Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (2022)

Taxes. Just the word alone makes some people break out in hives. Whether it's income tax, sales tax, or property tax, the sole mention of the word can warrant groans and snickers. But that property tax, though… It’s the oldest tax levied in the U.S. and ratedthe second worst tax consistently in opinion polls of Americans. And San Antonio homeowners? They are particularly sensitive to this tax. (For all you soon-to-be homeowners, just wait- you'll soon know what we are talking about! In the meantime, try brushing up on everything you need to know about buying a home in San Antonio in ourbuyer's guide!)

Known by San Antonians as being excessively high, city property taxes are something that is inevitable if you own a home within the San Antonio city limits. But what if you didn’t have to pay these taxes? What if you could save nearly 20% per year just by carefully choosing where you buy your home? It’s no secret: these neighborhoods are out there… neighborhoods that promise “no city taxes.”

We took a look at several of the areas within, around, and outside the city of San Antonio and compared the different tax rates. The results were somewhat surprising, showing that some communities could save their homeowners over a grand a year in taxes.

So which ones are they? We did the homework so you can see for yourself.

Incorporated cities. Incorporated cities are communities of homes that have come together to form a city or town. Examples of these incorporated cities in San Antonio are Windcrest, Hill Country Village, Hollywood Park, Alamo Heights, Selma, Castle Hills, Shavano Park, and many more. While they are technically within the city limits of San Antonio, they are not required to pay the city of San Antonio property taxes. And at a tax rate of $.55 to every hundred dollars the property is valued at, that could be HUGE.

But, since property taxes are made up of more than just city taxes, we have to take into account all the line items that make up a property tax bill; Flood taxes, emergency taxes, school district taxes, etc. all combine with city taxes (or not) to create the final number you pay each year. Through our research, we found that Windcrest, Shavano Park, Selma, and Grey Forest had the best total property tax rates in comparison to the other incorporated cities throughout San Antonio. Take a look.

Windcrest. Though located in San Antonio, this “neighborhood” is actually an incorporated city. Paying eight different types of property taxes, the total bill still comes out lower than homes paying San Antonio property taxes. At a total rate of $2.42 per hundred dollars, a home in Windcrest valued at the San Antonio average home price of $240,000 would pay $5,807.75- $643.43 a year less than a homeowner paying San Antonio property taxes would pay if they owned the same home.

(Video) How property taxes have changed, skyrocketed in San Antonio neighborhoods

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (1)

666 Richfield Dr, Windcrest (See all homes for sale in Windcrest here)

Shavano Park. A highly desired area of town, Shavano Park homeowners pay seven different types of property taxes, yet their total tax rate is $2.41 for every hundred dollars. Again, assuming a home is valued at the average San Antonio home price, a homeowner in Shavano Park would pay $5,784.11 per year in property taxes. And while $620+ per year in savings might not seem like a huge break, homebuyers might want to understand that these savings could possibly be used towards a slightly higher budget when house hunting.

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (2)

96 Cliffside Dr, Shavano Park (See all homes for sale in Shavano Parkhere)

Selma. On the lower spectrum of tax rates when it comes to incorporated cities, Selma’s total property tax rate is $2.37 per hundred dollars. That’s nearly 13% lower than San Antonio’s total property tax rate. Multiply that by $240,000, and you come up with a tax bill of $5,696.17 per year.

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (3)

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16610 Clydesdale Run, Selma (See all homes for sale in Selma here )

Grey Forest. Known for its quaint lifestyle in the woods and sprawling estates, this incorporated city has the lowest city property tax rate in the county. At a mere $.088 per hundred dollars, the Grey Forest city property tax falls way below the San Antonio city propertytax. Sticking with our $240,000 theme, let’s take into account that the total Grey Forest tax rate is $2.21, which results in a yearly property tax bill of $5,305.79.

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (5)

19412 Greenhill Dr., Grey Forest (See all homes for sale in Grey Foresthere)

Living outside the city limits. Living outside the city limits has its benefits. With the ability to obtain cheaper home and auto insurance, the possibility of larger lots, and the lure of no city property taxes, it seems as if everyone would want to get outside the city lines! And while it’s easy to think only of these benefits, we also have to remember that no city property taxes can also mean things like no city trash pickup, private water service, and sometimes private sewer service. But, if that doesn’t deter you, the benefit of not having to pay ANY city property taxes could further entice you to move.

