The Complete Guide to Property Taxes in Cameron and Hidalgo Counties
Understanding property taxes is essential for homeowners and prospective buyers in Cameron and Hidalgo Counties. As a significant part of homeownership costs, property taxes can affect your monthly payments, overall budget, and long-term investment in real estate. This guide covers everything you need to know about property taxes in the Rio Grande Valley (RGV), including how they are calculated, current rates, potential exemptions, and answers to frequently asked questions.
How Are Property Taxes Calculated?
Property taxes in Texas, including Cameron and Hidalgo Counties, are calculated based on the assessed value of your property and the local tax rate set by taxing authorities, such as school districts, cities, and counties.
Assessed Value: Determined by the county appraisal district, this value reflects your property's market worth as of January 1 each year.
Tax Rate: Expressed as a percentage (e.g., 2.5%), this rate is set annually by each taxing entity. Multiple entities can apply their rates to your property, including school districts, city governments, and county taxes.
Formula:
Property Tax = Assessed Value × Tax Rate
For example, if your home is valued at $200,000 and the combined tax rate is 2.5%, your annual property tax bill would be $5,000.
Current Property Tax Rates in the RGV
Property tax rates in the Rio Grande Valley vary by location. Below are the approximate rates for 2024 in Cameron and Hidalgo Counties (rates may vary by district):
Cameron County
County Tax Rate: 0.39%
Brownsville ISD: 1.25%
City of Harlingen: 0.58%
Hidalgo County
County Tax Rate: 0.57%
McAllen ISD: 1.27%
City of Edinburg: 0.63%
Tip: Check your local appraisal district's website (Cameron CAD or Hidalgo CAD) for the most up-to-date rates and details about your property.
Potential Exemptions and Savings
Texas offers several property tax exemptions that can significantly reduce your tax burden, including:
Homestead Exemption
Reduces the taxable value of your primary residence by up to $40,000.
Applies only to owner-occupied homes.
Over-65 and Disabled Person Exemptions
Provides additional reductions for qualifying homeowners.
Some jurisdictions offer "frozen" tax rates for seniors.
Veterans’ Exemptions
Offers partial or full exemptions for disabled veterans or their surviving spouses.
To claim exemptions, you must file the appropriate forms with your county’s appraisal district by the deadline, typically April 30.
FAQs About Property Taxes in the RGV
1. Can Property Taxes Affect My Mortgage Payment?
Yes, property taxes are typically included in your monthly mortgage payment through an escrow account. Your lender collects a portion of the annual tax bill each month and pays it on your behalf. If tax rates or assessed values increase, your monthly mortgage payment may rise to cover the difference.
2. How Often Are Property Taxes Assessed?
Property values are assessed annually as of January 1. Notices of appraised value are usually mailed to property owners in the spring.
3. What Happens If I Disagree with My Property’s Assessed Value?
You have the right to appeal your property’s assessed value. Contact your county appraisal district to file a protest and provide evidence supporting a lower valuation, such as recent sales data or photos of property conditions.
Why Understanding Property Taxes Matters
Knowing how property taxes work helps you budget effectively and avoid surprises in your mortgage payment. Additionally, exploring exemptions and appealing assessments can save you money over time.
For more tips on real estate and homeownership, check out our comprehensive guide to home-buying in the RGV. If you’re curious about other costs associated with homeownership, don’t miss our post on home maintenance tips for new buyers.