How Does the Plano TX Property Tax Rate Compare to Other Cities in Texas?

The Plano TX property tax rate is higher than the average property tax rate in Texas, which is $1.81 per $100 of assessed value. However, it’s important to note that property tax rates can vary widely within Texas, with some cities having much higher rates than others. For example, the property tax rate in Houston is $2.53 per $100 of assessed value, while the rate in Austin is $2.14 per $100 of assessed value.

When compared to other cities in the Dallas-Fort Worth metroplex, the Plano TX property tax rate is relatively low. For example, the property tax rate in Dallas is $2.79 per $100 of assessed value, while the rate in Fort Worth is $2.52 per $100 of assessed value.

How Can Homeowners Lower Their Plano TX Property Tax Bill?

While homeowners in Plano are required to pay property taxes, there are ways to lower your property tax bill. One way is to apply for homestead exemption, which is available to homeowners who use their property as their primary residence. The homestead exemption reduces the taxable value of your property by a certain amount, which can result in significant savings on your property tax bill.

Another way to lower your property tax bill is to challenge the assessed value of your property if you believe it is too high. Homeowners can file a protest with the Collin County Appraisal District if they believe their property has been overvalued. The appraisal district will review the protest and make a determination on the property’s value. If the value is lowered, the homeowner’s property tax bill will be reduced.

Conclusion

Overall, understanding the Plano TX property tax rate is essential for homeowners in the city. By knowing how the tax rate is calculated and how it compares to other cities in Texas, homeowners can budget accordingly and plan for their property tax bill. Additionally, taking advantage of homestead exemption and protesting the assessed value of your property can help lower your property tax bill and save you money in the long run.

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Learn about the Plano TX property tax rate, how it’s calculated, and how it compares to other cities in Texas. Discover ways to lower your property tax bill and plan for your budget as a homeowner in Plano.

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