Keeping in mind that San Antonio’s city property tax rate is $.55 per hundred dollars, eliminating this line item could be huge… and it is in many areas. Homeowners in neighborhoods such asAlamo Ranch, Timberwood Park, Fossil Creek, Redbird Ranch, and many others have historically fought in order to combat annexation by the city. One of the concerns? The addition of that San Antonio city property tax. Take a look at how this would impact property taxes.

(Video) Cost Of Living In San Antonio

Alamo Ranch. This thriving community lies just outside the city limits, therefore, residents who own property there are not required to pay San Antonio property taxes. They are, however, required to pay seven other types of property tax, ranging from Northside ISD taxes to Bexar County Taxes, creating a total tax rate of $2.22 per every hundred dollars. If you take the price of an average home in San Antonio ($240,000) and use this number in Alamo Ranch, you would be looking at a yearly property tax bill of $5,333.53. Seem hefty? Not so fast… The same priced home within the city limits, also pays seven different taxes, with one of them being San Antonio property taxes. This home would rack up a bill of $6,408.18. Bottom line? Living in the same priced home in Alamo Ranch vs. say, Stone Oak, an area inside the San Antonio city limits, would save a homeowner over $1,000 a year.

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (6)

5427 Dragon Weed, Alamo Ranch (See all homes for sale in Alamo Ranchhere)

Fossil Creek/ Fossil Ridge. Situated a hair outside the city limits, these two neighborhoods have a total tax rate that is $.46 less per hundred dollars than that of homes within the city limits. With a total tax rate of $2.20, a home valued at $240,000 in these neighborhoods would pay $5,298.08 per year. Now, because we as San Antonio real estate experts know full well that these luxury neighborhoods don't offer homes less than $500k, let’s compare numbers based on reality. A home in Fossil Creek/ Fossil Ridge that costs $565,000 would pay a tax bill of $12,472.57. The same home in San Antonio? $15,085.92.

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (8)

4143 Fossil Park, Fossil Ridge (See all homes for sale in Fossil Ridge here )

(Video) How much does it REALLY cost to live in San Antonio Texas ?

Timberwood Park. Once a neighborhood considered to be in the “boonies,” Timberwood Park has garnered the attention of San Antonio home buyers in more recent years as San Antonio has continued to push out into the Spring Branch/ Bulverde area. With diverse housing stock, larger plots of land, no city property taxes, AND good schools with a comparable tax rate to other desirable San Antonio districts, you can imagine why. At a total tax rate of just under $2.18, a tax bill in Timberwood Park for a $240,000 home is $5,243.25.

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (9)

331 Spacious Sky, Timberwood Park (See all homes for sale in Timberwood Parkhere)

With lower property tax rates in certain areas, you can have much greater “buying power” in comparison to other neighborhoods. The chart below shows how much home you can purchase in the areas we described in this article after factoring in the lower property tax rates in these areas. As a result, for example, the monthly mortgage and property tax cost on a $240,000 property in Stone Oak is equivalent to a home that costs $254,500 in Timberwood Park. **

Want a Break on Property Taxes? These San Antonio Communities May Keep More Money in Your Pocket (10)

While taxes certainly may not be fun to think about, as most people would admit, both cities and school districts rely heavilyon property tax. Indeed, the bulk of property tax monies raised at the local level are devoted to education, not city or county services, which for many residents make it sort of OK. For all its disadvantages, property tax allows many local governments to be responsive to their citizens and deliver many of the services they need and desire. And no matter where you live, this will always be important.

(Video) Property Tax Appraial

**Mortgage payments were calculated based on a down payment of 3%, an interest rate of 4.19%, and a PMI payment of $200/ month. These figures depend on many different factors. Please contact a lender to get pricing information that matches your situation.

FAQs

At what age do seniors stop paying property taxes in Texas? ›

For many senior homeowners, rising property taxes can be a threat to their financial stability, even though their mortgages may be paid off. The Texas Tax Code, Section 33.06, allows taxpayers 65 years of age or older to defer their property taxes until their estates are settled after death.

Is there a property tax break for seniors in Texas? ›

For persons age 65 or older or disabled, Tax Code Section 11.13(c) requires school districts to provide an additional $10,000 residence homestead exemption. Tax Code Section 11.13(d) allows any taxing unit to adopt a local option residence homestead exemption. This local option exemption cannot be less than $3,000.

Is there a property tax break in Texas? ›

Effective January 1, 2022, a Texas property tax exemption change will benefit new property owners by allowing the homestead exemption for a partial year. Previously, homesteads acquired after January 1 were not eligible for the exemption until the following tax year.

How can I lower my property taxes in Bexar County? ›

To apply for an exemption, call the Bexar Appraisal District at 210-224-2432. You may also contact their agency directly by email or visit their website to obtain the necessary forms. The exemption will be forwarded to the tax office as soon as the Appraisal District updates their records.

At what age do seniors stop paying property taxes? ›

If you are over 65 years of age, or permanent and totally disabled (regardless of age), or blind (regardless of age), you are exempt from the state portion of property tax. County taxes may still be due.

How can I lower my property taxes in Texas? ›

There are generally two ways that Texas homeowners can reduce their property taxes, through tax exemptions or protesting their property's assessed value. Tax Code Section 25.18 states that all appraisal districts must complete appraisals on every property in their district at least every three years.

Do you have to pay income tax after age 75? ›

There is no age when a senior gets to stop filing a tax return, and most seniors are required to file taxes. The taxpayer's taxable income determines whether a tax return is required. The rules for seniors are slightly different than those for people under the age of 65.

How much can property taxes increase per year in Texas? ›

According to state law, the taxable value for a homestead cannot increase more than 10 percent a year. That 10 percent cap is why our net appraised value for 2022 is preliminarily pegged at $409,372, not $656,039. But that's not the end of the story for us. Let's take a look at our property taxes in 2021.

Is Texas tax friendly for seniors? ›

Is Texas tax-friendly for retirees? Texas is a tax-friendly state, as it does not have an income tax. As a result, Social Security retirement benefits, pension income, retirement account income and all other forms of retirement income are not taxed at the state level in Texas.

How much do property taxes decrease at age 65 in Texas? ›

Age 65 or older and disabled exemptions: Individuals age 65 or older or disabled residence homestead owners qualify for a $10,000 residence homestead exemption for school district taxes, in addition to the $40,000 exemption for all homeowners.

Do you get money back from property taxes in Texas? ›

If a property owner has already paid taxes calculated using the higher tax rate, the taxing unit must automatically refund the overpayment if it is $1 or more. A taxpayer must request a refund within 90 days if the overpayment is less than $1.

Which county in Texas has the highest property taxes? ›

The highest is Fort Bend at 2.23%. To figure your tax bill, multiply the rate by the appraisal value of your property.

How do I fight property taxes in San Antonio? ›

File a notice of protest

The protest form can be submitted online using the Bexar Appraisal District's eFile system. Other options available include sending the form by email to protest@bcad.org, by fax to 210-242-2454 or mail: P.O. Box 830248, San Antonio, TX 78283.

How can I minimize property taxes? ›

5 Tips to Reduce Tax on Your Investment Property
  1. Keep clear, up-to-date records of all your expenses. ...
  2. Understand the difference between capital works, repairs and maintenance. ...
  3. Claim capital assets and borrowing expenses. ...
  4. Track your depreciation and capital works schedule. ...
  5. Negatively gear your investment property.
28 Jan 2021

How can I fight property tax increase in Texas? ›

You may file a motion for correction if the appraisal district appraised your residence homestead property at least one-fourth higher than its correct appraised value. You must file this motion and pay taxes on the portion of the property value not in dispute before the delinquency date.

Do you have to pay income tax after age 70? ›

If you are at least 65, unmarried, and receive $14,700 or more in non-exempt income in addition to your Social Security benefits, you typically must file a federal income tax return (tax year 2022).

Do you have to pay income tax after age 80? ›

There's no set age at which the IRS says you no longer have to file income tax returns or pay income taxes, and it's not as though you reach an age that absolves you of your tax bill.

What age are you exempt from taxes? ›

You can stop filing income taxes at age 65 if: You are a senior that is not married and make less than $14,250. You are a senior that is married, and you are going to file jointly and make less than $26,450. You are a qualifying widow, and earned less than $26,450.

How do you get around high property taxes? ›

Tips for Reducing Your Property Tax
  1. Start with Your Tax Assessment. ...
  2. Get Involved with the Assessment. ...
  3. Hire an Independent Assessor. ...
  4. Research the Assessed Value of Similar Homes in Your Area. ...
  5. File a Tax Appeal to Change the Value of Your Home. ...
  6. Avoid Value-Increasing Improvements to Your Home.
24 Mar 2022

Should I protest my property taxes in Texas? ›

In fact, property taxes are only raised about once in every 10,000 Appraisal Review Board hearings. That is less than 1% of the time! While there's little risk your property taxes will increase, we do not advise you protest yourself.

What county in Texas has the cheapest property taxes? ›

King County collects the highest property tax in Texas, levying an average of $5,066.00 (1.56% of median home value) yearly in property taxes, while Terrell County has the lowest property tax in the state, collecting an average tax of $285.00 (0.67% of median home value) per year.

How much can a 70 year old make while on Social Security? ›

In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2022, this limit on your earnings is $51,960.

How do I get the $16728 Social Security bonus? ›

How to get the $16,728 bonus in retirement?
  1. Work as long as you can: the later you retire the higher your benefit will be. Remember that 70 is the maximum age. ...
  2. Years worked: If you work less than 35 years you will have a reduction in your SSA check. ...
  3. High salary: with a high salary you will have a high retirement.
14 Sept 2022

What is the highest monthly Social Security payment? ›

The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2022, your maximum benefit would be $3,345. However, if you retire at age 62 in 2022, your maximum benefit would be $2,364. If you retire at age 70 in 2022, your maximum benefit would be $4,194.

Why are Texas property taxes so high? ›

Texas' local governments rely heavily on property taxes to pay the salaries of police officers and firefighters and for government services like roads, libraries, parks and public schools. Coupled with the fact that Texas has no state income tax, Texans' property tax bills are among the highest in the nation.

Are property taxes paid twice a year in Texas? ›

The simple answer: your property taxes are due once yearly. However, your mortgage payments may have you pay toward property taxes every month. Your lender will make the official once-yearly payment on your behalf with the funds they've collected from you.

What is property tax rate in San Antonio? ›

Property Tax Rate

The Fiscal Year (FY) 2023 M&O tax rate is 33.011 cents per $100 of taxable value. The FY 2023 Debt Service tax rate is 21.150 cents per $100 of taxable value. These two tax rate components together provide for a total tax rate for FY 2023 of 54.161 cents per $100 of taxable value.

Which president took money from Social Security? ›

President Jimmy Carter
1.SOCIAL SECURITY SYSTEM--May 9, 1977
4.SOCIAL SECURITY FINANCING LEGISLATION -- December 1, 1977
5.SOCIAL SECURITY AMENDMENTS OF 1977 --December 20, 1977
6.SOCIAL SECURITY FINANCING LEGISLATION --April 10, 1978
7.SOCIAL SECURITY DISABILITY AMENDMENTS OF 1980 -- June 9, 1980
8 more rows

What is the best state to live on Social Security? ›

Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the cost of living is about 11% below the national average, while one-bedroom rents are about one-third less than national norms.

What state is best financially to retire in? ›

For those of us who want to retire in the U.S., there are nine states that have no state income taxes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

What taxes do seniors pay in Texas? ›

Well, yes, it's true that there are no income taxes in Texas...which means no taxes on Social Security benefits, pensions, 401(k)s, IRAs, or any other type of retirement income.

Does Will County have a senior exemption for property taxes? ›

Senior Citizen Homestead Exemption (PTAX– 324)

Provides an annual assessment reduction in the home's equalized assessed value (EAV) of $5,000.

What state has the lowest property taxes for retirees? ›

Delaware

It has low property taxes, while home prices are close to the typical price in the United States. Property taxes aren't the only area where Delaware residents save money. The state also has no sales tax and retirement income exemptions, which makes it a popular place for retirees.

Do you have to pay property taxes all at once Texas? ›

In Texas, property taxes are due once yearly. However, you may have to make monthly payments.

Can you write off property taxes? ›

Homeowners who itemize their tax returns can deduct property taxes they pay on their main residence and any other real estate they own. This includes property taxes you pay starting from the date you purchase the property. The official sale date is typically listed on the settlement statement you get at closing.

How much property tax do you pay at closing in Texas? ›

Texas seller closing cost overview
Closing costAverage costSeller responsibility
Property taxesAverage $2,275.00 per year (based on $125,800 median assessed value or 1.81%)Customary
Mortgage payoffAsk lenderCustomary
Real estate attorney feesAbout $350/hourNot necessary except in certain cases
5 more rows
11 Nov 2021

What town in Texas has no property tax? ›

The City of Stafford holds the unique distinction of being the largest city in Texas to abolish city property taxes. This includes both commercial and residential properties. In addition to a lack of city property taxes, the State of Texas has no state property taxes.

What city in Texas has highest property taxes? ›

Rankings
RankCityEffective Property Tax Rate
1.Milwaukee, Wisconsin2.17%
2.El Paso, Texas2.13%
3.Fort Worth, Texas1.86%
4.San Antonio, Texas1.85%
7 more rows

What city in Texas has the best housing market? ›

1. Waco, Texas. Waco, population 135,858, is the best city for the real estate investor to buy a house in Texas, according to our study.

What age do you stop paying property taxes in Texas? ›

For many senior homeowners, rising property taxes can be a threat to their financial stability, even though their mortgages may be paid off. The Texas Tax Code, Section 33.06, allows taxpayers 65 years of age or older to defer their property taxes until their estates are settled after death.

Are property taxes going up in San Antonio? ›

The city projects 13.8% growth in property tax revenue in 2023, far exceeding the new 3.5% annual increase cap established in 2019 by the Texas Legislature.

Can I protest my Bexar county property taxes online? ›

The Online Services Portal is available to ALL owners that would like to conduct business with the Appraisal District electronically. This service includes filing an exemption on your residential homestead property, submitting a Notice of Protest, and receiving important notices and other information online.

What are tax breaks? ›

When the government offers you a tax break, it means you're getting a reduction in your taxes. A tax break can come in a variety of forms, such as claiming deductions or excluding income from your tax return.

How long do I have to live in a house to avoid capital gains tax? ›

The six-year rule allows you to avoid paying capital gains tax on the sale of your prior property if you vacate it, move into a different rental, and then rent out your previous residence before selling it before the six-year period has passed.

Where can I invest to avoid tax? ›

Tax saving instruments and sections therein :
  • Fixed deposit. ...
  • PPF ( Public provident scheme ) ...
  • ULIP (Unit linked insurance plan) ...
  • National Savings Certificate. ...
  • Senior Citizen Savings scheme. ...
  • Life insurance. ...
  • Pension plans. ...
  • Health insurance or Mediclaim.

How much can your property taxes go up in one year in Texas? ›

According to state law, the taxable value for a homestead cannot increase more than 10 percent a year. That 10 percent cap is why our net appraised value for 2022 is preliminarily pegged at $409,372, not $656,039. But that's not the end of the story for us. Let's take a look at our property taxes in 2021.

What is the maximum property tax increase allowed in Texas? ›

The appraised home value for a homeowner who qualifies his or her homestead for exemptions in the preceding and current year may not increase more than 10 percent per year.

What is the property tax exemption for over 65 in Texas? ›

Age 65 or older and disabled exemptions: Individuals age 65 or older or disabled residence homestead owners qualify for a $10,000 residence homestead exemption for school district taxes, in addition to the $40,000 exemption for all homeowners.

How does the over 65 property tax exemption work in Texas? ›

What is the property tax exemption for over 65? Homeowners aged 65 years or older qualify for this exemption. All homeowners aged 65 years or older qualify for a standard $25,000 homestead exemption. Other than this, the Texas school districts offer a $10,000 exemption for qualifying homeowners aged over 65.

What state has the lowest property tax for seniors? ›

States with No Property Tax for Seniors
  • Hawaii.
  • Mississippi.
  • New Hampshire.
  • New York.
  • South Carolina.
  • South Dakota.
  • Texas.
  • Washington.

What is the over 65 property tax exemption in Bexar County? ›

The Over 65 exemption is for property owners who are 65 years of age or older and claim their residence as their homestead. This exemption is a maximum of $85,000 of taxable valuation.

How can I avoid paying taxes? ›

So here it is the four ways you can legally avoid paying taxes on US income tax:
  1. Move outside of the United States. ...
  2. Establish a residence somewhere else. ...
  3. Move to one of the US territories. ...
  4. Renounce your citizenship.

How much does homestead exemption save you in Texas? ›

In Texas, the residential homestead exemption entitles the homeowner to a $25,000 reduction in value for school tax purposes. Counties, cities, and special taxing districts may offer homestead exemptions up to 20% of the total value. Most counties in North Texas do offer this 20% reduction.

At what age is Social Security not taxable? ›

Are Social Security benefits taxable regardless of age? Yes. The rules for taxing benefits do not change as a person gets older. Whether or not your Social Security payments are taxed is determined by your income level — specifically, what the Internal Revenue Service calls your “provisional income.”

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